To overpay mortgage or to buy a holiday home

[WakeMeFriday]

We have some savings and I feel really tempted to explore a holiday home in Spain but my DH thinks we would be better off either by paying off our mortgage or buying a buy to let in UK.
I am more of a dreamer while my DH is more practical.
What would you do in our position and also please share any insights on buying holiday home in Spain.

My parents bought a holiday home in Spain in their late 50s and had a great 10 years or so post retirement when they could go for extended stretches of time. Then the double whammy of Brexit and COVID happened, flight prices doubled (at least) and they could only spend a certain amount of time out there due to not being EU citizens. The maintenance became a millstone and they sold up a while ago. Having seen how much faff it was has put me off owning abroad forever!

1. Everyone I know who’s had a hh has got bored of it after around 5 years. They end up not going and just renting it out, then selling.
2. Im a firm believer in one home being enough, no one needs a holiday home.

Overpay your mortgage and treat yourself to some nice holidays with the money you save each month. You could also make home improvements. Definitely don’t buy a buy to let or holiday home!

Overpay the mortgage.

I would overpay the mortgage. But then again I wouldn’t want to holiday in the exact same place regularly, I like to explore different places and just return to favourite spots occasionally. But there are so many scenarios where a holiday home could become a logistical or expensive nightmare. so I think unless you’re in a position where you’d be taking very regular and extended trips to your holiday home - basically partly living there, I wouldn’t bother.

I'd either overpay or buy a holiday home. No way would I buy a rental. More hassle than they are worth at the moment.

A holiday home in another country will require a maintenance company, two lots of possessions, regular flights, two lots of utility bills &housing taxes and the extra costs of travel, which will all strain your budget if you are paying a mortgage at home.

If you pay a large chunk off your existing mortgage, you will have lower payments that will allow you to travel as you please but also to retire earlier. It also protects you against any future change in income.

Btl in the UK isn’t worth it anymore. That’s why lots of landlords are selling up. We did. I wouldn’t buy in Spain in the current climate - but I’m other countries are happier to receive your money!

I’d also overpay the mortgage. We considered a HH a couple of years ago (in a UK town which we love) but decided against it. Partly it was because of the impact of 2nd homes and partly the hassle factor.

Don't do it! So many dodgy building schemes of places in Spain - and such a hassle to sell when you want rid. Quite sure it'd be cheaper to throw money at a load of holidays

(bad experience getting shot of inherited property, took almost 9 years. )

This is our plan

Meant to quote you above.

A lot of people buy holiday homes in beautiful locations and then don't go. I imagine it, becomes like a gym membership you're not using, just living with constant guilt for not using it. Then you are liable for capital gains tax and double council tax.

Second homers arnt particularly welcome either as people see homes go empty, when locals cant rent/buy there.

I wouldn't do buy to let either for many reasons, but in short it's not worth it.

Depends on your circs but assuming you're not planning to retire imminently, I'd buy equities. If you don't fancy that, overpay the mortgage.

Only circs in which I'd buy the holiday home is if that was your joint dream and you had your eyes open about the fact that it's unlikely to be a good idea financially.

Agree with ur DH, pay off the mortgage before even considering a holiday home.

Go holiday home! Why not? Residents in those areas & counties where everyone wants a place but can't be arsed to live & contribute LOVE that shit. And it doesn't affect housing stock or long term lets or, like anything.

Don't buy one of these whatever you do.

https://www.bbc.co.uk/news/articles/c2016lxnepno

We have been away with friends twice to their holiday home. The first time they spent all day trying to find a plumber for a repair, the second time it was the same with an electrician. Other friends have a holiday property they rent out when they are not using. They have ended up only going in the off season and have to spend the whole time doing maintenance.

For me I find a holiday is often the only time I can truly relax as I don't have any jobs that need doing. If I owned the property then I would probably constantly find things that need doing and cleaning - no thanks.

Why would you want to go on the same holiday for the rest of your life? And maintain a property all year round to live in a few weeks a year?

It seems like you and your DH are completely at odds- he wants to secure your stability in your current home and/or use your savings to generate more financial freedom in the future.

You want to expand your current lifestyle now and risk sacrificing future financial security.

I'm with DH.

Pay off your mortgage earlier. Holiday homes, especially abroad, are a nightmare, unless you are planning a permanent move there. Legalities, expenses, all an absolute pain.

Pay off mortgage. Holiday home in the UK - somewhere popular like windermere where holiday lets would be possible.

This is horrible! Thank you for posting it.

I think you'll find a lot of people in tourist areas of the UK would agree too.

Houses become too expensive, locals can't compete in the market, then there's issues trying to get staff in the local shops because nobody lives in the area. It becomes a vicious circle. And it affects the local community too.

However.i can't see second home ownership ever being banned. How many MPs will have multiple properties?

DH and I have looked into buying abroad so many times in some detail. It always comes back to it being a real costly headache logistically.

On the other hand, we have had second homes in the uk for many years and love them. We have never rented them out.

First one was 2.5 hours away - that was too far on a Friday with small children so changed to one 1hr 20 away.

Before anyone is upset by second homes, the one I have had for the last 20 years is a designated holiday home and can't be used as a permanent address (can't vote, can't send children to local schools etc)

I'm just selling my buy to lets. Too much responsibility for the return for me and will not get worse imo

Pay off your mortgage first though.

Holiday home turnaround is costly though if you are thinking of that and the cleaners really need to be reliable. I had a friend who did her own and she spent so much time driving, washing sheets, cleaning etc.

We inherited a holiday home in Spain and I would never recommend buying a holiday home abroad to anyone. That goes double if you are not fluent in the language and don't have friends or family there that can help you. The red tape and bureaucracy is horrendous - and don't even ask about the inheritance process when you don't live there.

Pay off your mortgage and enjoy all the extra money by going on holiday all over the world.