11 Jul A Second Home – What you Need to Think about Before Buying a Second Home
Many of us dream of having a second home – an investment for the future to use for retirement, a home for children and grandchildren and the perfect place to enjoy holidays at any time of the year – you can see why having a second home is so sought after!
If you are thinking of buying a second home, there are certainly plenty of things to think about and research before you dive straight into searching for that perfect place. One of the first things to consider is of course how you will pay for it. Many people who buy a second home are still paying off a mortgage on a first home, so you will need to get a second mortgage to be able to pay for the new second home.
Usually there are conditions that you will need to meet for having a second mortgage – a high income is necessary as you will need to be able to pay back not one but two mortgages, a high credit rating of course and a bigger deposit to put down on the property are all necessary also. You can also remortgage your current home in order to pay for a second home – this is something that you should think through and if possible, get professional financial advice on to ensure that you have considered all of your options.
As well as the cost of the property itself, there are also additional costs on top of that when you purchase a second home. Stamp duty is something that you will have to pay more of when you are buying a second home, as it will not be a primary residence. It is worth looking into what the stamp duty costs are as these can change.
It is also worth considering the costs associated with purchasing a property such as solicitors fees – it is a good idea to find a local company like this building survey Birmingham based company Sam Con who can deal with your conveyancing for you.
As well as the costs of purchasing a second home, it is also important to consider the ongoing costs of running a second home – maintenance costs as well as council tax rates for second homes are something to consider long term – renting your home out is a good idea if you are not going to be using it all the time as then you will be able to generate an income from doing this.
Although buying a second home can be a fairly stressful and complex process at times, with the right advice and plenty of consideration you can not only have a sound investment, but also a property that you and your family can use in the future.