5 Steps to Buying a Second Apartment
Is it affordable?
Make sure your decision is financially viable. Sometimes second-time homeowners can buy an apartment without factoring hidden or future costs like maintenance, property management services etc and then face buyer’s remorse. For example, if you live abroad and want to use the second home as a vacation home, you have to incur the property management services charge. Or if you want to buy a rental property find out how much ROI you will earn to ensure it will cover your monthly costs.
Consider the tax implications
When you buy a second apartment you need to consider the impact on tax payment too. For instance, you will need to pay additional holding tax on the new apartment as well as current home and if you use it for rent purposes, you will need to pay income tax. Although taxes are a liability, with advance planning you can ensure there is no dire financial repercussion when buying a second home.
What type of home do you want?
Before buying your second home, it is imperative to know the purpose it will serve and then search for apartments that serve that purpose. For instance, if you want your second home to be a retirement living place, you may want to look into luxury apartments for a comfortable lifestyle in the later stages of your life with your loved ones. Or if you want rental properties, you can look into bulk purchase such as buying more than one apartment unit to rent out.
Consider payment options
Consider how you will pay financially for your second home. You can opt for home loans or check out if there are installment payment options that fit your budget. When you are buying a second home on home loan, experts advice on contributing more from your own equity as this means you will have less financial liability. If you are thinking of purchasing the home for future needs, it is best to invest in ongoing projects as they will have installment facilities. You can also consider other options if you come from a joint family where several relatives can invest together. But make sure your investment partner is someone you implicitly trust and you are comfortable with the person so that there are no frictions in the future.
Make sure it’s safe investment
Even if it is your second home, you should be thorough in your property ownership verification such as reading clauses in Deed of Agreement, checking RAJUK/ CDA approval, land documents and so on. This way you will be in peace knowing you have made the right investment decision.
When you buy a second home, one key advantage is that you are an experienced buyer so you have the knowledge to make a sound investment choice for a better future. So decide wisely. To start your apartment search you can browse through bti properties for sale.