Investments and returns from holiday homes

How can the consumer get assured rental and tax benefits on rental income investment in holiday homes in India?

- Punit Agarwal

During the pandemic, the domain of holiday homes received a massive thrust as many buyers, caught between the conflict of the threatening viral wave and the peril of future contagion, started realising the inherent advantage of owning a holiday home. Alongside capital appreciation and rental income, the requisite of a safe home away from pandemic hotspots appears to have become an important consideration. Buyers today have understood the potential of the second homes market in India to lend profitable rental options and assured tax benefits on rental income investment. Currently, the total size of holiday homes by the end of 2021 amounted to Rs 1.394 billion. Second homes offering conducive, hygienic, and peaceful options for work and stay have been gradually gaining traction amongst consumers.

Let’s take a look at the factors which indicate that the second homes market along with being a safe investment bet for buyers, is also a remarkable option to earn guaranteed rentals.

Location is the key factor