Loans for holiday homes are different than loans for year-round property. When buying a holiday home, the bank has the opportunity to cover 75% of the amount through a mortgage. When buying a full-year property, the bank can usually cover 80%. However, this does not mean that you are disadvantaged as a borrower.
Mortgages mean the bank takes your home as a guarantee. The bank does this to ensure that the loan can be repaid. This also means that in connection with the purchase of a holiday home you have to provide yourself with an amount covering the remainder.
You can choose to cover the remaining part of the purchase price through a cash amount from savings, for example. Otherwise, you can also choose to take out a loan at the bank, which will enable you to pay the final amount of money. As with a home loan , the interest rate is lower than if you take out a consumer loan.
Do you dream of a holiday home?
A holiday home is the opportunity for a break in everyday life. It is a place that can be associated with relaxation and immersion. It is tempting to think that buying a holiday home is easier than buying a year-round property. After all, you should not stay there all year, and the price is usually lower.
There are a number of things to be aware of before signing the purchase contract at the holiday home. The rules for holiday homes are different compared to year-round properties. For example, you can only stay in the holiday home for a limited period of the year.
You should also consider what plans you have with the home. Should it be rented out? If yes, consider whether you will be able to give up your home. Conversely, there is a possibility that you can make money renting it out. It may be an opportunity to supplement financially to repay the loan.
You need to be aware of this when buying a holiday home
Holiday homes are often located outside large urban areas. You should therefore consider how far away from the city you want to be. Of course, it all depends on how you prioritize your interests. Is forest and nature important or is urban life the highest priority?
How would you like the house to be more primitive than your year-round property? Often, holiday homes are smaller and more compact than the houses that are sold for year-round housing. It is worth considering if you imagine that the vacation home should be equal to your home.
Just like with a home purchase, you should make sure the outside factors are in order. Before buying the house, you should check condition reports, monthly expenses and anything else that may affect the price in the long run. You may want to consult a housing lawyer for impartial advice.
The purchase of a holiday home is on par with the purchase of year-round property. With this guide, we hope you have become smarter in the market.