Is Buying a Second House Good for Investment?
Shiva is planning of buying a second house, so he was getting some advice from friends and his family members. He is earning a decent salary which includes performance along with bonus. Shiva has invested in mutual funds, fixed deposits and stock markets and he is comfortable with his financial goals.
So, he has a plan for buying a second house as a property investment now. Read How to Prepare Financially for a Second Home.
Shiva’s family members are having an idea of having a home near the mountains which should also be away from the city. One of his close friends suggested him to purchase an apartment in the city which would yield him better rental income. So let us discuss about what all things Shiva should think about before buying.
The most important thing for Shiva is to know for what purpose he is buying a second house. If his intention is to go with his family’s idea of having a holiday home for a weekend trip, the only way which they can get better returns is to leave it for occasional rent when the house is not in use.
A few years later he might feel very sad for selling the property which he bought and used for his family trip. So this choice would give more satisfaction instead of investment. Good investment plan is to buy a flat in korattur that can get you good rental income as the years pass by and will help you during retirement time.
At present, if his plan is to get a good return for his investment and his plan is to purchase and sell it later, then he has to choose the right area like an apartment in anna nagar cautiously. Another plan is to invest in real estate equity fund to have less risk so that he can buy the second one as a venture and sell it later.
Shiva can invest his money again in some other better ones to get a regular income after this retirement period. Finally, it is his choice to think better and choose an ideal one genuinely regarding risk and returns.