THINGS TO KEEP IN MIND WHILE CON­SID­ER­ING A VA­CA­TION HOME

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE -

One spends only a lim­ited amount of time per year in a week­end home. Nev­er­the­less, peo­ple should re­mem­ber that there are reg­u­lar ex­penses to main­tain the prop­erty. If one does not wish to rent out the prop­erty, costs have to in­clude a care­taker’s ex­penses

If the prop­erty is to be rented out through the year, ex­penses have to in­clude reg­u­lar up­grades of ba­sic ameni­ties

The av­er­age rental po­ten­tial of such a prop­erty is 2% to 7% of its value. This might not be enough to cover one’s ex­penses to­wards pay­ing the mort­gage, if one is availed of, and the main­te­nance ex­penses

Week­end homes usu­ally higher rental rev­enue-gen­er­at­ing tourist ac­tiv­ity for only about 10-15 weeks a year. From a rental per­spec­tive, the rest of the year would yield noth­ing

Ap­pre­ci­a­tion will only hap­pen in case the town or city has round-the-year tourist foot­falls and ad­di­tional ac­tiv­ity of (and ca­pa­bil­i­ties for) sem­i­nars, con­fer­ences, spir­i­tual work­shops, etc. Only such kind of mar­ket fun­da­men­tals can en­sure ap­pre­cia­ble cap­i­tal value growth of a prop­erty, ac­cord­ing to JLL re­search

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.