Buying a second home is becoming an increasingly attractive option for families and couples. Whether you’re purchasing another property as an investment opportunity, or as a home away from home to enjoy during holiday periods, there are a number of things you should take into consideration beforehand.
Planning ahead and understanding all of your options is essential to ensure you get both value for your money, and a property that suits all of your needs.
Consider the Purpose of the Investment
Before you start looking for properties,it is important to ask yourself what your purpose for buying a second home is – do you want a holiday property to enjoy with your family and friends? Or are you buying as an investment to rent?
Your reasoning will help you to determine a number of crucial factors, including cost, location and maintenance.
Buying as an Investment
Purchasing a second home is a popular investment strategy, offering the flexibility to earn a profit by renting the property out. You’ll want to bear in mind the following things though:
- Whether the area is attractive for renters
- The personal financial benefits of a buy-to-let property
- Potential upkeep costs
- The process of negotiating letting contracts with a property agency and/or tenant
- Your responsibilities as a landlord
Buying as a Holiday Home
For many homeowners, the idea of having a second home as a holiday retreat to enjoy with family and friends is incredibly attractive. Not only does a home away from home give you the chance to escape your usual surroundings, it also gives you a chance for a holiday whenever you feel like it. If you’re living in a big city, having a second home is a perfect way to escape from the usual hustle and bustle.
Understandably, a holiday home will be all about the location, so you’ll need to do extensive research on the area first. It’s advisable to avoid buying a property somewhere you’ve never visited before. Thinking ahead to the future as well, it might be worth considering whether the location is somewhere that you would happily retire to when the time is right.
The best holiday homes are those that are easy to travel to from your home location, so keep in mind the feasibility of a commute. If you’re planning on staying at your second home regularly, a property on the other side of the country might not be a good idea.
Scout Around for Locations
You might already be set on the idea of buying in a specific location, but it’s vital to take time and do your research on the area first. Don’t just consider one location, look at a number of different ones and weigh up the benefits and potential drawbacks of each.
It’s worth spending time in the location you are considering buying in beforehand. Find out what the area has to offer, what is closeby, how safe it is, and what the transport links are like.
Be Aware of the Tax Changes
As of April this year, the Stamp Duty charge increased by 3% meaning that homeowners purchasing another property would need to pay additional tax. Therefore, it’s important to understand how these taxes will affect your purchase and budget for this additional expense, alongside the price of the property itself.
Keep in Mind Any Maintenance Costs
The last thing you want when you invest in a second property is to find yourself paying large sums of money for the maintenance, upkeep or renovation of the property. The less maintenance a property needs, the better.
Even if you see the potential in a property, you’ll need to ask yourself whether you can really dedicate the time and finances to getting the property into liveable order.
Also, if the property is in a place with extreme conditions, for example by the sea or in a mountainous area, there may be further demands on maintenance that regularly need to be addressed throughout the year.
Find Your Second Home
Buying a second home may be more affordable than you think and can bring a whole host of benefits, whatever your reason for investing. Take a look at our blog for further property buying tips. If you still need a helping hand, don’t hesitate to contact our Manchester office on 0161 872 2622 or by emailing us through our online form.
Posted on: September 1, 2016