Long-term investors can benefit from investments in property such as a residential or commercial building, or land. Property investors must bear in mind that property as an investment requires adequate time to buy and sell.
Ample amenities, increased choices, improved construction quality and competitive rates make a second house a lucrative asset class that can provide a predictable income stream along with capital appreciation. Rental income from the second property can help repay a substantial part of the monthly EMIs. If your salary has increased since you took your first home loan or have already repaid your home loan debt, procuring a second loan may not be difficult.
A second house is an ideal investment option for a person with larger disposable income and lesser debts. If you invest early in a second house, you can repay the debt sooner. This enables you to set aside a larger amount towards your retirement savings much earlier in your working years.
Otherwise, a large chunk of your earning is diverted towards repaying debts, leaving very little disposable income for savings, healthcare, contingencies and retirement planning.
Increasing urbanisation, job opportunities and population growth have stretched demand for housing beyond imagination. A second house might appear to be a lucrative investment. The buyer must remember that he must commit extra time towards his second house too.
Managing another property that is in the same locality may be ideal. A second home is an ideal investment in these times of lenient lending rates and increased competition among builders.
Source : ET
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