Last year, we bought a vacation rental home in Pune, and there were a few things we had to go through before buying the property. First of all, you should understand the legal formalities and conduct proper due diligence before purchasing the property, even if you’re renting it. This should include title verification, RERA registration, and so on. Let me tell you what to know before buying a vacation rental property in India.
5 Things to Know Before Purchasing a Vacation Rental Property in India
First, you need to understand the local regulations because I have heard some cities have strict zoning laws while others may have a ban on vacation rentals. If you have a particular city in mind, make sure you are thoroughly familiar with the local laws.
Now, let me get straight to the 5 things you should know before buying a vacation home on rent.
Budget: So, vacation rentals can be costly and there might be legal charges too. So make sure you set a budget that aligns with your financial goals.
Legal Formalities: This is something we weren’t completely sure of. So I believe it’s important to take professional legal help in such matters. We did the due diligence of the property through the
NoBroker Legal team, and I would advise you the same.
Rental Prospects: In case you’re thinking of renting out the property, you must look at the rental potential and factors like location, amenities, tourist influx, and so on.
Home Loans: If you require financial options to purchase vacation rental, you can opt for home loans but some banks have stricter eligibility to buy a second home. You can also take a loan against your existing property to cover the finances.
Tax Implications: If you have availed a loan, then you will be eligible for tax deductions on the interests. Some properties do apply wealth tax as well and if you rent out the property, there may be rental income taxation too, which you need to pay.
I think these are all the main pointers you should be aware of before purchasing a vacation rental in India.
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What to Know Before Buying a Vacation Rental Property?
Yashraaj
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9 months
2025-03-28T22:56:52+00:00 2025-04-01T11:25:21+00:00Comment
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