Real Estate Investor Magazine April 2024 Edition | Page 106

Colby Short , CEO and cofounder of GetAgent added : “ Our study has revealed some of the most desirable locations for a second home , with lots of them not only being great investments as part of a portfolio , but also making great holiday homes for homeowners themselves . Many of the indemand destinations revealed in our research are located in areas of natural beauty , and provide easy access to other desirable travel locations .
“ However , whether you ' re making your first foray into rentals , or eying up a holiday home on the coast , second house purchases aren ' t known for being cheap . The additional three per cent Stamp Duty fee ( on top of the Stamp Duty Land Tax you already pay ) can make the punch to your purse all the more noticeable . house to someone else , you ' ll need a buy to let mortgage . And if you ’ re specifically purchasing a property with the intention of renting it out as a holiday home - and intend on renting out your let for more than 210 days a year - you ’ ll need a holiday let mortgage .
“ The deposits required to successfully obtain these mortgages can range from 15 % up to a whopping 40 % - meaning you should definitely carefully consider your financial status before investing in a second home .
“ For this reason , many people will need to take out a new mortgage package to finance the second property . If you ’ re planning to live in both your residences ( either as a summer home , or splitting time between the two properties ), you ' ll need a residential home mortgage ; but if you want to boost your income by renting your new
54 APRIL 2024 Real Estate Investor Magazine