Second Home Investment: Top Reasons to
Buy a Resort Property
Buying a resort home can be a great second home investment for you to enjoy vacations and make some extra money. These homes are usually located in beautiful places like beaches or mountains, making them perfect for relaxing as well as rental income.
As per a Statista study, India’s vacation rental market is expected to make about $2.12 billion by the end of 2024. This market will grow by 8.72% each year, reaching $3.22 billion by 2029. With vacation rentals getting more popular, buying a second home property can be a smart choice.
In this blog, we’ll look at the main reasons to buy a resort property and what to consider before investing.
Surging Interest for Second Home Investment
The need for vacation homes, especially resort properties, has increased a lot lately. A report shows that the vacation rental market was worth $99.6 billion in 2023 and will grow by over 3% each year until 2032. This shows that people want second homes near Mumbai and other developed areas.
10 Reasons to Invest in a Resort Property
Here are some reasons to invest in a resort property:
1. Good Return on Investment (ROI)
One of the biggest benefits of a second home investment is the chance for high returns. These properties are in popular tourist spots, so they can rent for good prices. As per Financial Express, investors can expect yearly returns between 8% and 20%, depending on the location and season. Resort properties also usually increase in value over time, giving you rental income and long-term gains. This means you can earn money while enjoying your home.
2. Spread Your Risk
You can distribute risks with the help of second home investments. By introducing real estate to your investment mix, you balance out your portfolio. Unlike stocks and bonds, real estate in holiday home projects near Mumbai and other prime locations stays steady and doesn’t crash.
What this means is your money is safer during the tough times – if the stock market goes down, your returns from your second home investment may still do well. This helps protect your overall investments.
3. Stable Source of Income
Owning a second home gives a steady income. Resort vacation homes in high-demand locations often generate consistent rental income. Resort properties are very safe long-term investments; the value of most resort properties tends to remain or appreciate. If you want stability in your finances, then this is a good choice, as you can rely on its ability to produce income year in and year out.
4. Personal Use
Buying a second home as an investment property means you also get to be a vacation homeowner. No more stress about finding where to stay during the busy holiday seasons. You can now enjoy that quick trip with friends and family, making the most of the memories, knowing you won't be worrying about hotel bookings. Relax in a familiar space anytime.
5. Resort Lifestyle
Resort properties come with luxurious features, like pools and private beaches. These can help you earn more from rentals and improve your lifestyle. You can also host special events and enjoy nice amenities. The best places to own a second home offer a blend of relaxation and financial benefits. Whether it’s a pool party or a family gathering, your resort home can be the perfect spot.
6. Property Management Support
One major second home investment benefit is the availability of property management services. There is a lot of work that goes into running a rental property, but most resorts have management services that can help take care of everything from bookings to maintenance. You can enjoy rental income without hassle. This is great for investors who want a hassle-free second home investment. You will also not have to worry about finding tenants or fixing issues.
7. Easy to Access
Most resort properties are located in areas with strong transport connections. A second home near Mumbai, for example, offers convenient access for both personal use and renters. This makes it an attractive investment with strong rental income potential.
8. Tax Benefits
Owning a second home can offer tax benefits. If you take a second home loan for investment property, you may be able to deduct mortgage interest and property maintenance expenses. It’s important to talk to a tax expert to understand how these benefits apply to you. These savings can make owning a resort property even better.
9. Build Equity
With each pay-off on the mortgage of your vacation home property, you are creating equity. Equity is that portion of the property that you fully own. This can be a very good asset. When you eventually decide to sell the property, you will enjoy added value from it. This also provides you with increased financial flexibility later on.
10. Community and Friends
In most resorts, there is usually a club or activities to join. This is helpful for you to befriend people and make new friends. Owning a second home in a resort community can make your vacation even better.
Read blog - Why Investing in a Second Home is a Smart Financial Move
Final Takeaway
Buying a second home as an investment property can bring many benefits, like good returns and personal enjoyment. As the vacation rental market grows, investing in a resort home is a great way to mix leisure and fun with financial gain.
However, it's important to evaluate factors like location, financial planning, and market trends before making a decision. A well-researched second home investment can serve as both a cherished vacation home and a profitable asset.
Whether you are looking for a second home for rental income in Maharashtra or seeking the best places to own a second home, a resort property can be an excellent addition to your portfolio. With the right approach, it can bring joy and financial gains for years to come.
