How do people buy a second home?

[summerbreezingin]

Hi

I am wondering with real interest how people afford to buy second properties/holiday homes?

We are both in our early 30s, earning good money with no dependents. We would love to purchase a second home. I work in social housing so would want this to be rented out at an affordable rent level.

My question is, just how do people do it? We have stayed in a number of AirBNBs over the years which are owned by people very similar age to us, and I wonder just how they do it?

@DexyMidnight
Fair enough, I hear what you're saying, but I think I have the right to live and raise my family where I grew up, and not be pushed out by second home owners. I have nothing against people moving here to LIVE here either. Empty second homes make my blood boil.

@getmeacupoftea

I've had this conversation with people before. My take on it is that anyone is welcome to come to London and slog for 60h/week. If the career gives them the money to buy a house in a beautiful area to use at weekends/holidays, then why not?
If someone chooses to stay and live somewhere beautiful (and often quite rural) then part of that choice is that you're a lot less likely to be a high earner and afford nice things (including houses).

@JoJoSM2
No sorry, if they work all week in London and have the money to own a second home "to go on weekends" as you say, they can put that money into local hotels or holidays lets. Which is better for the local economy. I can't see how owning a home for the sake of it being empty is justified.

Financially, it’s also probably cheaper to use a hotel than buy and maintain a house. Some people just like to own their stuff or go to their home instead of a hotel.

Thanks for the helpful responses everyone! Lots of food for thought.

@getmeacupoftea I take on board your points but I didnt say I was looking to purchase a coastal property to rent out as a holiday home? I also put to you with 10+ years of working in housing that there are many areas in the UK where people cannot buy and social housing is scarce which is something I was looking to assist with.

Home ownership is not a right nor is it a choice for everybody, believe it or not some people are very happy living in rented accommodation so long as they have security of tenure and decent accommodation.

I bought my first house as I turned 23 on my own. 15 years later released the equity in it to fund a deposit on another house with DH. The original house now on a BTL mortgage much bigger than the original. I bought it for £74k and remortgage value was £240k.

People I knew who did this were in a couple categories.

1. They were builders/construction types who knew how to flip property so they would buy property very cheap then do the work on it themselves.

1. A couple who earns quite a bit of money where one of them doesn't need to work, but chooses to work so that the income of the second person goes towards a separate home purchase.

Obviously there are people who are just rich, but these 2 categories didn't usually rely on inheritance.

Home ownership is not a right nor is it a choice for everybody, believe it or not some people are very happy living in rented accommodation so long as they have security of tenure and decent accommodation

But homeownership is for you, so much so that you'd rather own two houses than rent!

@summerbreezingin
Again, I'll just add that I have nothing against renting out properties. Just the ones that are remain empty.

*that remain empty.

Of the people I know: inheritance; high earners no kids so don't need big house; bought years ago and able to remortgage to pay for 2nd property; bought cheap when young and paid off mortgage before buying main home around 40. Probably a combination in lots of cases.

@summerbreezingin
And you say, "home ownership is not a right" - as a potential landlord 🧐

I think I deserve to own my home if I've got the money and I work hard, surely?

But if your intentions are as you say and you want to assist with housing shortage, good on you. Too many people with a bit of spare money just look to double it with no care of what it costs for others.

I think I deserve to own my home if I've got the money and I work hard, surely

Sure. But not if you don't have the money.

The answer to the question ‘How do people buy a second home?’ is that they have the money to be able to. They either earn it or were given it. There really isn’t any other way of doing it.

The people who go on about how they can't afford to buy a house because BTL landlords are pushing up prices: why aren't you looking elsewhere? I can't afford to go live in London, or anywhere down south for that matter. The first house I owned, pretty much anybody could have afforded the mortgage on it, providing they had kept their credit record clean. I bought at 22, a house and area that I GUARANTEE most who say they want to buy would turn their nose up at. However it's a nice enough quiet area, so rents out well, so now my daughter is older I've moved to a better town with better high schools, but still in an area with lower house prices than most. That's how I can afford it. I've not shot anyone down, and my current tenant has no way of buying his own house, so why the hatred constantly?

@KnobJockey
I'll repeat myself. No hatred for buy to lets. Or landlords.
It's the people who are buying up starter homes as their holiday homes that are empty 10 months of the year. I just don't think that's fair or justified.

That's great, getmeacupoftea. However, that is not the common consensus of a lot of renters, and most posts on Mumsnet end up in the same direction- see JuneSpencer's post above as a mild example.

The problem is that whenever somebody who is (or potentially will be) a BTL landlord posts asking a question, generally they get ripped to shreds for daring to make an investment in property. So, landlords don't post to ask questions, or to gain opinions. And, in turn, we end up with situations such as the scrapping of fees and potentially section 21s, which is going to detrimental to renters in the long term. But because landlords feel like they're going to get a load of hassle, they don't post about it all.

We have lived in our house for 11 years and have quite alot of equity in it. We are using the equity and some savings plus a new mortgage to get our second home. Our first home will be put on a buy to let mortgage. I would speak to a financial advisor and see what they suggest you do.

We have 3 and bought them very cheap at auction. Then became property developers, doing most of it ourselves.
We've only ever had one small income. We don't have lots of possessions though and aren't interested in materialism, but investing in property instead.
We are in our early 50's.

None were btl, you couldn't get a mortgage on the shells we bought.
No ftb would touch them, either need a mortgage or can't afford/ have no time to develop.

I just don't think that's fair or justified

But you have an equal opportunity to also buy them. There is no preference given. If you can afford it you can buy it.

Agree with Dexy very good post, Why should the child of someone who lives in a desirable area be more entitled to live there than a child born in a much less desirable area?, that sense of entitlement really irritates me, you buy or rent what you can afford and you should not get a special pass just because you lived there as a kid.

@JuneSpencer100

Correct, what is your point?

@Bluntness100 I'm talking about the absolute lack of affordable homes in my area, because cash buyers are snapping them up quickly as second homes.
And I don't think it's entitled to want to live where my family roots are, where everything I know is, where my job is, my children's grandparents are, my friends are. Of course other places are cheaper but ultimately why should I have to re-locate my whole life because the wealthy want their quaint little holiday homes.
I'm not the only one to feel this way, there are some villages in Cornwall that only sell to locals, or at least hold properties on the market until a first time buyer makes an offer, before selling to second home owners. Again, to reiterate, NOTHING against landlords of BTL. I can't understand why I'm being attacked and labelled entitled because I want live where I'm from.

Bought first home at 21 then larger one at 29

Paid some off then remortgaged to take out some equity as a deposit for a BTL (for FIL to live in after split)

Then did same a few times over the past 12 years taking equity out. Am just remortgaging them all again to take out more - it's DH's pension after 3 redundancies