Wednesday, June 8, 2011

Second Homes as an ideal Investment Option for home buyers

Some things are too good to be true, they say, If possible why not? Why is it too much to ask for to have the cake and eat it too? I am told that you can either be married or be happy! Likewise you can either have a second home or an investment! The later is as true as the former, depends on ones point of view I guess.As business can be mixed with pleasure, buying a second home can make investment sense if certain basic tenets of investing are followed and tailored to suit second homes. The basics of investment tell us that an investment should have the potential to grow in value. This potential comes out of the future prospects of the investment and its ability to change hands by attracting buyers at future prices or future valuations. It must hold the promise of growing in value over a period of time and be liquid enough to be able to convert to cash when one desires to do so. To make this happen a second home property must fit the following criteria;

•The area where a second home is located should show promise of development in the near future
•There should be good development in the second home scheme itself
•The property should be very well maintained in order for it to be able to attract attention of prospective future buyers
•The project should have good amenities and conveniences which can attract the interest of the buyer and make the investment worthwhile. Special emphasis is laid on recreational amenities, health related amenities and lifestyle.
•An attraction like a popular restaurant, spa, picnic spot, resort etc being part of the project is an ideal scenario. These attractions ensure foot falls in the project from outsiders, make businesses in the project viable and ensures that a resale market is created as there will be demand for properties for sure.
•The presence of such attractions also ensures that the second home project is well maintained, kept clean and attractive.
•This ensures that a resale market is created which ensures liquidity which makes the investment very lucrative and dynamic in ones portfolio.
The value addition in typical second home projects is very high, hence an investment made in vary early stages of a second home project can have a phenomenal appreciation by the time the project comes to the end and later on as the attractions start kicking in the appreciation in investment improves many more fold.
Companies like Disha Direct believe in making second homes a lucrative investment option by;
•Choosing destinations that hold promise in the near future.
•Projects that are very well developed.
•Products are reasonably priced at all times to ensure that the investor benefits in the medium to long run.
•Development of attractions like Resort, Club & Spa are popularized, professionally run and attract a lot of foot fall in the project
•This ensures that the project is not dead, always alive and bustling
•Project is well maintained in the interest of the attractions and the surplus from the attractions in addition to the maintenance charges are well spent to further a common goal.
Case in point being Talegaon, here the value of land and constructed property showed a 400% increase in 4 years time (2004-2008). The development at Talegaon ensured that this was possible and Disha Directs foresight which promoted Talegaon as a destination paid off for the investors. Likewise opportunities at Kasara, Wada, Karjat and other such destinations have returned more than 300% returns over the years.
Mr. Sameer Dange an investor at Talegaon regrets that he should have increased his value for investment as the phenomenal returns that he has enjoyed was unbelievable. Likewise Mrs.Shinde an investor in Wada has seen her investment grow from Rs.100/- per sq.ft. of land to Rs.350/- per sq.ft. over 3 years. Both these investors have an opportunity to for resale thus giving them the chance to cash their investments.
So if one is looking for a second home as an investment option , look for names of repute who are developing the project, ensure that the project will be professionally maintained once its completed, an attraction which will draw people to it regularly is a must as it creates liquidity for future sale and lastly the area in which the project is located should hold the promise of development in the near future or should be ideally located for the specific attraction which otherwise cannot be located elsewhere. Second Homes can certainly be looked at as an option to diversify ones investment portfolio.




Posted: 07 Jun 2011 04:54 AM PDT

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