The purchase of a second property - for example as a vacation home or investment - needs to be well planned. In addition to the choice of property, financing plays a decisive role. Buyers should know what banks require and what pitfalls to avoid.
Equity: little works without it
Banks usually require more equity for a second property than for a first purchase. 20 to 30 percent is usually mandatory, and often even more for rented properties. If you have liquid reserves, you can obtain better conditions - and signal reliability to the bank.
Sustainability of the monthly burden
Banks check whether buyers have sufficient financial leeway even with an existing first home. Not only income and expenses count, but also potential rental income. A solid budget calculation is mandatory - including a buffer for maintenance or vacancies.
Conditions for investors
Second homes are generally not regarded as owner-occupied. The result: slightly higher interest rates, stricter creditworthiness requirements and often shorter fixed interest periods. However, those who rent out the property can deduct many costs from their taxes - an advantage that can pay off.
Check funding opportunities
Subsidies can help with energy-efficient renovations or listed properties. KfW loans or tax write-offs for landlords also offer financial leeway. Advice at an early stage is crucial here.
Conclusion
A second property is a valuable addition - if the financing is solid. If you start with equity, a good credit rating and sound planning, you secure long-term benefits and create a stable foundation for wealth accumulation or leisure value.
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