Buyers Market – Tips for Buying a Second Home

The subdued housing market, means now is a great time to investigate how manageable it is for you to buy and maintain a second home.

Get mortgage advice today

The latest housing market publication by Hometrack reveals June sales increased by 10.6 percent from May, which is the highest monthly increase since March this year of 12.6 percent.

They suggest this improvement is largely the result of greater realism by sellers as prices fall to enable movement.

Hometrack shows agents are keen to ensure prices are at a level where transactions can take place to support revenue.

The average price of a UK home fell by 0.1 percent in June, highlighting how prices remain a downward pressure. The supply of homes for sale continues to grow well ahead of demand too, so buyers are likely to have a good choice for their money.

However, if the market continues to move and sales volumes increase, prices will soon follow, so those considering buying a second home should act fast.  Although, average prices today are 3.9 percent lower than this time last year.

Holiday Home

Buying a second home as a retreat when everyday life becomes too stressful, is not the best way to save money on holiday funds.  It is not recommended therefore, that you buy a second home simply as a means to reduce your holiday costs, as a second home will cost a lot more and it is only a sensible move if you are planning on making it an investment too.

However, if there is a part of the country you are particularly keen on, and have been thinking about buying a holiday home for a while, now is a good time to look as you could get one for a good price.  Just remember to factor in the costs of maintaining it.

Future Investment

A second home could prove to be a good investment and if you have the money to put into one, then now is the time to take the plunge.

Any property you buy now will be likely to grow in value considerably when the market picks up, and as previous recessions have proved, the housing market does tend to bounce back.  So when this happens, and properties for sale are high in demand, then this is the time to sell as you are likely to be able to sell it for a lot more than what you bought it for.

Retirement Income

The investment you make on a second home could also go towards your retirement too.

Even if when you come to sell it the value has not risen as much as you had hoped, with a bit of renovation, you could easily add more to it.

The main difficulty those looking to purchase a second home may find will be attaining a mortgage.  However, if second home buyers have already paid off a mortgage then they are likely to find it easier to be accepted than a first time buyer.

Analysis from a leading comparison site recently revealed, mortgage rates are very competitive at the moment, providing further incentive for second home buyers to act now. 

The figures show the average interest rate across two-year fixed rate mortgage products are at their lowest since the base rate was dropped to 0.5 percent.  The average two-year product now stands at 4.25 percent.

Guest post by MoneyExpert

avatar
Posted by: Nicola Severn Categories: Buying Tags: , , , 2 Comments

2 Responses to Buyers Market – Tips for Buying a Second Home

  1. avatar Samantha says:

    I think it is incredibly important to just TALK to someone who is educated about finance and real estate. Buying a home is not an impulse decision.

  2. Many second home buyers release remortgage their main residence to release funds and buy a holiday home. The rates are typically more attractive in these cases.

    Also many holiday parks and developments have finance schemes in place with 15 year repayment plans for buyers.

    Andy
    Holiday Home Information