Buying a second home? Here is a step-by-step guide

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Also Read: Real Estate: How can you maximise wealth with MSM REITs investments? Why are you interested in purchasing a second home? Is it for a vacation getaway, an investment property, a place to retire, or some other reason? This decision will greatly influence where you choose to buy, what type of property you choose, and how much you can afford. According to a research study conducted by 360 Realtors, the demand for second homes or holiday homes in India has significantly increased in the wake of the pandemic.

The total value of holiday homes in the country reached a staggering $1.394 billion by the end of 2021, marking an impressive growth of 88.63% compared to the pre-COVID era in 2019. The report highlights that an increasing number of individuals are investing in second homes as an escape from the fast-paced city life.

However, make sure you conduct research on potential locations based on your desired lifestyle, property values, potential rental income (if applicable), proximity to family and friends, and ease of access. Also, compare property taxes, insurance costs, and any regulations that may apply to different areas.

Also Read: Are real estate investors keen on fractional real estate? 3 experts share insights Ensuring the stability of your financial foundation is crucial before taking on such a responsibility, especially if you already have outstanding debt.

Before you think about getting another mortgage, it's important to focus on paying off any high-interest debt you may have. To determine your debt-to-income ratio, divide your total monthly debt payments by your gross monthly income.