Investment trend — 2nd Homes
While millions of Indians are struggling to find a roof above their heads, there exists a class of people who have enough disposable wealth are willing to upgrade their lives, to buy 2nd home, or a holiday home — to bring in more balance, perhaps an escape, or a move to tranquility.
Topping the list is Goa, Himalayas, Coorg, Shimla, Kasauli, Mashorba, Lonavala, and Nilgiris.
What motivates people to buy a 2nd home — better road connectivity. And, incase of Goa, its a state with great air connectivity, which draws crowds of tourists, and expats who are willing to spend their days as “digital nomads”.
And, there are people who have turned their 2nd homes into workplaces for convenience and peace of mind.
HNIs can treat their 2nd homes as a strategic addition to their investment and overall real estate portfolio. Perhaps a good 25%.
For example in Goa — 2nd home market is not dominated by traditional HNIs, but a distinct segment of people in their 30s to 50s, mostly founders, tech entrepreneurs, business owners and NRIs with a global mindset.
The new age GenZ don’t bother about clubhouses, but prefer questions on natural light, if there’s a verandah to sit in silence! And in today’s market the quietest homes are the truest definition of luxury.
With right mix of legal due diligence, long term planning and importance of location, a 2nd home can make an difference in value in a person’s financial return specifically those who plan on the long term.
Liquidity, maintenance and regulatory considerations must be carefully evaluated. Planning and community dynamics play on the long term.
When chosen wisely 2nd homes can serve both personal and as a lifestyle asset for investment goals, and just not simply as a retreat!
Investment trend — 2nd Homes was originally published in MadrasRealty on Medium, where people are continuing the conversation by highlighting and responding to this story.