How to finance a holiday home (part 2)?

[Dr Murdoch]

Mods, wasn't sure of the etiquette of hijacking the other similarly named thread, so ive started this one, sorry.

Identical to the other poster in terms of desiring a holiday home, I would like to do the same. However, I'm completely out of my depth when it comes to finance. Family members have said I would be mad to get a 2nd mortgage.

This is my situation

Age 38 (same as wife), two kids 3&4
I'm full time, missus is 3 days per week until kids go to school full time (September 2017)
My House value is £650k, mortgage currently stands £185k
Looking to buy a flat in the region of 85k - 100k.
5k savings

So, is it pie in the sky, or is it a reasonable ambition?

Again, go easy as this is not my 'forte'!

[Dr Murdoch]

Thanks everyone

The flat (could be house) will be on the Isle of Wight, not exactly a place in the sun, but lots of things for the kids to do as they grow up. Once its done its job, i would look to sell and use the money as a pension top up.

[Dr Murdoch]

Jag_NE said:

150k plus running costs PLUS the flights to get there each time.

Just taking the 150k into account, instead you could have two very decent, high season European self catering holidays per year (assume 2.5k each) FOR THIRTY YEARS, even more so if you factor in that for the holiday home would need a set of flight tickets each time you use it. Peak season aren't for nothing even on budget airlines.

I agree with the earlier post in that buying holidays is not the same as acquiring an asset, but if acquiring the asset means you will be obligated to go there, every year, until its paid for, I wouldn't do it, it would be miserable. If you are wealthy, I doubt you would be satisfied with spending your hard earned free time in a poky 100k flat.

Thanks chaps, all comments noted.

What I should of added, this will not be used ONCE a year, it will be used several weekends a year, I would wager about 10-15 weekends, summer and winter. It will no doubt be used for a couple of full weeks as well.

It only takes me 2hrs door to door (i'm an hour from Southampton / Portsmouth) , so this is not a replacement for a summer break, rather create an opportunity to 'get away' whenever the mood takes us.