There are clearly many advantages to owning a second home. When people think of owning a second home, it’s mostly as a holiday home or a vacation home for weekends. However, there are various advantages even from an economic perspective. With the rising value of real estate over the past years, an investment in a second home is an ideal way to solidify financial security and increase one’s equity.
Here, are a few benefits of Owning a second home:
- SOLIDIFY FINANCIAL SECURITY
A home solidifies one’s financial security by increasing overall security. Not only does it give you financial security, but it also gives a person a chance to recover debt. When a person owns a second home, he/she can give the home out on rent. This will ensure that the real estate investor can easily earn an income by renting the property. This will in turn help the investor to generate a welcome influx of funds. Thus, owning a second home is an easy way to flesh out one’s real estate investment and solidify overall financial security.
- ENJOY A FAVORABLE TAX BENEFIT
There are a variety of tax benefits that a person can enjoy when they own a second home. While sector 80G provides tax savings on the principal amount, there are also various other benefits that the investor enjoys as tax redemption. Section 24B offers tax reductions on home loan interest rates that were disbursed to service the home loan. Until a few years ago, tax benefits were only available while purchasing the first home. However, since 2019 these tax benefits have been extended to the second home owners.
- ENJOY A HOME POST-RETIREMENT
Another great advantage of buying a second home is that it will help you to arrive at a comfortable financial situation post-retirement. The home that is not being used as a primary residence can be a great source of passive income for homeowners. This amount that one receives can be a great source of income post-retirement and can see a potential rise in the same with the rise in the real estate sector.
- A GETAWAY HOME
A getaway home offers homeowners the advantage of taking off on weekends or on short holidays without worrying about paying high rental rates. One has the liberty to choose how long to stay in the holiday home and which family and friends to host.
Owning a second home therefore comes with a lot of advantages. It is a risk-free investment that allows you to enjoy stable financial security, expand your real estate investment portfolio, and build wealth post-retirement. However, one has to also know that owning a second home comes with its share of responsibility. The real estate investor should only think of owning a second home when he/she is sure of their financial security and are certain to shoulder the responsibility of owning a second home and enjoy its many benefits.