Buying a holiday home isn’t something that everyone does and sometimes, even owning one home isn’t a possibility for others. So when you’re in the position of being able to own a second home, it’s definitely something that is worth taking the chance on.
Whether you have it simply as a holiday home for yourself or you’re thinking of renting it out to holidaymakers, there can be a lot of benefit to building up a property portfolio. Here are some helpful tips for buying a holiday home.
What Is It You Want?
The first question to ask yourself is what do you want? Everyone will want something different when it comes to buying a holiday home, whether they’re buying it for themselves or creating a passive income from it. Think about your criteria because this is going to be important for when you go property shopping.
The last thing you want is for you to go to view properties and not know what it is you’re looking for. If you’re buying with a partner, then it’s important for both of you to be on the same page as one another.
So think about your interiors and exteriors, think about the price and what you want to get for your money. Are there any particular features that you’re looking for when it comes to the rooms? For example, you might want a certain number of bedrooms or perhaps a particular layout for the living and dining area. Whatever it is, make sure you have those criteria set in stone before you start going shopping.
Set a Budget
A budget is a must because there might be some limitations to what you can purchase or get on finance. From a place in Bahamas Private Islands to an apartment in London, UK, it’s key to know what you’re able to afford and what’s out of your reach.
You want to also factor in what you’ll be looking for when it comes to financing and whether you can pay it in cash, via transfer, or through a financing option with a lender. Each option might affect the price and also the time it takes to put through the sale and for you to end up with the keys to your new place.
Don’t stretch yourself too much or go to the point where you’re unable to afford what it is you’ve set your heart on. The most heart-breaking thing you can do is to see something you knew you couldn’t get and fall in love with it.
Look at Different Investment Options
When you are getting a property on your portfolio, it’s not necessarily something that you have to own physically. There are stocks that you can buy in developments or you may want to collaborate with others in the property industry to help spread the costs.
Of course, the more people that are involved, the more likely you’ll not get as much of a substantial cut. Try to consider some different options and see which one matches what you’re after.
It might be that you end up sharing the cost of the property with a business partner, do it up, and sell it on after enjoying it for a year or so. Or you might want to hold onto it and instead, let it out to holidaymakers in order to create a passive income for the long-run.
There are advantages and disadvantages to both, so it’s definitely worth assessing what type of investment you’d like to make and of course, what will work out best for you. At the end of the day, that’s the thing that matters.
Consider Extra Fees and Costs
The extra fees and costs that can come with buying a second property can be the same, if not more when purchasing your first home. You may have to invest in some furniture or perhaps you’ve got to consider the relevant fees and taxes that are taken by those making commission and profit of the sales or sales process of the home.
These are important costs to factor in because that could alter what you can afford, and this could be the difference between one property and another.
Get Legal Advice
Any property transaction must be done legally and by the book. Whatever direction or whomever you go with or partner up on the sale, it all needs to be seen to by a legal representative. There will be more than enough individuals or companies that will be able to handle your needs.
So with that being said, make sure you’re picking a good representative and someone who preferably specializes in real estate. You don’t want someone who operates in a different area of the law, otherwise, they might not be able to provide the best or most accurate services.
Make Sure Your Finances Are in Order
And finally, when it comes to getting your first holiday property, it’s essential that all your finances are in order. You don’t want to find yourself in a considerable amount of debt or having outstanding payments if you’re doing this all by finance.
With finance, it’s not your own money and so if you miss payments, the property might slip through your fingers. Make sure that you’ve approached a financial advisor if you haven’t already and perhaps need some guidance on how to organize it all. When owning a second property, there might be some loops and hurdles that you have to jump through before securing the property.
Buying a holiday home is certainly a good investment opportunity to take advantage of, and if you can do it, then it’s definitely worth doing. Try to make sure you’ve done plenty of research, you’ve assessed what’s possible and what’s out of reach, and be sure to take the process slowly. The last thing you want to do is rush through a sale that you’re not 100% confident with.
With these tips, you’ll be able to secure a holiday home is a great opportunity and so use these tips to get the most out of your property investment.