Having a Vacation Home vs Renting Villa vs Hotel

rent vs buy
There are few people who have a dream to travel around the world. Another few set of people would like to go to some specific destination for a small duration. Be it a traveling around the world or a small trip to a specific destination budget is the most important part. Sometimes you tend to overlook the budget when it comes to fulfilling your dreams but sometimes budget has to under control. Buying a vacation home and getting a hotel or a renting villa are the two options that one has.

Renting villa vs staying in Hotel


There are a variety of hotels and renting villas for vacations available. One can look for different hotels and choose the affordable one in cases where they are not on long vacations, this is considerably cheaper. If you are going to a specific destination with a specific number of days in hand, it would be the best option to look for the package traveling system.
There are other benefits that come together with this package like transportation, accommodation and food (depends on the deal).
Accessibility is another advantage of choosing a renting villa or hotel for vacations since most hotels are located in the urban areas unlike in the case of owning a vacation house.


One is restricted to using the facilities available in the state they are in.
Paying for a hotel each time you go on vacation tends to be expensive in the long run.

Vacation homes

A lot of people are investing in vacation homes which they do not need to reside in full time.


Convenience, self owned house provides a lot of expediency as one can access the home anytime without following different procedures like booking and making reservation commonly done in hotels.
Self owned homes are more comfortable as one can customize it to suit his or her own needs for example by adding or changing the status of the facilities available.
Self owned homes become yours once you finish with the payment agreement and you do not need to incur any added costs when spending there unlike in hotels.


It is expensive buying and maintaining more than one home.
One fight may not find a home in a desired area

Investing in a second home in india versus outside India

Investing in a second home in India has a number of advantages; it is a process that helps a lot in saving of taxes. One can get a second home loan depending on the capabilities to repay these loans and after that provide tax deductions on the interest charged on the second loan. This is done as the investor enjoys savings on tax on the principal and interests of the previous loan repayments. This is not the same for investors outside India as they do not have these added benefits.

Home investors in India also enjoy an exemption policy where tax is exempted for buyers who avail a home loan for acquiring a residential home. This is stated in the Income tax act under section 80 C.

In these cases, the amount repaid towards interest is let off from the income taxable. In similar cases the amount repaid towards the loan principal is let off from the taxable income

In the case of a subsequent home for which a loan is obtained, there is no let off for repayments on the principal element. However interest paid on the subsequent home loan is laid off from the income taxable and there is no higher limit to the sum that can be let off.