All of us dream of buying a second property. Buying a second property is almost always a pleasant experience. With the current economic scenario with low interest on FD’s and risk associated with mutual funds, property seems to be the only alternative for parking surplus funds.
There are many factors like income tax, liquidity, location and more, which help you decide for a second property. It is important to do in-depth research before purchase, this will help you make sense of your investment and make you financially solid and strong
Let’s look at some factors to consider while buying a second property:
- Investing in affordable housing is a great idea as there is a demand-supply gap and in addition to rental income, there is a high probability of good capital appreciation
- Buyers can also look for micro market trends where there is no oversupply in the product category, which can be both within the city or suburbs,
- Buyers must try to make higher down payments for the second loan as these loans are usually taken when the buyer is professionally at peak.
“It is important to identify the right market for buying a second property which means a location that has the potential to grow further. There are locations with premeditated social and infrastructural developments”
The right time for buying a second property depends on individual profile and market scenario, For those intending to buy a second home for their personal enjoyment, the market, considering the pricing aspects, is favorable right now and will improve even further”,
So, in short, the major factors are budget, demand supply, location, time period, and loan. Liquidity and purpose.
You should consider all these factors before going in for a second property.
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