Is it worth buying a second home?
Escaping from monotony is necessary: rest, disconnect and recharge batteries. Some people do it traveling, but many others prefer to have a place of their own for it. An exclusive place to spend weekends, vacations or where to retreat during your retirement. A place among pines, caressed by the sea breeze, or the opposite, in the bustle of the city. Be that as it may, the search and acquisition of a second residence is something that many people consider.
As a result of the COVID-19 pandemic and the telework boom, many people, besides renewing their first residence, sought to acquire a second home. Are you considering this last option? Read on to find out if it is worth investing in a second home.
What is considered a second home
If you are thinking about buying a second home, it is important that you know how it differs from a first residence, as it is a relevant issue both for related taxes and for the bank in case you want to request financing.
A second home is one that is acquired when you already own another one. In some cases, it will be considered a first residence if certain circumstances arise, such as:
- Reside in it for a continuous period of 3 years or more.
- Inhabit it permanently for at least 12 months from the date of purchase.
The second home as a usual residence
A doubt that usually arises at the time of buying a second home is to know if it can be categorized as a usual residence. And the answer is yes.
Your second home can become your usual residence. For this, you will only have to register in it and communicate it to the administration. Turning this new residence into your fiscal domicile will allow you to deduct taxes, since only the usual residence allows you to do so.
Investing in a second home, yes or no?
Acquiring a new property always makes us doubt, for this reason, we will tell you some information that will help you make the right decision. Is it really worth buying a second home? Let's take a look.
Impact of covid on the sale of second homes
In the wake of the pandemic, the sale of real estate rised. A large amount of the population was looking to change homes, and others were looking for a place to escape during their free time.
This is reflected in the data: since the pandemic, the homes that have been purchased have been more spacious and located, above all, in rural areas or near the sea. This has been the case of the Costa del Sol, which has increased its demand exponentially in recent years.
After the pandemic, and in view of an expected rise in prices, the purchase of second homes has rised, especially by foreigners who are looking for a place to enjoy the good weather, culture and tranquility of the Spanish coast.
Is it profitable to buy a second home to rent?
When buying a second home, you must know if you are going to use it as a sporadic place of residence or as a long-term investment with the idea of making its cost profitable.
For us, both options are an investment. If you decide to acquire a new property to spend your free time in it, be it vacations, weekends or long periods, you will avoid the expenses associated with a normal getaway. In addition, it is an investment in tranquility and disconnection.
On the other hand, you can make the purchase of a second home profitable by renting it, either as a vacation rental or as a residence.
Things to consider when buying a second home
We recommend you to consider three key points when buying your second home:
- Purpose of the home: is it going to be your new residence or just seasonal? Are you going to live in it or are you going to rent it out?
- Location and climate: is it a valuable area for real estate? Is it the climate I am looking for to live in? How far is it from my habitual residence?
- Costs and financial situation: do I need external financing? Or is my income/savings enough to cover it?
Your second home on the Costa del Sol
Recently, we told you 5 reasons why you should live on the Costa del Sol. An idyllic place where the climate, culture, gastronomy and exclusivity invite more and more people to acquire their second home here. Their place of rest, or simply properties in which to invest and make profitable.
If you were already thinking about this area of southern Spain to buy your second home, at Prime Invest we offer you a brief selection of properties that could perfectly become your second home:
Evergreen Homes: This residential complex is surrounded by a natural environment in El Chaparral, one of the areas most demanded by golf lovers. Evergreen Homes has gardens, swimming pools and sports facilities such as a gym and paddle courts. Enjoy its modern architecture and its bright interior spaces.
Artola Homes: These apartments are ideal for nature lovers. In an idyllic location, in Cabopino, just 15 minutes from Marbella and next to a dune reserve, Artola Homes offers the greatest luxuries in design and comfort: sports facilities, gardens, swimming pools and also, next to the beach and with access to more than 70 golf courses.
Célere Sea Views: A residential complex with modern infrastructure and sea views. It is located in Estepona, the perfect town for golf, leisure and sea lovers. Célere Sea Views offers you all the amenities you need to enjoy time with family and friends.
Have you decided that the Costa del Sol is going to be the place of your second home? If this is the case or you have any doubts, you can contact the Prime Invest team. We will offer you a personalized service totally adapted to your needs.