Buying Your Second Home
There is a very distinct difference between a first-time home buyer and a second-time home buyer. The latter category has been through the home buying experience before and knows very well what it entails. It is likely that this second-time purchase is spurred on by various factors. The second home, its location, quality and size, will probably reflect many of these factors.
Why do people decide to change home? At a stage where most people buy their second home to replace that first one, it is likely that they are at a totally new stage in life. A better job that is acquired – thanks to increased experience and professional improvements – means more money in one’s pocket. So how does one invest it? Some people decide to buy a second property in Malta because they want to make a public statement. We are now professionals – our home should reflect this image. Now we can afford our dream home. Now we can afford our own private pool, a front garden, or garage space for our two cars. Now we can afford to have more space to keep some pets. Now we can afford to live in a better area, closer to recreational spaces for ourselves and our children; and so on.
Perhaps there is also a practical element involved in the decision. As one gets older, so one’s parents become older. Some people decide to move back to the old neighbourhood to be closer to ageing parents. Chances are that family changes have also spurred this decision on. A larger family, a new baby, all mean that the first house – probably a one or two bedroom first investment – is no longer suitable to keep everybody comfortable. Baby’s cot must move out of the main bedroom, but in a one bedroom flat, this will pose obvious difficulty. Perhaps a second baby will create this difficulty as the second bedroom may be too small to keep two children.
The buyer is also wary of what can go wrong and what he or she wants by way of specifications when ticking the ‘I Want To Have’ list. Let’s face it, a first-time buyer is generally young and not much experienced in certain practicalities. But the second-time buyer has already owned a property and knows very well what it entails, what glitches to avoid, and what deals are made of. Therefore the second-time buyer has a sharper and keener eye that notices details very often overlooked by the first-time buyer. Incidentally, a second-time buyer may also be less adventurous and less likely to have time to waste. Therefore he/she is a likely candidate to enrol the full assistance of a professional real estate agency, preferring to be guided along whilst laying out a well versed list of specified wants and expectations.
An increased income will allow him/her to invest more and achieve greater trust from banks when loans are requested. A home loan will be calculated on a higher pay packet and this may allow the buyer to request to have the loan including a furniture loan and a finishing loan. The furniture loan is useful to help furnish the new home which will probably be in a different style from the first one. The first home furniture may well be obsolete for the second home and thus left behind or sold off to compensate for expenses. The finishing loan will help complete unfinished properties as in the case of shell form purchases or semi-finished properties. It would be wise to check out how different banks can support a second home investment and also how taxation will hit the second home buyer as taxes incurred by second home purchases are higher than those on first home purchases. Making sure all expenses are covered will help make the transition financially glitch-free.
The new home will become the home which sees the family grow and expand. It will be the background against which family history changes as the family itself changes. Enjoying the hunt for the perfect second home in Malta will also be a family experience shared and remembered for a long time to come.