“Over the years, real estate has proven to be the most profitable investment option. Unlike equity investment, investing in real estate is easy, less confusing, and yet beneficial in many ways. There is an immense demand for immovable properties, which helps the property owner or investor to gain profit from rentals and a market appreciation.
As an investment option, second homes mostly face some hesitation as this investment invites a fair amount of after-purchase expenses. These unavoidable expenses include housekeeping, maintenance, and security. These can weigh into the entry price and slice your pockets rather than providing a supplement to your profit.
From an investment point of view, second homes provide ROI in the form of capital appreciation of the property. To avail this profit, the property has to be held on for a certain time period until the balance of entry price and exit price becomes profitable.
During the waiting period of capital appreciation, the property is more likely to stay unused, excluding the occasional usage for the family weekends and vacations. In other words, the property will be vacant for the most part of the year, which can raise a concern of maintenance and security.
Any property that is not in use and not pulling in ROI is as good as dead property. In the case of second homes, the property stays vacant until it gains capital appreciation and until then the ROI can be gauged only in the form of its usability. There is a considerable time gap between the investment and the price appreciation, and to fill this gap, the concept of a Functional Real Estate took birth.
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