The Long-Term Benefits of Investing in Resort Homes

Date:06 Sept 24
Long-Term Benefits of Investing in Resort Homes

The Indian real estate market is expected to grow at a CAGR (Compound Annual Growth Rate) of 10.46% till 2047. This highlights how real estate investment has undoubtedly become one of the most preferred long-term investment options, both from a return and risk perspective. When we speak of the benefits of real estate investment,investing in resort homes has become an increasingly attractive option. The resort home concept has garnered the attention of people from Pune and Mumbai due to its proximity to local tourist destinations like Alibaug, Lonavala, Karjat,Dapoli, etc.

Acquiring a resort home property has also gained popularity for those seeking lifestyle improvement while ensuring a source of passive income. The availability of high-quality and luxurious projects like 21 Enclave has made purchasing a resort home property easier than ever. Situated in the beautiful Sahaydri mountain ranges in Karjat, the 21 Enclave by Pushpam Infra is a meticulously maintained property hidden within a 22-acre picturesque landscape.

In this regard, let’s explore the multiple benefits of investing in such resort homes.

Benefits of Investing in Resort Homes in India

Benefits of Investing in Resort Homes

1. High returns

High return on investment is one of the most notable benefits of investing in resort homes. Resort home properties are profitable and can yield returns of up to 20% annually. However, these returns primarily depend on various factors and can change based on the area, property management, location, etc. Locations near Mumbai and Pune attract more investors due to their natural beauty and proximity to major cities.

2. Steady Rental Income and Recurring Revenue Stream

Resort homes offer excellent occupancy rates compared to regular properties due to their ideal locations and on-site facilities. Hence, investing in resort homes can help supplement your primary income and provide a safety net to push through unprecedented times.

3. Appreciation of Capital

One of the best benefits of investing in resort homes is value appreciation. Real estate investments appreciate over time, particularly for resort homes. Vacation rental properties that are well-managed and located in ideal tourist locations draw more investments. Moreover, the potential for capital growth on your resort home investments increases with the demand for vacation rentals. With tourism in high demand due to rising incomes, more Indians are now opting to travel and stay in resorts for leisure and enjoyment.

4. Hedge Against Inflation

While traditional investments may lose purchasing value due to inflation, resort properties are material possessions that often maintain or even increase in value during inflationary times. This offers a robust inflation hedge, guaranteeing the long-term value of your investment.

5. Tax Benefits

Investing in resort homes can offer multiple tax benefits. Depending on your region and tax situation, you can write off costs related to the upkeep of the property, like mortgage interest, property taxes, and insurance. You can also avail depreciation benefits on the built-up area to maximise your return on investment.

6. Low Maintenance, Hassle-free Ownership

Resort properties, as opposed to regular holiday rentals, usually include on-site management services. As a result, you won't need to bother about routine maintenance, vetting potential tenants, or managing vacancies. The resort staff takes care of everything so you can enjoy ownership without worrying.

7. Complimentary Leisure, Work, and Vacation

Purchasing a vacation house is an investment that's not just about making money but also about making lifelong memories. As the owner, you can access several features like spas, fitness centres, swimming pools, and entertainment options whenever you'd like. It provides a refuge for rest and renewal and serves as your private getaway from the bustle of city life. Another benefit of investing in resort homes is the prospect of workcations. As remote work opportunities increase, resort residences provide a unique advantage. By providing a change of environment that boosts concentration and creativity, you can turn your getaway into a productive workcation location.

8. Valuable Assets for Future Generations

You can create a loving family heirloom by investing in resort homes and vacation rental properties. It's a location where families can come together, make priceless memories, and enjoy the happiness of vacationing together. When you invest in a high-quality resort property, you're leaving a legacy for your loved ones and safeguarding your financial future.

9. Contribution to Sustainable Tourism

Purchasing a vacation house can also promote sustainable tourism, which is increasingly vital in the modern world. Nowadays, resorts nestled in secluded destinations are benefitting from the immense potential of social gatherings, destination weddings, and corporate events. By investing in properties that support sustainable development, tourism, and eco-friendly practices, you can ensure a healthy financial investment and aid in preserving the local community and environment.

Final Takeaway

There are many long-term benefits of investing in resort homes and other vacation rental properties. While the financial benefits include exemption on taxes, capital growth, and high returns, the qualitative aspects of investing in resort homes are complimentary vacation and workcation, to name a few.

Resort villas in Mumbai and Pune present a distinctive chance for high-net-worth individuals to broaden their investment portfolio, earn rental income, and relish an opulent private haven.

If you are looking for a safe and profitable real estate investment, consider investing in resort homes because of their consistent property value appreciation, tax benefits, and the extra convenience of professional management services. At the same time, picking the correct site and working with a reliable developer is essential. At Pushpam Infra, we are aware of the demands of discriminating investors. This is why we provide a carefully chosen range of well-planned resort homes at 21 Enclave, guaranteeing a profitable investment.

Yes, I want to Invest In Resort Homes

FAQs

1. Is property investment the best option for long-term investors?

In India, real estate investments offer long-term benefits and excellent returns due to pierce appreciation and overall stability of the market. Moreover, it also acts as a safe, tangible asset, unlike equity and debt instruments that tend to fluctuate rapidly based on market conditions.

2. Are resorts profitable in India?

Yes. Resort home investments are profitable in India, especially in booming tourist and scenic locations near Pune and Mumbai. Increasing demand for staycations and leisure destinations has been fueling the development of urban resorts, making them a profitable option for investors.

3.How much can property investors make?

India’s real estate sector is expected to expand US$ 5.8 trillion by 2047, contributing 15.5% to the GDP from an existing share of 7.3%. This highlights the demand of properties among investors who deem properties as sources of passive income.

4. Are second home investments such as villas and resorts profitable investment?

Yes, investing in resort homes can be profitable if you opt for a property in the right location. Consider investing in areas with high tourist traffic, good accessibility, and demand for homestays, and you can generate rental returns of around 10-12% on an annual basis.

5.Are there any benefits to having a vacation home?

Apart from an investment perspective, having a vacation home means having a second home with all the comfort, flexibility, and freedom you need. Such homes are an excellent choice who want to have an entire property to themselves, in the privacy of scenic surroundings. When not utilised, vacation homes can act as rental properties for a passive source of income.

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