Is The Festive Season A Good Time To Buy A Second Home?

Be it a vacation home tucked away in the green suburbs or an investment tool to supplement your income, buying a second home is an important financial decision. Many homebuyers consider the festive season an auspicious occasion to invest in a second home, an asset with a high aspirational value. However, with the interest rates at a 15-year low and highly conducive market forces, one should not have to wait till the festive season to invest in the property of their dreams.

Here’s why one should invest in a second home right now.

Market outlook

The past decade has positively disrupted the residential real estate space. From accommodative policies by the government to customer-led incentives by developers, many factors have helped the housing segment witness unprecedented demand.

Some government-led measures include RERA, which has considerably increased the transparency between buyers and builders, lowered stamp duties in some states and attractive tax incentives. For instance, no notional rent is deducted from the taxable income for a second self-occupied property.

In parallel, rapid advancements in ConTech and PropTech have enabled builders to deliver on customer promises within accelerated timelines while offering superior quality projects. Today, developers provide a range of offerings to customers based on the latter’s needs and lifestyle aspirations. Hence, homebuyers are awarded an array of lucrative options to choose from.

Customer-oriented benefits

It is prudent to note that the housing sector is primarily end-user driven and geared to benefit customers. For instance, unlike popular belief, the provisions in RERA are directed towards protecting the homebuyers’ rights.

Recently, several reputable banks reduced their interest rates to less than 7%. The low-interest regime significantly minimises the financial strain of property investment. A few banks have also eliminated the occupation-linked premium while offering loans. This means that financial assistance is now accessible to a larger demographic of homebuyers looking to invest in their second home.


A residential property is an eternally appreciating asset if one has the right location locked in and has made associations with a trusted developer. Buying a second home has countless benefits- from being a source of steady rental income to enhancing the value of your investment portfolio. Unlike many investments, buying a home is typically a long cycle with multiple iterations and requires capital upfront. Hence, one must carefully chart out their financial goals and ensure that the capital for the second home does not impair these goals.

Before taking the leap, one must also have a clear objective associated with the property – is it a rental property, a vacation stay, or a space for retirement. Every objective comes with a distinct set of factors that the homebuyer might have to look into.

While the current market is highly conducive for a second-home investment, homebuyers must assess aforementioned factors before finalising their decision.

This article is contributed by Abhishek Kapoor, CEO, Puravankara Limited.

(The views expressed here are solely those of the author and do not necessarily represent or reflect the views of RoofandFloor)

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