- Cash buyers might be tempted by falling house prices
- But consider the capital gains and inheritance tax implications
- Letting the property as a holiday home can be financially beneficial but limits the amount of time you can spend in it
Having a second home in which to spend weekends and holidays by the seaside or immersed in nature sounds marvellous. And since March 2022, UK house prices have decreased by 2.8 per cent in nominal terms or a whopping 13.4 per cent once you account for inflation, according to an analysis of the Nationwide house price index by estate agent Savills. Although the actual figures vary hugely depending on the area and type of property, if you're a cash buyer and don't need to worry about prohibitively high mortgage rates, it's not a bad time to buy.
Asis often the case with property, lifestyle factors also come into play when deciding whether or not a purchase is the right choice. However, from a purely financial perspective, buying a second home can be tricky and there are likely more lucrative investment options.