2nd property costs - what have I missed?

[Mum2Fergus]

Hi, in position to purchase 2nd property a couple of years sooner than planned which will result in having 2 properties for 2-3 years before I move full time to the new house selling current house in the process.

I know I will have additional Council tax, minimal gas/electric costs, insurance...have I missed anything?

What are you doing with the 2nd property?

Water
Stamp duty
Insurance on an empty property can be more

The stamp duty will be your biggest cost. It’s really high on second properties

Stamp duty

2nd property will effectively lie empty until I retire and move there permanently when I sell my current house.

In Scotland so water included in my council tax.

additional dwelling supplement which can be between 6% and 18% depending on the value of property you are buying.

The insurance may well have clauses about regular visiting. If it isn't local, that will cost.

Second stamp duty is a killer. You'd get it back if you sold the first house within 36 months.

Council tax on second homes can be double cost. Check the policy in your area.

You will either need to heat the second house, or drain the boiler/radiators etc.

Garden maintenance - again, easy if close, but a cost if you need to employ someone.

Can you afford to buy the second house? Or are you looking at a mortgage? That rate can be higher.

It's doable, but ££ - and we only did it for 6 months.

Well I have a second property that's occasionally used, and I would say don't expect the utilities to be minimal - you'll need a level of background heat to stop the place getting damp, and to make sure its comfortable when you do arrive. A smart, wirelessly controllable thermostat means that you can have the place warm for you. Don't forget the daily standing charge either - I reckon that for my place, which is used maybe 50 nights a year (and is all electric, albeit with solar panels, battery and cheap rate night electricity) energy costs around £800/£1000 a year, water £3/400. Council tax is around £1,600 - but some places (Wales?) charge second home owners more than the standard rate. Insurance is higher when its not a primary residence, or at least was for me. You might want/need a TV licence as well. So I reckon it's £250 a month in standing charges.

Other costs are a gardener / cleaner to keep an eye on the place, and keep it looking tidy. So that's another £100 a month if they do a few hours every fortnight. And then the doubling up of the amount of linen, crockery, cutlery, pans, appliances in the set-up phase. You think you'll be happy to cart stuff there when you need it - but you'll soon get fed up of that!

Capital gains tax potentially (although if the house you're selling is your primary residence at the point at which you come to sell, then capital gains doesn't apply)

Honestly, what a waste. Why not just move house when you actually need to rather than buying a second home and depriving someone else of a first home.

Insurance on a house that is empty is a LOT more than normal insurance.

Seconded. My dad has a second home - also in Scotland, by coincidence - and the insurance on that property is substantially more than on his main home, because he has it set up that it's okay if he doesn't visit every 30 days. (A decision that was definitely validated when lockdown kicked in.)

Lots of insurers won't cover an empty house unless precautions are taken e.g. windows boarded up. I'd contact a broker and get a proper insurance quote.