Investment In Vacation Home

Investment in Property vs. Vacation Homes: A Comparative Guide

Investing in property and vacation homes are two distinct approaches, each offering unique benefits and considerations. Balle Balle Properties presents a detailed comparison to help you make an informed decision.

Investment in Residential Property

Income Potential

Investing in residential or commercial properties can provide steady rental income through long-term leases. However, traditional property investments generally yield a low return of 1% to 3% per year, making some investors hesitant to pursue them.

Appreciation and Capital Gains

Real estate investments have the potential to appreciate in value over time. By choosing the right location and making strategic investment decisions, you can benefit from capital gains when selling the property.

Diversification

Real estate investments add diversification to an investment portfolio. They have a low correlation with stocks and bonds, helping mitigate risk and create a balanced investment strategy.

Tangible Asset

Property investments provide tangible assets that can be physically owned, appealing to investors who value control over their assets and opportunities for property improvements.

Investment in Vacation Homes

Personal Enjoyment & Prestige

A vacation home offers not just financial benefits but also a personal retreat. It serves as a dedicated space for vacations, weekend getaways, and family gatherings, making ownership a source of pride and lifestyle enhancement.

Rental Income Potential

When not in use, vacation homes can be rented out to tourists, generating significant rental income. Depending on location and demand, vacation rentals can yield returns of 6% to 15% per year, significantly higher than traditional real estate investments.

Potential Tax Benefits

Vacation homes, as residential properties, offer tax advantages. Home loan interest payments are eligible for deductions under Section 80EEA (up to Rs. 1.5 lakh) and Section 24(b) (up to Rs. 2 lakh), reducing the overall tax burden.

Appreciation & Lifestyle Investment

Like other real estate investments, vacation homes can appreciate over time, leading to capital gains. Additionally, investing in a vacation home allows you to choose a property that aligns with your lifestyle preferences and interests

Comparison: Residential, Commercial, and Vacation Homes

Balle Balle Properties helps you find the perfect vacation property tailored to your preferences, whether based on property type, location, or budget, ensuring the best return on investment. Our expert team also offers comprehensive property management services, including homestay rental plans with revenue-sharing options.

We provide a range of property choices, including studio apartments, 1/2/3-bedroom apartments, and cottages in prime locations such as Kasauli, Shimla, Dharampur, Mashobra, Naldehra, and more.

Let Balle Balle Properties guide you in making a profitable and fulfilling investment in Himachal Pradesh.

S.No	Investment in Residential Property	Investment in Commercial Property	Investment in Vacation Home
1	Loan availability up to 85%	Loan availability up to 60%	Loan availability up to 85%
2	Higher cost than vacation homes	Higher cost than residential & vacation homes	Lower investment starting from ₹49 lakh
3	Fixed lease period	Fixed lease period	Rented daily / No fixed period
4	1% to 2% ROI	2% to 3% ROI	8% to 15% ROI (Managed) / 20% to 22% ROI (Self-managed)
5	Maintenance required when vacated	Maintenance required when vacated	Periodic maintenance only
6	Fixed rentals	Fixed rentals	Rental rates increase with demand & can be regulated
7	Owner cannot use the property for personal use	Owner cannot use the property for personal use	Owners, family & friends can stay anytime
8	Tax benefits on loans	No tax benefits	Tax benefits on loans
9	Difficult to sell if occupied	Difficult to sell if occupied	Can be sold anytime
10	Slow capital appreciation	Slow capital appreciation	Higher appreciation potential compared to other property types

Why Choose Balle Balle Properties

Balle Balle Properties helps you find the right property based on type, location, and budget to ensure the best return on investment. Our expert team also offers comprehensive property management services, including homestay management with various revenue-sharing options.

Standard Payment Plan
Instalment Description	% Due of Unit Price 10 lacs
Booking Amount	10 lacs
Within 30 days of Booking	10% (less Booking Amount)
Within 90 days of Booking	15%
On Completion Of Structure	25%
On Application of OC	25%
On Receipt of OC	15%
On Offer Of Possession	10%
TOTAL	100%

CATEGORY	SIZES	BSP
2 BHK	1220 Sq.Ft.	85,27,800
3 BHK Small	1420 Sq.Ft.	99,25,800
3 BHK Medium	1505 Sq.Ft.	1,05,19,950
3 BHK Large	1665 Sq.Ft.	1,16,38,350
3 BHK+S	2020 Sq.Ft.	1,45,23,800
3 BHK+S with Extra Terrace (3rd, 4th & 5th Floor)	2107 Sq.Ft.	1,51,49,330
4 BHK+S	2505 Sq.Ft.	1,75,09,950

CONSTRUCTION LINKED PAYMENT PLAN
Booking Amount	10% of BSP
On Commencement of Construction	15% of BSP
On Stilt Completion	7.5% of BSP
On Casting of 1st Floor	7.5% of BSP
On Casting of 3rd Floor	7.5% of BSP
On Casting of 5th Floor	7.5% of BSP
On Casting of 7th Floor	5% of BSP
On Casting of 9th Floor	5% of BSP
On Casting of 11th Floor	5% of BSP
On Casting of 12th Floor	5% of BSP
On Completion of Brick Work	5% of BSP
On Completion of Electrical Provision	5% of BSP
On Completion of Internal Plaster	5% of BSP
On Completion of Flooring & External Plaster	5% of BSP
On Offer of Possession	5% of BSP + Applicable Charges/Taxes

DESCRIPTION	3 BHK + STAFF + LOUNGE (2800 sqft.)	3 BHK + STAFF + LOUNGE (2815 sqft.)	4 BHK + STAFF + LOUNGE (3.400 sqft.)
Basic Sales Price (BSP)	1,94,50,000/-	1,95,90,000/-	2,36,50,000/-
Preferential Location Charges A*	6,00,000	NIL	7,00,000
Terrace Charges	10,00,000	10,00,000	12,00,000
Ground Floor with Private Lawn + Backyard	12,00,000	12,00,000	12,00,000
Covered Car Parking Charges	10,00,000

CONSTRUCTION LINKED PAYMENT PLAN
Booking Amount	10% of BSP
On Commencement of Construction	15% of BSP
On Stilt Completion	7.5% of BSP
On Casting of 1st Floor	7.5% of BSP
On Casting of 3rd Floor	7.5% of BSP
On Casting of 5th Floor	7.5% of BSP
On Casting of 7th Floor	5% of BSP
On Casting of 9th Floor	5% of BSP
On Casting of 11th Floor	5% of BSP
On Casting of 12th Floor	5% of BSP
On Completion of Brick Work	5% of BSP
On Completion of Electrical Provision	5% of BSP
On Completion of Internal Plaster	5% of BSP
On Completion of Flooring & External Plaster	5% of BSP
On Offer of Possession	5% of BSP + Applicable Charges/Taxes

Investment In Vacation Home