A second home is something that many people aspire to having. As well as being a great place to have for a last minute holiday escape, a second home is something that can also be passed onto your children as well as a place that will be something that you can have for retirement. There are so many reasons why a second home is something that appeals to so many people, and if it is an option that you are considering you may be wanting to get some more information on owning a second home.
Of course, it can depend on what you want from your second home, as well as what your financial circumstances are, but many people can remortgage their first property in order to purchase a second home. If you can, it is a good idea to seek professional financial advice before embarking on buying a second home. Here are a few things to consider…
Stamp duty is more for a second home than it is for a first home, so it is certainly worth taking this into consideration. Remember that you will also have the usual fees on top of the value of the property, so it is a good idea to find a good conveyancer such as building surveys Birmingham company Sam Con.
If you are going to take a mortgage out to purchase a second home, it is worth knowing that if you are intending to rent the property out then you will need to have a deposit of at least 25% of the value of the property that you are purchasing. As well as this, remember that mortgage rates on second homes are higher.
Once you have the property, the council tax is something that you will also have to pay, and it is also a good idea to factor in the fact that you will have to pay to maintain the property, whether you are renting it out or using it as a holiday home.
If you are hoping to purchase the property as an investment, then it is certainly a good idea to get some advice on whether it will be a good one or not. Not all second homes are a good investment, so do a lot of research before you go ahead and do this. Renting out a second home is a great investment, but you do need to ensure that the rent you charge is more than the costs that you are paying for the property.
A holiday home is not something that most people would necessarily buy as a financial investment, but it is a great addition to your lifestyle. Having a place that is your own where you can go away whenever you want is something that many people crave, so it is not all about financial gains – a holiday home is something that could certainly improve your lifestyle.