04 Oct Why is now the time to buy a second home?
After a year without the ability to socialise or travel, many Brits have been able to save a considerable sum, with savvy savers now wondering what to do with their sizeable nest eggs.
As many as 74% of millennials are more interested in the idea of investing following the pandemic,* with property remaining one of the key areas to see returns.
Before buying your second property, have you asked these key initial questions?
What’s the purpose of this investment?
It’s worth considering if you’re wanting to pursue a high involvement strategy, flipping homes for profit, or you’d like to opt for a lower involvement and more long-term plan, such as letting or owning a holiday home.
Having an in-depth discussion with a local agent will help you to determine your financial position, as well as the plan most suited to your goals and interests.
The hidden costs of running your second home
As with all undertakings that require a financial and personal commitment, you need to make sure you have a thorough understanding of the responsibilities and costs.
When becoming a landlord or holiday home owner, you need to think about insurance and bills, as well as how you plan to manage and grow your rental income.
Likewise, flipping properties can come with considerable bills to pay if you make hasty decisions along the way, so you should have a budget that’s realistic and practical.
Unoccupied insurance for a holiday home
As holiday homes are usually unoccupied for the majority of the year, you will find that a regular home insurance policy won’t cover you.
This is because serious damage like a break-in or burst pipe can only be minimised if there is someone in the property.
It’s important you are upfront with your insurer about how often you will be visiting your holiday home.
Am I insured if I rent my property out?
If you decided to rent out the property, you face extra risks.
However, for some, letting could be a big part of why they bought the property in the first place.
It would be recommended to speak with an insurance broker, as this will ensure you have full coverage as a landlord whether the property is being occupied by tenants or not.
For any help or advice when it comes to property, speak to us.