Today you can buy a holiday home in a scenic setting and earn rentals and high returns. This is because most of the holiday homes are situated in areas that have high aspirational value and thus appropriate resale value and owning such a home in hills or on the beach is considered as the matter of pride and prestige, according to Raminder Grover, CEO-Homebay Residential, Jones Lang LaSalle Meghraj (JLLM).
As per JLLM, areas like Goa, Pune, Alibagh, Khandala, Lonavala and hill stations like Dehradun, Mussoorie, Ooty and Shimla are very popular amongst holiday home buyers. To cater to these buyers, today real estate developers are constructing resort apartments and providing unique value propositions to vendors in terms of guaranteed returns. Here is how it works: a purchaser can stay on the property for some time and for the remainder part of the year, the resort is rented out to others.
The benefit to the buyer is that he earns a portion of the rent as income towards the month end. Moreover the maintenance cost of the property is also not borne by the buyer. The returns generated from this type of investment is around 4-5%. However it is important to invest carefully as quality of local infrastructure and guarantee of security are very important factors.
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