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Things To Know While Getting A Second Home


Monthly Archives: November 2016

Things To Know While Getting A Second Home

In today’s hectic world, people are jammed with plenty of work and they do not have time to think about relaxing. To take a break and relax yourself it is better to have a second home. When you desire to acquire a second home, it is certainly for enjoying and resting on your weekend or for getting the house for lease for extra profit.

If you are thinking to get a second home there are some basic facts that you should follow before investing on it.

Home with Precise Values & Returns

  1. The home you acquire should not only have high value but also give good returns.
  2. Get proper guidance before buying a property, so that you need not regret in future.
  3. Make sure that you’re focused and clear with your preferences.

Choose the Perfect Locality

  1. Look for homes that have everything you require for you to live. Moreover if you want a home to spend your day offs then look for an exotic locality by inquiring it with the concern locality realty agent.
  2. Besides, if you require a house after your retirement, then check for places which has excellent healthcare centers, malls and connectivity.

Ensure Good Maintenance

  1. The most important of all the above is maintenance, ensure that proper maintenance is catered if you are leasing your property.
  2. Never forget to insure since the second home comes under primary category and it should have the best maintenance.

Look for Better Mortgages

  1. The realty market values keep changing, so try avoiding the colorful offers your investor provides.
  2. Make sure you get the perfect and reliable deals, in order to have a secure and hassle free homes.

Evaluate the Extra Charges

  1. Always remember to add your insurance and maintenance charges when evaluating the cost on your second house.
  2. If unexpected calamities like floods, forest fires and hurricanes come your way, it is better to insure your homes at the earliest for a safe living.

Reduce Cost on Partial Ownership

  1. When you go for a second home, try to have partnership with your friends or your relations, in order to cut down your cost
  2. Get or lease your second homes at appropriate market prices, so that both the ends will be satisfied.
  3. The above all can assure you a trouble free holiday or living.

Tax Benefits

  1. When it comes to tax benefits, you can be benefited by leasing your home for 15 days in a year. In such cases taxes on rental income is not required.
  2. If your home is leased out for more than 15 days in a year, then the rental income is accountable. In such situations, you can deduct your expenditures on maintenance, renovation and repairs.

Keeping all these facts in mind, explore wisely and choose the best out of it for a second home which caters you with seamless profits for lifetime.

Want To Buy A Plot And Construct Your Home? Bank Is At Your Disposal

We know that when you want to buy your home, you apply for a loan in the bank, but if someone wants to buy a land and then construct a home, will the bank offer loan? The answer is, yes, of course, mostly all the banks in India offer loans to people to buy a land as well as to construct their dream home. This loan can be availed by a salaried person, self-employed person and an NRI can apply for it.

Buy A Plot And Construct Your Home

What kind of land can be purchased?

People interested in buying an agricultural land, cannot avail a land loan. When we say land loan, it’s meant only to procure land for residential purpose. Some of the banks add few clauses like; the construction should begin within 6 months or the plot should be within municipal limits.

How is it different from home loan?

You cannot claim income tax deduction on interest paid on such loans. However, when you take a loan for construction purpose on the plot, you are eligible for a tax break, that is, you can claim tax benefits on both loan (land purchased and house construction). The tax deductions on these loans can be claimed in the year in which construction is completed and the completion certificate is submitted to the concerned authorities. The interest rate on a land loan is similar to what is charged on a home loan.

How much you have to pay as a down payment?

People opting for land loan have to pay a hefty down payment, it can be around 70% of your loan amount, but if you are applying for a home loan, then you just have to pay 20% of the cost of the property.

What are the documents that are needed?

  1. Layout drawing, approved by town planning authority
  2. Original documents, like, tax receipts, revenue receipts, etc
  3. Land ownership documents
  4. Land records
  5. NOC from society
  6. Transfer of land documents
  7. No encumbrance certificate

Please note, that you hire a lawyer to verify all the documents before proceeding.

Investing in a plot and constructing a house in it is a good decision, but the constraint is the cost of construction. Sometimes it may be expensive and take a longer time to complete also; it solely depends on your financial circumstances. The benefits of construction are: you can input your own creative ideas into it, the design, colour schemes, etc. Apart from that, you also have the choice of postponing major expenses, like expansion and renovations on a later date.