Before You Buy That Dream Holiday Home..

By Author: Shyam Kumar
Total Articles: 7
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Many of us dream about the tiny home to dwell which should be away from the audience and gang of people – a home which is different from the busy metro life of the cities. House which can be called as a holiday home and take couple of hours to drive from the city to reach the peaceful home as our holiday home. Toady, most of us are in search of such kind of so called property term as our dream home or a holiday home to dwell peacefully. Real estate property prices are rising to a high scale of peak. In such it’s difficult for a common layman to buy a property or his own holiday home.

Experts says that the upcoming generations prefers a break down from their hectic schedule of day to day activities and demands need of break in their routine work flow. Hence they plan to acquire a property in name of a holiday home or a farm house or adventure purpose or for picnic outdoor purpose. Its very important that that before you plan to book as dream holiday home you keep in mind some good and bad effects for the same. If it is not considered you can indulge yourself into ...
... a scam and its difficult to cope with it, since buying a property that too a holiday villa is an very rich an expensive affair.

Points to remember before you buy that dream holiday home:

Buying a holiday home or a dream villa is favorable for the class of people those who have excess of funds and capital to do investments into real estate properties. It is advisory to the middle class to remain scatter or away to think to invest in such holiday villas as it could relate to be an expensive offense for them. They can plan to buy a resale property or a second hand home to dwell.

One of the major factors to consider is the distance between the holiday home or the place of your residence should be very minimal. Aditya Verma expert from Makaan.com says, "Holiday home or a farm house should always be within a short distance of travel from the place of your residency. So that, you can avoid of advanced travel planning or ticketing to reach the desired location" Indirectly it will help you to save traveling expenses. In same manner, you can keep maintaining or visiting your resident apartment also in an interval period of time. Always keep in your mind there is always a growth in the property sector, the pace you buy as Holiday Home can have potential grow.

Now you will think, how can you detect if a property has potential to grow? So here is the answer for your query, "Pre - Planned or maintained infrastructure with amenities and development projects leads to growth for future appreciation of a real estate property which can be a very huge and important consideration. Holiday Homes can be a huge investment. It will be a good investment if it is bought in a location where there are chances of greater appreciations. Asset like a bungalow or an apartment within a location gives appreciation of growing price and loan approvals becomes easier and faster in comparison to a normal location pertaining a very narrow security."

Other day to day related facilities should also be kept in mind while selecting your holiday home. Their should be existence of daily essential groceries, commodities, other necessary household stuffs. Security and Labors for maintenance which are also considered to be the basic need of the individuals. Last but not the least presence of healthcare, gymnasium, and place for outdoor sports activities.

Apart of being a luxurious symbol holiday homes can also act as an income source for you. For example, appoint a property agent and try to lease your property for parties or functions, in your absence or when you don’t have plans to visit your farm house. "As a farm house or a holiday home remains unused for a long period of time, it can be lead on rental basis and earn income by renting the property. Funds or income received from leasing such properties can be efficiently used for maintenance costs.

Holiday homes are also liable for property tax so don't be under wrong impression that there would be no existence of taxation policy. It is taxable as per law, provided the fact that a holiday villa is an alternative second home property for dwelling and it is not let out on rent or lease basis. Where as rent from such home property would be considered to the income of the joint owner as per the ratio in ownership of so called property. However as per Income Tax Act, 1961 you can claim deductions for the same, says property taxation expert Manoj Varma. He also added, further in conversation that interest charged in the year of loan acquired for building, purchasing, repairing or reconstruction of such a property of holiday home is allowed a standard deduction of 30% of leasing and is reduced in real estate property taxes to the owner or joint owners of the holiday homes.

Repayment of principal amount of loan taken for purchasing /construction of holiday home is also eligible for deductions. Short term capital gains exist if your sell your property with in 3 years of purchase. However if you sell out the property after 3 years you are liable for long term capital gain, this short term and long term capital gains are also liable in case of your holiday homes. So if you are planning to sell out, think properly about property tax before you plan to sell out your dream home.