subject: Property Prices to go up in this year [print this page] Author: Raja Kaushar Author: Raja Kaushar
SHOULD YOU INVEST IN A SECOND HOUSE? Kavita Sriram outlines some factors that make investing in a second home an attractive option Vikas lives in a threebedroom apartment. He purchased the property some six years ago for Rs 30 lakhs. Today, the cost of the apartment stands doubled. With an increase in his pay packet, Vikas can save some additional money every month. He is contemplating on buying a second house. Is it a wise decision? Correction phase The realty sector can be best described as in a correction phase. Ideally, this is the best time to invest in property. Easy home loans Some years ago, procuring a home loan was considered quite difficult. People could buy their own homes only towards the end of their careers when they had saved enough money. Things have changed over the years. If you are a salaried individual, employed with a large, reputed firm, with no history of previous defaults, getting a home loan is absolutely simple. The lender decides on your eligibility after considering factors like age, The rental income that a second property can fetch is a major factor that many buyers take into consideration. This rental income can help pay off a large portion of the EMIs. If the property is closer to the heart of the city, the rental income could be higher. Affordable housing Over the past few years, civic infrastructure of the city has received tremendous boost. Highways of international standards have improved connectivity and made road travel pleasant. Affordable housing has mushroomed in the outskirts of the city. When you look for a second property, it is location that holds the key to a good investment. Some people may want to rent it out while others prefer it to be a vacation home. Ensure that the property is close to schools, hospitals and other amenities, in case you want to rent it out. A vacation home on the other hand, needs basic furnishing and must be close to a railway station or airport. Courtesy:- Times Property dt:- 02-01-2010About the Author:
