Amidst today’s fast-paced world, where desires entwine with the pulse of innovation, holiday homes have gracefully metamorphosed from idyllic escapes to alluring investment ventures, painting a picture of modern-day sophistication and opportunity that captures the imagination with a captivating brushstroke.
The surge in interest surrounding holiday homes can be attributed to multiple factors that have contributed to its growing popularity. The increasing income levels among individuals have provided them with the means to consider holiday homes as a viable investment opportunity. With greater financial stability, people are now seeking ways to enhance their quality of life and leisure experiences. Additionally, there has been a notable shift in preferences towards quiet and peaceful locations, driven by the hectic pace of modern life. The allure of owning a tranquil retreat away from the chaos of cities has become increasingly appealing.
Moreover, the global pandemic has played a significant role in fuelling this interest, as it has prompted a renewed appreciation for personal space and a desire for safe, secluded getaways. Further, the depreciating value of the local currency, such as the rupee against the dollar, has made holiday homes in foreign countries more attractive for those seeking long-term investment prospects. Taken together, these factors have created a perfect storm of circumstances, leading to a growing interest in holiday homes as a means to achieve financial security, peace of mind, and a much-needed escape from the uncertainties of the world.
However, the appeal of holiday homes extends beyond personal enjoyment. Many investors recognise the potential for earning additional income by renting out their properties to tourists. This strategy allows them to leverage the tourism prospects of the investment location and capitalise on the demand for vacation rentals. The rise of platforms facilitating vacation home rentals has made it easier than ever for property owners to connect with potential guests and generate a steady stream of rental income.
Buying a holiday home in India as a non-resident Indian (NRI) is a popular choice for many individuals looking to invest in real estate and have a place to stay during their visits to the country. The growing prices of real estate and the depreciating value of the Rupee are further enabling the trend. Cash-rich non-resident Indians (NRIs), particularly from the Gulf region, are making notable shifts in their property investment strategies back home. According to industry insiders, a growing number of NRIs are now opting to invest in holiday homes or second homes for personal use as well as vacation rentals.
In response to this changing demand, developers in India have recently begun allocating dedicated inventories exclusively for NRIs in their high-end projects. This surge in demand from ex-pat Indians for luxury homes has prompted developers to offer amenities and facilities that meet global standards.
These developments signify a significant transformation in the preferences and investment choices of NRIs, who are now seeking both personal enjoyment and potential financial gains through holiday home investments.
Consequently, the market for holiday home rentals has experienced significant growth and become an attractive avenue for investors. The combination of personal value, convenience, and income generation potential has made holiday homes a sought-after investment choice in today’s real estate landscape.
Factors to consider-
Here are some important things to think about before buying a holiday home:
- Financial Goals: – Make sure your financial goals match up with buying a second home. Consider the potential return on investment (ROI) and how it fits into your financial plans. Don’t spend more than 30% of your income on the initial purchase.
- Choose the location well – Location is an important consideration for any real estate and it is true for a holiday home as well. Having a holiday home at a popular tourist destination is always a safe bet. Another criterion that you should keep in mind is that it should be easily accessible. Goa is one such state that homebuyers can consider. The state has a tropical climate, stunning beaches, vibrant culture, and a wide range of activities that make it appealing to both domestic and international tourists. It is also easily accessible by road, rail and airport.
- Income Potential – Holiday homes can also be a source of rental income. If you buy a second home in a popular tourist destination like Rishikesh, Mussoorie, Shimla, Nainital, Goa, or others, renting it out can earn extra money.
- Know About Taxes – Don’t assume that owning a holiday home means you get a tax break. Second homes have tax implications, and the amount you’ll pay in stamp duty and property registration charges can vary by state. Make sure you have a clear understanding of the taxes involved before buying a holiday home.
Vacation homes or holiday homes have great potential in India, especially because many wealthy individuals live here. These properties are now more accessible to a wider audience through fractional sale models operators offer. What used to be seen as just a luxury lifestyle choice has now become an investment opportunity.
The presence of organised operators in this field has led to better property options, improved management, and easier renting for short periods of time. This means that owners can not only enjoy their vacation homes but also earn money by renting them out when they’re not using them. Considering the exciting prospects and changes in the Indian vacation home market, it’s important to think carefully about these factors before buying one. By doing so, you can confidently make a smart decision that suits your financial goals and lifestyle desires.
Disclaimer
Views expressed above are the author’s own.
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