Holiday home: How to buy your dream house.

From financing to choosing the location, see what to consider before investing in a second home.

Having a vacation home is the dream of many families - a refuge to rest, spend weekends, or even profit from short-term rentals.  

The good news is that it is possible to turn this desire into reality, even if you already have a housing loan in force. However, before moving forward, there are important factors to take into account, which we will see next.

Choose the right location

The first decision to make is where you want to buy your vacation home. Beaches, mountains, countryside or even abroad? The location will not only influence the price, but also future expenses, such as property tax, maintenance, and potential property appreciation.

Check your financial capacity.

If you already have a home loan, it is essential to assess if your monthly budget allows for a second installment. Banks analyze your effort rate and usually require it not to exceed 35% of your monthly income.

Can you finance a second home?

Yes, you can hire a second home loan, but the conditions may be different from the first loan. Alternatively, you can opt for a personal loan, especially if the remaining amount is smaller. Another option is to use savings or sell some assets to reinforce the down payment.

Weigh the extra costs.

In addition to the monthly installment, you will have to consider taxes (IMT, stamp duty), notary costs, insurance, maintenance expenses, and possibly condominium fees. All of this should be included in your financial planning.

5. Profit from the house

If you want to profit from your property when you are not using it, you can choose short-term rental. However, make sure to inquire about local legislation, licensing, and income taxation.

Buying a holiday home is an investment that can bring quality of life and even financial return. With planning and professional support, the dream can become a reality. And remember: talk to a credit intermediary to learn about all available options - at no cost.

Read also: Second home loan: How does it work?

Want to move forward with the purchase of your dream vacation home, through a second home loan? The credit intermediaries at Poupança no Minuto can take care of everything for you, at no cost. Goodbye bureaucracy, Hello dream home! Contact us now: Poupança no Minuto