The new millennium has bad to bonds, stocks, mutual funds along with other financial investments. Most investors have discovered that the best performing asset in their portfolio is their home. Real estate continues to be a safe haven for investors with appreciation far outpacing other opportunities. With growing worth of residential real estate and the security, an increasing number of property owner are now purchasing another home. There are broad assortments numerous reasons why individuals purchase second homes or assembled. City dwellers may prefer a home in the state for vacations and weekends. Northern may need a home in the sunshine where they can golf all year round; Southerners may prefer a house in the mountains close to a skiing resort.
A lot of Baby Boomers are building second houses expecting it’s going to become their primary home and are eyeing retirement. The main reason behind owning another home is lifestyle, yet, the investment factor comes in a strong second position. There are numerous reasons why owning another home makes great fiscal sense.
First, the appreciation of holiday residential property is anticipated to continue to grow into the future for several years. The shifting demographics are an excellent predictor that second home possession may continue to be strong for the foreseeable future. Baby Boomers reaching retirement age have more wealth than any preceding generation and studies show that possession of the home that is second consistently rates in the top a couple of priorities for this group. Additionally, there are tax advantages to home ownership that is second. Mortgage interest is deductible for second and first houses making home ownership among the greatest investments that are leveraged.
Any gain on the sell of another home is subject to capital gains, or in addition to this, if you reside there for at least two years and move into your second home, you can prevent any tax on the sell of the property. With high speed Internet and cell phones, running business in a place that is distant has become a standard event. Being in the office full time just isn’t as significant as it enables many executives and supervisors and once was the luxury of utilizing their second home more often than once was not impossible. Real estate is definitely a safe investment. With an increasing number numerous reasons why home ownership that is second makes sense, the interest in places that are great and quality houses will increase. It’s anticipated as two automobiles are now for most family that second home property may be as common in the future. Investment in a home that is second now will surely be viewed as a sensible choice in the future.
RealKonnect is a real estate portal that operates in Mumbai. Our objective is to help our prospects/clients find the dream property in Mumbai.This author has published 12 articles so far.