A weekend home, also known as vacation home, is a second property a person invests in to create a passive source of income. It is generally situated in the outer areas of the city. Over the last few years, the trend to invest in shared weekend property has been on a rise as they involve a lower cost of ownership and higher chances of passive income distributed among the co-owners. In Rajasthan hospitality companies such as Ananta resorts, Sankalp Resort etc. are offering weekend homes/hotel suites and villas where you can invest and take advantage of passive income as well as holiday homes at the same time. In this post, we are discussing a few factors to be considered before investing in a weekend home.
- Watch out for the best location – Holiday home must be located in close proximity to the city so that you / guests can reach easily. The more convenient the location is, the more chances of it being occupied throughout the year, earning more bucks for you.
- Reputation of the developers – a background check of the builders will give you deep insight into the kind of service provided by over the years. A quick check with local property brokers shall also help you know in detail about the developers.
- Legal Compliances -Before investing in any weekend home make sure to visit the registrar’s office and inquire if the proposed home fulfills all legal formalities, the land title must be clean and under the name of the builders and there must be no legal complaint against the builders.
- Buy what you can afford – Nobody knows your financial status better than you. Consider all your liabilities, expenses and income before investing. Also, never go beyond your speculated investment amount as properties offer higher value and returns (of you invest more, obviously). Stick to your goals and final price.
- Research the viability – Weekend homes do generate passive income as they can be rented out to third parties or hotels provide a fixed return each year. However, this might be not true in each case for example in goa, weekend homes generate good income only from September to march and after that they struggle to provide income due to low inflow of tourists, similarly weekend homes in hilly areas struggle during winters and snowfall. Make sure to consider the income generating potential of the proposed property.
Bonus – never depend on passive income as it may wash out in coming years, consider weekend home as a leisure investment to spend quality time with your loved ones.
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Itís nearly impossible to find well-informed people for this topic, but you seem like you know what youíre talking about! Thanks