It is no longer just a fashion
statement to own a second home. There are many changes within society that have
added to the need of a second home. Advanced communication technology, double income
families, early retirement plans for the upcoming middle class.
Having said that, any real
estate investment comes with key criteria to evaluate. However keep in mind the
basic reality, the fundamentals of evaluation for any residential investment remains
the same. When a residence be it primary/secondary or second homes there will
always be certain basic rules that remain constant the evaluation under each
may differ but the overall thumb rule of the important factors will hold good
across residential projects. The most important criteria for a second home will
be location.
For one’s primary residences the most important location criteria are
1.
Accessibility to the frequented areas e.g. work
place, child schools.
2.
Proximity to transport-e.g. train station, other
public transport etc.
3.
Security at night.
4.
Proximity to entertainment sites like malls or
restaurants.
5.
How residential is the location ?
6.
Infrastructure development – road ways and
access to arterial roads.
For a second home the most important location criteria are
1. Proximity to city or place of primary
residences. The highest preference is for drivable distances not exceed 4
hours.
2. Surroundings in terms of isolated locations are
not the best options, being closer to other complexes is always recommended.
3.
Views from the project.
4.
Infrastructure development in the location
current and proposed.
5.
Security during non-occupation.
6.
Accessibility to the main city centre/market.
7.
Availability of staff in surrounding areas.
There are some basics one should consider that sometimes get overlooked
1. A second home size is always to be looked at
from a point of view, with ease of maintenance. This can if not planned out
well can become a daunting task in the long run.
2. While planning your purchase keep in mind the
running cost of your second home. Budget for it. This could be in the form of a
caretaker or a monthly cleaning expense etc.
3. Buy something where also if currently not
intended will have a good resale market. With uncertain times it is always
advisable to invest in second homes that have potential of a consistent if not
very strong capital appreciation.
4. It is great to have a second home in great
locations closer to the sea or surrounded by a lot of greenery. However please
also note this can create additional challenges of over humid environment or
significant insect issues you may not want to deal with.
5. Thinking of a second home has to be with
planning in terms of ability to enjoy nature but also things that one can do.
Therefore become around activity areas that allow you to indulge in some
entertainment is important.
With modern times everybody enjoys being cut out
once in while from communication, however if that is a rule and not an
exception think again. Mobile connections, internet access and television etc.
are important aspects to check on before putting your money down.
