Buying a holiday home in Spain is no longer a taboo
27.09.2018A holiday home on the Spanish coast that has long since ceased to be reserved for pensioners and is no longer taboo.
On the contrary, the market for holiday homes is booming. If we look at the developments surrounding the various second home fairs, the market has gained momentum since the spring of 2016. This has to do with low interest rates, but also with declining unemployment and the growth of the economy. That makes people think: we are now going to invest in Spanish Real Estate instead of leaving the money in the bank.
We now also see small self-employed people who are puzzling with their pension pot, or young families who want to use their savings. It is certainly no longer just the over-65s.
Meanwhile three quarters see the second stay in Spain as an investment, five years ago people mainly bought a holiday accommodation for their own use.
Obviously, Spain is one of the popular countries for purchase holiday
Spain is the most popular country for the purchase of a holiday home, followed by the Netherlands, Austria, France and Italy.
Most people buy a holiday home in order to be able to use it regularly. But renting it out can yield a nice amount. A net yield of between 2 and 4 percent is real, but it depends of course on how much you rent it and in what region it is. Inquire with the real estate specialists from MedVilla, your new construction specialist on Costa Blanca and Costa Calida.
We see people visiting our office every day looking for a second home in Spain. It is mainly people around the age of fifty who are looking. In the higher price categories they mainly want a holiday villa for their own use, among which people often plan to also rent their home.
The asking prices for holiday homes on the Costa Blanca range from about 120,000 euros for a 1 bedroom new apartment to a million for a luxury villa in an exclusive resort such as Las Colinas Golf. This involves larger, detached houses.
The average transaction price is 4 percent more than in the previous year, but still less than in the peak years
Investing in a holiday home in Spain is value-added
A holiday in Spain yields more than money on the bank. Such a property is also valuable and stones are something tangible. A price increase of around 7 percent per year over the last twenty years is real
To buy a holiday home in Spain you need sufficient equity
A holiday home in Spain is not for everyone. Taking a large bag of your own money is often necessary because banks are not so keen on financing homes in Spain since the crissis of a few years ago. You are also not entitled to mortgage interest relief. What you sometimes see is that people raise the mortgage on the property they already have, in order to finance a second home abroad.
In order not to incur unforeseen costs, the brokers of MedVilla will also point out the small print. You must also take into account Owners' Associations, all additional costs when buying a property in Spain
You have to assume that you can get about 70 percent of funding. You must therefore have equity. Moreover, you have to realize that money that is in stones can not simply be taken out of it if you still need your financial resources to be urgently needed.
Also take a good look at the other fixed costs after purchase that come with it, such as insurance, taxes, the community costs, etc ... but we will gladly advise you on that.