House Rent

Second Home

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Ways by which you can earn from your

Most banks offer land loans for NRIs if a construction is likely to take place there, ie, purchase plus construction loans. For example, if you buy land first, you will have to buy it from own funds. But as soon as the purchase is over and the new title deed is available, the bank will provide some funding to start the construction- like a refinance.

If an NRI approaching a bank for land purchase only, the application will not be considered, taking it as a non-residential purpose. This condition is not there for residents. The constant rise in property prices have made the rental market buzzing with activity. Many people today are satisfying themselves living in a rental property since they are unable to afford the increasing real estate prices.

The increase in the number of working professionals has also meant that rentals have been on a rise. This increase in rental trends offers a big money making opportunity for people having a second home. If you are one of those who has invested in the second home as an investment, getting some financial returns from the property is always beneficial compared to keeping the apartment empty and locked.

Let us look at various ways in which you can explore money making opportunity from all such second homes:

Home Rentals
A home rental is one of the best ways to ensure that the empty apartment yields revenue for the landlord. With most homes being given on rent after legal paperwork and agreements, the fear of tenants not vacating the property as it was the case earlier, has now become a thing of the past. Apartment owners can get decent rentals which they can use to repay any home loan EMI for the property or to use the funds for the maintenance of their second property without having to invest in the property from their own pocket.

Paying Guest Accommodation
Offering your apartment as a paying guest accommodation is a good idea for people with or without an additional property. A paying guest is a better option especially for senior citizens who live alone. Apart from offering financial benefits, a paying guest allows the senior citizens to be looked after in case of any medical or other emergency.

Service Apartments
An increase in the number of business travelers has resulted companies using service apartments for their staff coming to India for a few weeks to a few months rather than putting them up in hotels. Since staying in hotels for such long tenures is not financially viable, business travelers and corporates are using service apartments offering them the comforts of three to four star hotels at discounted prices. If your service apartment is located in a prominent area and within a good complex, the higher is the chance of getting a regular client. Apartment owners can tie up with various MNCs for being on their preferred list of service apartments.

Vacation Rentals
If you have a second property in a city or place which is a good tourist destination, offering your place up as a vacation rental property/home stay could be a good idea. Properties located in suburbs of cities, or offbeat locations close to cities are ideal for this.

Temporary Office Spaces
Many companies work out of temporary office spaces for various reasons. It may be for a limited period till the company settles in its own office in a new city or for testing business aspiration in a new area.Offering the apartment for a temporary office space can be a good idea for property owners to earn some extra money. The quantum of rentals for temporary office space will be on a daily / monthly basis. The chances of setting up the property as a temporary office space are higher if the property is located in a business park or closer to a business hub in the city.



Source :- The Asian Age

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