May 23, 2019
Isn’t it the ultimate dream—a second home? Imagine a seaside bungalow right next to a sandy beach or a countryside cottage where you can relax by a log fire.
Moreover, a second home can also be a lucrative extra source of income if you rent it out.
Really, it’s no wonder getting a second home is so popular these days. In fact, research shows one in ten people own a second property in the UK.
Whether you’re hunting for a holiday home or a buy-to-let—here’s everything you ought to know about buying a second home.
What’s it gonna cost you?
Firstly, you need to cover the purchase price. The good news is you can get a second mortgage without having to sell your first house. But you’ll need a deposit (usually at least 25%), a good credit rating and proof you can cover the cost of all your mortgages.
Other fees include stamp duty (3% surcharge for second properties), legal costs and paying for a survey. And, that’s all before you’ve got the keys in your hand.
And don’t forget about tax. It’s best to check with HMRC as the amount of tax you need to pay will depend on a few things like are you’re going to live in the property or are you going to rent it out?
It’s not just general running costs like utility bills and service fees. You also need to consider the cost of redecoration and ongoing maintenance—especially during periods when the property is unoccupied and is more vulnerable to disrepair.
To help guide you through this, here a few key questions to ask:
- How are you planning to manage the upkeep of the property yourself or are you going to employ someone else to do it on your behalf?
- Do you have an emergency plan if something happens in the property when you’re not there? For instance, a fire or a burglary—how will you manage this, especially if you live far away or even in another country?
- How will you ensure the property is secure in-between visits? Are you planning to pay someone to check on it daily? Or are willing planning to install smart technology so you can to keep an eye on your property remotely.
Location is pretty much everything whenever you’re buying a property.
But if you’re thinking of investing abroad, it’s vital you buy somewhere that you can visit easily. For instance, if only one airline travels to the closest airport, what would happen if they cancelled the service? Are there other viable travel options?
Other things to consider include:
- Are you already familiar with the country or location you want to buy in?
- Each country has its own property law—make sure you’re familiar with your legal responsibilities when buying a property in your chosen country.
- Factor in currency changes into your budget as these can fluctuate significantly.
- Is the location easy to reach? Are there transport links?
- How much does it cost to get there? How often will you be able to visit per year?
- Is it going to be a holiday rental? If yes, is it located in area or neighbourhood that is popular with tourists?
- Check out local amenities and services—does it have everything you need now and in the future? Is there a local community you can connect with?
- Look into local planning laws if you want to develop your property.
Don’t rush into anything
Take your time looking for a second property. Don’t buy anything on impulse. Instead, make sure you’ve done your homework, know your figures and have a clear idea of what you want to do with the property beforehand. The last thing you want to do is accidently purchase a property you then can’t sell later on.
Need help selling your property?
If you need to sell a property quickly (maybe to help raise funds for a second home but don’t have much time), then use a cash buyer.
A company like House Buy Fast will buy your property hassle free and complete in days.
For more information go here: https://housebuyfast.co.uk/services/cash-house-buyers/