What you should know to buy a second home
If you are interested in acquiring a second residence, these are the aspects that you should take into account.
The first question you have to answer if you want to buy a second home is how much it will cost and if you can afford it. Put numbers on your income and usual expenses, see how much money you have saved and Calculate if you are going to have to resort to a mortgage loan and what the monthly payment will be. Keep in mind that mortgages for a second home tend to finance a lower percentage than those for the habitual home.
There are those who buy a second home because they want to have a place of rest outside the city, and there are those who buy it thinking about making an investment, to put it later on for rent (either long-term or tourist). Both options are valid: you just have to choose the one that suits you best.
Again the location here is a relevant factor when setting the market price for the acquisition of a second home, but also the rental price if this is the use chosen.
Most of us Spaniards think of a place of sun and beach to locate our second home. For this reason, the areas with the best climate (the Mediterranean coast, the Balearic Islands or the Canary Islands) are those with the greatest offer. But maybe our dream is to have a house in the country or in the mountains. Decide based on your tastes, but knowing that the weather conditions of one place or another will influence the use that you can give to the house: for the whole year or just for a few months.
To get the most out of your second home, the ideal would be that you could enjoy it every month, not only during your summer holidays. And for that, a key factor is the distance at which it is from your usual home: close enough to allow you to make weekend getaways, and at the same time far enough to disconnect from your daily life.
Keep in mind that even if you do not live in it all year, your second residence will generate expenses for 12 months. The Organization of Consumers and Users (OCU) calculates an annual outlay that can reach € 1,791 to meet the minimum consumption of electricity, water, gas, and community expenses (if your home is in urbanization or is a flat ). Grab a pencil and paper and do a quick sum to estimate the cost of maintaining this second home.
Another aspect to consider when acquiring a second residence is that its taxation is different from that of a habitual residence. In fact, being an owner implies the obligation to make an imputation of income in the personal income tax return, equivalent to 2% of the property’s cadastral value (or 1.1% if the value has been revised in the last 10 years). Also, add the payment of the IBI (Real Estate Tax) receipt every year.
Once all these questions have been reviewed, you will be more clear about what home you want and where you want it, and you can start looking for the second home that is right for you.