People owning second houses on the rise

Some are eyeing a second home for rental income.
Make efforts to buy homes in upmarket commercial areas.
Owning a roof over one’s head is a long-cherished dream for many. People try to acquire their own house even by disposing of other property. However, people owning houses have been looking for a second home with a view to earning a stable rental income. This trend was significantly noticeable in cities like Hyderabad and Bangalore. As the houses in commercial areas return impressive rental income, people have been looking to own a second home in commercial areas.

In fact, the real estate market has been proceeding in a slow lane for the past several months. Increases in lending rates on house loans, elections, and increases in the prices of properties have affected the real estate sector, leading it to register slow growth.

Despite it, the demand for rental homes did not register a decrease. The houses in the Hitec City area of Hyderabad have been fetching rental returns varying between Rs 30,000 and Rs 50,000 per month. Depending on the amenities offered, the monthly rental returns may go up to Rs 1 lakh to Rs 1.5 lakh. A 2BHK house in some other areas of Hyderabad fetches rental returns between Rs 12,000 and Rs 20,000 a month. Therefore, many prefer to own a house in high-rental-income areas of Hitec City.

Earlier, people used to prefer buying house sites. Today, the demand for units in gated communities and apartment complexes is on the rise. Under good rental income returns, people prefer to buy houses rather than house sites. People prefer to acquire a second home, going by the stable rental income returns per month and also considering the tax benefits they would get.