Are you searching the market for a second or holiday home?
Trawling through the market can be a real slog, and it can be so hard to cut the wheat from the chaff, quality wise.
However, if you are armed with some things to look out for specifically, you can drastically cut down the amount of time spent in the hunt, and will be able to create a shortlist of quality properties much easier.
Let’s dive in!
What is the Purpose of the Purchase?
What we mean by this is, why are you buying a second home? Is it for use by you & your family as a holiday home, or is it intended as a rental property?
Answering this question can help you identify ideal properties easier based on your requirements. For instance, if it is for your family, you may need a 4 bedroom abode, whereas if it is a rental property, a 2 bed home may suffice.
Many property websites allow you to search by bedroom amount, which will make your search that bit easier. It may even be the case that an apartment is sufficient for your needs.
If the Purpose is for Rent – Do Your Homework:
Many people purchase a second property to rent out, as they see it as a potential nest egg when they sell it later on down the road and would hope that the rental payments coming in would cover the mortgage repayments.
However, you will need to do your homework first.
Check out other similar properties in the area. Are the rents being charged similar to your expectations?
You will also need to consider potential property taxes in the area.
Don’t Forget Additional Expenses:
Something that a lot of people don’t even think about when purchasing second homes is additional expenses that are due.
Many mortgage providers insist that your home is insured, so you will need to factor this into your costs.
Also, maintenance of the property, from garden upkeep to general repairs, can run into big money territory – especially if the house you purchase is a “Fixer Upper”.
Buying a Holiday Home?
If you are looking to buy a holiday home, it is always a good idea to check out the area first, to see if you like it.
You could potentially rent a place nearby to the house you are considering purchasing, short term.
This will really allow you to get a feel for the place. Also, consider purchasing a little outside of the city. You may find that prices are a lot more agreeable.
Just make sure that these kinds of properties are serviced by public transport.
These are some things that you should consider carefully when choosing a second property.
It’s always a good idea to avoid impulse buying also – don’t jump into a decision.
You could end up regretting what should be your dream getaway or potential nest egg.