Owning a home of your own is great, but for many people, the desire to own a second home is also strong. A second home is something that many people in the UK lust after – they are beneficial in many ways. A second home is a choice that many people make for a variety of reasons – having a getaway place that you can head off to on holiday at a moment’s notice is appealing, as is home that can be used to rent out and generate an income.
It is not unusual nowadays to own a second home, so if you are thinking of joining the millions of people who do have a second property, there are some things that you should consider before you go ahead.
Many people who purchase a second home need to get a mortgage. Mortgages for second homes are a little different – you will usually need to have a larger deposit, and you should have a look at the various mortgage deals available to you. If you are buying a property which you are going to rent out, then you will need a buy to let mortgage, which you will probably need around 30% of the price of the property as a deposit. This is similar if you are wanting to purchase a property to rent out as a holiday let. However, if you are buying the property for personal use, with no intention renting it out, then you will just need a normal mortgage like on your first property.
As well as the mortgage and the property itself, it is also important to factor other costs into your budget. Costs such as estate agent fees, and solicitors and conveyancers that you will need to find like these building surveys Birmingham based company Sam Con. Another thing that you need to remember is that stamp duty is higher when you are buying a second property, as is council tax (although if the second home is a holiday home you may be eligible for a discount). Of course, as with your current home you will also have the general maintenance costs too.
It is also a good idea to speak to local estate agents in the area that you wish to buy in. As they will have local knowledge they will be able to advise you on properties depending on what you intend to use it for – for example they will be able to let you know how much rent you will be able to charge to future tenants.
Because there is so much to think about, it is advisable that you get some independent financial advice when you are looking for a second home. There are plenty of things that you can learn about how to ensure that you get the best deal and which properties would be better for you and your personal situation.
