8 Things to Remember While Buying Second Home

Last Updated : March 17, 2017, 12:52 p.m.

The demand and urge to buy a second home is not fading among people who can afford it. Second home is the best option even with the point of investment also. If you have extra money and enough funds, so use your funds to buy a new property/second property. Besides, the slowdown in the market and despite the ups and downs in real-estate market, still people are keen to invest their money in this sector. This sector is still attracting large number of people every year. Different people have different set of ideas and opinions about owning the second home. Owning a second home offers you many advantages and benefits whether you are going to buy a two room BHK or a lavish apartment. Investing in any kind of property, which is authorised and is at a good location is always an advantage for you. Here are some smart tips to remember while buying your second home.

1. Don't make buying decision in a hurry: Buying a home is not one day's decision or a decision, which you should take in a hurry. In case, you can afford to buy the second home still you should not make a decision without comparing the different options. Buy a home that is very much within your reach and fits into your needs.
2. Know your requirements first: You should know your requirement first before buying your second home. Choose a home, which suits your lifestyle and requirements. In case you are buying a home with purpose of renting or just for investment, search a property which suits you most. If you want to buy a second home in other city with the purpose of holidaying or with second spot for relaxation , search for similar kind of location that fits into your requirements. If you want to stay there post-retirement look for health and other facilities in the area before buying the property.
3. Find out more about the area before buying: Before buying the property, take out some time to know more about the locality and area. Visit the location on weekends to find out more about the locality and people. In case, if you have visited the place earlier, try to speak to some locals and people in neighbourhood to gather more information about the issues and facilities related to the location.
4. Speak to local real-estate agent: If you are not familiar with the area and don't have enough information about the locality, so hire a good local real-estate agent to find the most suitable property. It will make your search faster and easy and you will be able to find the right property within your budget. He must be more familiar with the location and other aspects. therefore, he will be able to guide you better and help in finalising the best property as per your requirements.
5. What kind of property you need? While buying the property take some time to make the decision what kind of property you want to buy. You want to buy an apartment, 2-3BHK or one room flat with enough space. Think about how much time and money you can spend on maintenance of that property once you own that. How many times you are going to visit that property in a year? Are you buying the property for renting purpose? So it is really important to know your needs first before investing the money.
6. Look for most suitable loan: Once you finalise the property, the next step is to look for the most suitable home loan. As you are buying the home for the second time, so you are very much aware of the terms and conditions and other complexities of the loan. Therefore, you have an advantage of your past experience, so you can negotiate well with the bank and ask for more benefits and better terms from bank on your home loan.
7. Calculate other expenses as well: Buying a home is not just about making payment for the property, besides, there are other charges as well. The registration fee, real-estate agent commission/fee, lawyers' fee, documentation charges, repair/renovation if required. Calculate all these expenses forehand, so you can estimate your overall budget accordingly.
8. Look for rental income: If you are buying the home with main idea of renting only, so try to find out the rental rates in the area. If the rental rates in the area are standard and you will get good returns in your investment, then it is a good idea to invest your money. But, if the rental rate are not as good as you are expecting, so search for some other location that can fetch you desired returns on your investment.