Saturday, 1 March 2014

Renting Out A Second Property

Families are changing in the 21st Century. Now, it is quite normal for men and women in their forties, with children, to be living on their own after a divorce. Consumer research reveals that increasing numbers of couples who meet and enjoy a second marriage, will have two homes. While some couples may opt to sell both houses and buy a new one, increasingly, they are opting to rent one property and live in the other.

This makes huge financial sense for a number of reasons.They retain ownership of both properties. If there is still a mortgage on the property to be rented, they can use the rental income to cover it and save a little extra in the bank for upkeep and maintenance. This may seem as though they are not making any extra money but they are because they own the rental house, and the mortgage will be paid by someone else!

Many families prefer to own properties instead as a form of retirement savings. The lack of certainty surrounding pensions in recent years has increased the number of people who are using property as an investment for the future.

Second properties can also be extremely useful if they are in a city location. There are many families who keep the second house or flat, and then make it available to older children at university, or who are starting out in life and need a helping hand.

There are so many wonderful stories of single parents who have worked hard to keep their homes. And then they meet a new partner and suddenly, there are two properties in the family! And things are looking much more financially secure all of a sudden.

If this happens to you, or it has happened to you, take your time to discuss the best options for you and your partner, and your children. It may be that keeping both homes will give you an extra income and a valuable nest egg for the future.


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