Wouldn’t it be great if you had two homes?
Perhaps you could have one that served as a base during the week close to your work and another that acted as a country retreat for the weekends. Maybe you could have a regular home here in the UK and then another overseas for holiday lets and vacations.
In this post, we’re going to take a look at all of the benefits that owning a second home brings, and what you can expect. Please note that buying a second property may entail different tax liabilities. You may also need to provide a bigger deposit on any mortgage you wind up taking out.
So, with that said, what are the benefits of a second home?
It’s A Long-Term Investment
With interest rates on savings accounts so pitifully low right now, people need alternative ways to save money. Buying a house is one of the best options for a couple of reasons. First, house prices tend to rise consistently over the long-term, thanks to restricted demand and inflation. And second, the assets are safe. Nobody can pick up a property and walk off with it.
In that sense, therefore, second homes are a kind of investment. They’re like a stock portfolio that you can actually put to good use any time you like!
Meriton Apartments – a property site – touts the benefits of this kind of approach. House prices tend to be much more stable than the stock market over the short term, providing you with a secure source of wealth.
It Generates Income
Most people with second homes don’t allow them to sit empty for large chunks of the year. Instead, they either turn them into holiday lets or rent them out.
Typically, you’ll make around 5 per cent return on your investment per year through income alone (not including any asset appreciation) after taxes. It’s not quite what you’d expect on the stock market – but it’s not bad either.
The fact that a second home generates income is a big draw for many people. It’s nice to be able to supplement your regular wages with passive income, topping them up every month.
It Gives You A Place To Stay Whenever You Like
Having multiple homes is one of the most rewarding lifestyle changes you can ever make. For the first time in your life, you can decide which property you return to after a long holiday or where you spend your weekends.
Don’t underestimate the impact that a change of scene can have on your wellbeing. You could have one property that you associate with work and doing chores, and another where you spend lazy afternoons reading books and sipping on your favourite chilled beverage.
People see second homes as the preserve of the rich. But, really, they’re just tools that you can use to improve your life. You don’t want to feel locked down to a single location if you don’t have to be. You want multiple estates that each provide something unique for you and your family.