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WHAT ARE THE KEY ELEMENTS OF EACH, AND HOW DO THEY DIFFER? In typical circumstances, a client should purchase an investment property with their HEAD, and a second home with their HEART. After all, a second home is personal to THEM, and them alone. It is for their own enjoyment so they should base their decision on what pleases and excites THEM. For an investment property, the criteria should be very different. Decisions should be based on financials, whether it be for potential capital growth or for rental investment. Problems can arise if buyers are looking to purchase a holiday home which they intend to use for part of the
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year themselves but with which they also want to earn a decent rental income. In this highly common scenario, there is often a conflict between head and heart as the criteria for investment and personal enjoyment both need to be met.