Articles:
Buying a second home – costs you need to
consider
SB May 2007
Many people dream of buying a second home. You
may be one of them. You may have already
secured your mortgage and be on the way to
realising your dream at last.
But don’t forget that the cost of buying a
second home isn’t limited to paying for the
property itself. There are a number of other
costs you need to consider. If you don’t allow
for these you could find yourself in
difficulties.
Maintenance.
Your second home needs maintenance just as your main
home does – possibly more if it’s an old
property.
Council Tax.
Local authorities can now reduce the rebate
on a second home from 50 per cent to 10 per
cent, and an increasing number are doing
so. This could cause you a substantial and
ongoing extra expense.
Utilities.
Don’t forget you don’t just pay for the gas,
electricity and water you actually use when
you’re occupying the property. You pay
standing charges all year round, whether you
are there or not – plus you may well have to
pay an initial charge for having the
accounts put in your name. And of course
you need a licence for your TV, however
infrequently you watch it. You also need
to pay a line rental on the telephone if you
put in a landline, though many people
nowadays rely on their mobiles.
Transport.
If the second home is near your main home, travelling
there is not a problem. But if it’s
hundreds of miles away it could be both
expensive and stressful.
Furnishing.
Whatever your purpose is in buying a second
home, you need to put things in it before
you can use it. It may not even have a
fridge or a cooker when you buy it, and
these are expensive. Plus there are
carpets, curtains, beds, chairs. TV, lamps –
the list is endless. Of course this is a
cost that that be dealt with gradually, but
you won’t have the full use or enjoyment of
your second home until it’s furnished at
least to a basic level.
It’s essential to factor in these extra costs
before making a decision on buying a second
home. If you find you can’t afford them, your
second home will no longer be a dream but just a
source of worry.
Bookmark with:
Facebook
 Delicious
 Digg
 Reddit
 Stumbleupon
|
