What to Consider when Buying a Second Home?

Acquiring a second home is a goal that many people consider, whether to enjoy it during vacations or to allocate it to rent. Next, we will address all the issues related to the important aspects to take into account when buying a second residence.

What is a Second Home?

A second home consists of a second residence acquired by a person who already owns a previous one, and in general, is not intended to be their habitual residence. This type of housing can have various purposes, such as being a vacation residence, being rented to other individuals or family members, or even being used as a tourist apartment.

What is the Difference between a First and Second Home?

It is common to confuse a first residence with a second home. One of the most common questions is whether you can use the second home as a habitual residence. The answer is yes, but certain requirements must be met, such as being registered in this second residence.

In the event that it is desired to use it for tax domiciliations, the owner must reside in this second home for a continuous and minimum period of three years, and it must have been permanently inhabited for a period not exceeding twelve months.

How to Buy a Second Home with a Mortgage?

Buying a second home with a second mortgage in place requires a careful evaluation of the feasibility of the purchase. It is important to evaluate current income and expenses, including the existing mortgage, to determine if there is sufficient budget to acquire a second home.

In the event of requesting a second mortgage, it must be taken into account that the conditions imposed by the bank are usually more demanding, since the risk of default is higher. Generally, the bank can grant a maximum of 70% of the mortgage for the acquisition of a second residence, and the applicant must be prepared to pay the remaining 30% as a down payment for the purchase of the property.

What are the Expenses Associated with the Second Home?

Acquiring a second home implies a series of expenses, both during the acquisition process and to ensure its maintenance over the years. In addition to the initial cost of the purchase, which may include 10% VAT in the case of a newly built property, and between 4% and 10% of the Property Transfer Tax if it is a second residence, there are also other expenses related to the sale of the property, such as notary procedures, property registration and management.

In addition, it is recommended to calculate the annual cost of maintaining the supplies and services necessary to prepare and protect the second residence. This estimate should take into account the minimum costs of electricity, water, gas, community fees, garbage taxes, insurance and the monthly mortgage multiplied by twelve months, as well as the corresponding IBI. Adding these costs, you can reach the total annual expenses associated with the property.

Is it Worth Buying a Second Home?

Buying a second home is a significant decision and it is natural to wonder if it is really worth it. Below, we list some of the advantages and disadvantages of this decision:

Advantages of Buying a Second Home:

• Allows you to have your own accommodation for vacations.
• Represents an investment towards the future.
• Can generate an economic return through rent.
• Increases movable assets.

Disadvantages of Buying a Second Home:

• May involve additional debt.
• Limits the destination of use to a single vacation destination.
• Represents a financial risk, especially in uncertain economic periods.
• There is a risk of illegal occupation during periods when the home is not used.
• Implies an increase in annual fixed expenses.

Buy Second Home

If, after evaluating all these aspects, you are interested in buying a second home, at Espígul we are here to help you find the second residence that best suits your needs and desires. We have a wide selection of properties, both newly built and second-hand, in different locations. Whether it is an apartment in the mountains, a house on the coast or a flat in an urban environment, our team of real estate advisors will accompany you throughout the process to make your dream of having a second home come true. Get in contact with us without obligation to evaluate your needs and find the perfect solution for you.