The demand for second homes has risen to its highest levels since 2017.. And in this way, it follows the upward financial trend that began in 2021 and which had increased following the outbreak of the pandemic. Now, three years after the pandemic, the search for a second home continues to boom. So much so that it now represents 13 % of the total demand for purchasing a second home at this time.
Most citizens who want to buy a second home think of it as an investment. This is the case in 45% of cases. On the other hand, 39% believe this is a good way to To build your own wealth. On the 22nd %, he believes that in these times, with inflation sky-high and interest rates sharply rising, housing remains good insurance for the future.
However, before buying, they value that it fits within the budget (58 %), but also that it has a terrace or a good orientation (40 %). Nevertheless, and especially as a differential factor in the last two years, what has considerably increased is interest in elements such as a swimming pool, garden, communal areas, and good road access, which have increased by between 13 and 11 percentage points.
But buying a second home is a complex process. We must be fully focused on the operation. Therefore, we will summarise what you should consider before embarking on the adventure of acquiring a second home.
Can you afford a second home?
If you already have a mortgage For your first home, you need to think it through very, very carefully. Buying your second home will require a new mortgage or an increase in equity from your first. Therefore, the most important thing is to study your financial situation thoroughly, taking into account how much money you spend each month, how much you earn, and how much savings you have available to contribute towards the purchase.
We must take into account that The bank usually only grants, at most, between 60% and 75% of the property's valuation.
2. Where is the best place to acquire it?
If what you're looking for is to buy a second home for you and your family to enjoy, it's essential to look for a property in the place that makes you happiest. But if what you want is to buy to make a profit from it with a holiday or traditional rental, or to renovate and sell it for a higher price, it will be ideal to choose an area of interest., that can generate high profitability.
3. How much does it cost to maintain?
In addition to taking into account the purchase price and any renovations you want to carry out, you will also have to consider the fixed expenses. Even if you don't live there for most of the year, a second home has fixed expenses for property tax, electricity, water, gas, and community fees. We estimate that it will be around €2,000 per year, on average.
4. How far should it be from the first residence?
If what you want is to make the most of the property and get the most out of it, the ideal would be for that second home not to be too far from the first. That is, it allows us to disconnect from the overwhelming nature of living in the centre of a big city, but at the same time to get to that house be easy, fast and cheap.
5. What taxes will I have to pay?
Logically, buying a second residence will also require us to pay some taxes. When we file our Income Tax return, we will have to pay 2 % of the cadastral value of the property and the Property Tax (IBI).
Once you have analysed these issues, you will be in a position to decide What type of second home are you looking to buy? so that it truly adapts to your budget and your needs.
We hope all this information will be useful to you when renting your flat. Do you have any questions? You can write us a comment or contact by phone or email.
