Kavitha Menon's Blog

K We all love the idea of home away from home. Away from the pollution and fast life of the city, a vacation home seems to be a perfectly romantic way to spend a weekend every now and then. But are they really good investments? To evaluate a vacation home as an investment option, consider the following Liquidity  - Vacation homes are tough to sell. The developer from whom you may be planning to or already purchased the apartment can use several marketing tools like advertising in national dailies, attractive brochures and events to market his homes. You on the other hand have no such resources except utilizing the services of a broker. Think in terms of future demand or rental demand and the investment prospect looks less rosy. Transportation  - A back breaking, nerve wreaking joyride is not something you would look forward to after a hard week at work .Your location needs to have good roads or other means of transportation like railways that will take you there without s...

First time property buyers face the dilemma of whether it would be more prudent for them to buy property or continue living on rent. Indeed it is cheaper to rent a house for a lesser amount than the EMI. You could invest this difference between the rent you pay and the EMI, let it grow and later on buy a house. On the link below is a calculator that allows you to compare the two options and see which one is beneficial for you. https://www.ppfas.com/research/ereports/week/110711/rent-vs-buy-calculator.xls . For most young couples buying a house will always be the better of the two options even if it means paying EMIs over long periods of time. The benefits of owning your home are -You are investing in a growing asset -Your income will eventually increase and accommodate the EMIs far more easily than they appear to in the beginning of the loan period -Finding new apartments to rent every two to three years is time consuming .The inconvenience caused to family specially when there...