What are the Tax benefits for Buying a Second Home?

Amol Jadhav says, “ I am happy to have chosen Hinjawadi for my second home investment.” He confirms that this decision was taken after a discussion with his friend Sumit who has already invested in a second home in Hinjawadi. There are several others like Amol and Sumit who are already realizing the benefits of buying a second home in Hinjawadi. Now, after reading this you may think about how buying a second home can be beneficial? Can I enjoy tax benefits on a second home, too? Why is Hinjawadi is the best location for the second investment? Stay tuned to know more. 

A Second Home is an Investment for a Long Term

Buying a second home always means extra income in the form of rentals or appreciation while selling it. You can also use this home as a vacation rental if you are investing in a hill station or a beachside property. Research by Makaan.com says that buying a second home will provide you with better returns than any other forms of investment such as equities, mutual funds, fixed deposits, or gold.

What are the Tax benefits for Buying a Second Home

You are eligible for Tax Benefits on the Second Home, Too

The budget of 2019 in India addresses the taxpayers who have two self-owned properties. This is particularly beneficial for taxpayers, who may own two homes – one in their native place and one in the city where they work. The budget suggests that a taxpayer can claim these two properties as self-occupied, however, the exemption would continue to be Rs two lakhs each for these properties. If you have let out one property and claim the other as self-occupied then you are eligible to receive a tax exemption of up to Rs two lakhs for the self-occupied property, and an exemption for the amount that is paid towards the interest on the second property that is let out. This will clearly help you save on taxes, and build assets for the future.

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Hinjawadi – Why it is the Best Option for Your Second Home

  • Hinjawadi has been in news since the establishment of Rajiv Gandhi Infotech Park in 1998. This IT park is spread across 2800 acres and neatly divided into three phases – Phase I, II, and III.
  • Hinjawadi is a preferred address for IT firms such as Cognizant, Infosys, TCS, IBM, Wipro, and so on. These multinational corporations have given a major facelift to this suburb in terms of employment, and real estate boom. 
  • Hinjawadi is also home to several biotechnology and product-related companies, which has put the place on the map of one of the top employment zones in the country. 
  • The presence of big firms, the place attracts job seekers to Hinjawadi. Most of these job seekers come from other cities of Maharashtra or other parts of the country and they always prefer living near their workplaces. 
  • The place is well-connected to Pune city, and neighbouring cities of Mumbai through Pune-Mumbai Expressway, as well as Mumbai-Bangalore Highway. 
  • The Line 3 Metro that is expected to be functional in 2020 will connect it to Shivaji Nagar – the heart of Pune City. 
  • Inspired by the increasing demand for comfortable homes, many builders have come up with prestigious projects in the suburb. The good news is most of these housing projects are conveniently placed near the important places of work, such as Eon Homes in Hinjawadi Phase III, which is located within 500 meters from Tech Mahindra and TCS. 
  • Most housing projects in Hinjawadi are also opposite to theatres, shopping malls, and restaurants. 
  • The place also has access to good healthcare facilities and schools. 

Don’t you think these reasons are enough to consider for a second home investment at Hinjawadi? If yes, perhaps, you may also have news to share with the world like Amol Jadhav who took the right decision at the right time.

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