The Spanish property market has seen a growing interest in the purchase of second homes, either as an investment or as a holiday retreat. However, before embarking on the adventure of acquiring an additional property, it is essential to know both the costs associated with its maintenance and the most suitable times to make the purchase. In this article, we break down the main costs and analyse the best times to buy a second home.
What are the costs of maintaining a second home?
Buying a second home not only involves the initial outlay for the purchase, but also a series of recurring expenses that are important to consider in order to avoid surprises. The main maintenance costs include:
• Mortgage payments : If you finance the purchase with a mortgage, you will have to cover the monthly payments. On average, Spaniards spend 6,461 euros per year on the mortgage payment for a second home .
• Real estate tax (IBI) : This municipal tax varies according to the location and the cadastral value of the property, with an average of 88.96 euros per year, although in some localities it can exceed 150 euros.
• Community fees : Even if you do not live in the property on a continuous basis, you must keep up to date with the community fees, which can range from 20 to 200 euros per month. These fees cover the maintenance of common areas such as gardens and swimming pools.
• Basic utilities : Even if the house is not used regularly, utility costs such as electricity, water and gas are a fixed cost. It is estimated that these costs add up to around 584 euros per year.
• Home insurance and rubbish collection fee : Home insurance for a second home costs an average of 180 euros per year, while the rubbish collection fee varies between cities, with an average of 117 euros per year.
When is the best time to buy a second home?
The summer season has established itself as one of the best times to buy a second home, especially in tourist areas:
• Summer discounts and promotions : Real estate agencies take advantage of the holidays to launch promotions and discounts, adapting to the schedules of potential buyers. This makes summer an ideal opportunity to acquire properties at competitive prices.
• More time to search : During the holidays, buyers have more time to visit properties and compare options. This allows them to make purchasing decisions more calmly and without the pressure of daily routine.
• Growth in sales : According to a report by Taylor Wimpey Spain, 60% of home sales take place in summer, with 40% concentrated between June and September and 20% during Easter. This shows a clear interest from buyers in acquiring properties during these dates.
Tips to reduce maintenance costs
Although maintaining a second home can be a significant outlay, there are various strategies to optimize costs:
• Review service contracts : Comparing rates and changing suppliers can lead to significant savings on electricity, water, gas and insurance costs. Adjusting the contracted electrical power can also reduce your bill.
• Address minor repairs on time : Fixing damage before it becomes a major problem can prevent high costs in the long run. Investing in regular home maintenance ensures that your home is in good condition when you need it.
• Consider holiday rentals : Renting out your second home during periods when you are not using it is a way to offset expenses. According to the Bank of Spain, the residential rental market offers an average return of 4.4%.
Things to consider before buying a second home
Before you jump into the purchase of a second home, it is important to take into account certain key factors:
• Financing conditions : Mortgages for second homes usually have more restrictive conditions than those for primary residences, so it is essential to compare offers and understand the terms before committing.
• Know the area well : Researching the local market and consulting with real estate professionals can be crucial to determining the right price and avoiding overpaying.
• Legal status of the property : Checking the status of the property in the Property Registry and ensuring that it complies with all building regulations can avoid legal problems in the future.
Conclusion: A long-term investment with potential
Buying and maintaining a second home in Spain can be a profitable investment, both to enjoy on vacation and to obtain an additional source of income through renting. Knowing the maintenance costs and choosing the right time to buy are key aspects to optimize this investment and enjoy a property that meets your needs and expectations.
