During the COVID-19 pandemic, in many cases being at home has ceased to be a place to rest and has become the epicentre of work for many people across the world. Given this situation, second homes are an ideal option for those who are now interested in an alternative place to rest and work remotely. With the help of the real estate company Solvia, let's have a look at 5 reasons to buy a second home in Spain this summer, with advantages such as a greater ability to negotiate the price or an investment that can generate a return on the cards.
In addition, a study by the real estate network Comprarcasa puts the average drop in the price of second hand homes in Spain at 9% during the months of May and June, in the midst of a downward spiral. According to the data handled by the company, with more than 150 agencies spread throughout Spain and Portugal, in the months prior to the summer, potential home buyers in Spain proposed discounts of between 15% and 20% to owners interested in selling a residential property. After negotiations between parties, the average reduction was around 9% compared to the initially published price.
The current market situation and new interests in the demand for housing make this summer an ideal time to buy a house of this type. Given this situation, Solvia's experts point out 5 reasons why buying a second home in Spain this summer could be a great opportunity, both in the short and long term:
- Rest and assured holidays. The summer of 2020 is proving to be very different from previous years. Buying a second home in Spain where you can enjoy your summer holidays, and looking to the future, in your own safe and comfortable environment, is a good option now. In this sense, a second home offers a change of scenery with respect to your main residence and an environment in which the owners are responsible for guaranteeing the relevant security measures.
- Good opportunities and more negotiation capacity. After a few months in which the real estate sector suffered a slowdown in its activity in Spain due to the health crisis, new opportunities have arisen as some sellers have chosen to sell off properties in order to obtain greater liquidity or by changing their interest in certain assets. This practice will be beneficial for buyers, as they will have more negotiating margin to acquire properties at more affordable prices.
- This is an investment that can generate a return. Buying a second home that offers a change of scenery and a pleasant place to spend your holidays, or even where you can telework, can lead to an increase in profitability in the event of renting or revaluing the property in the medium to long term. Despite the arrival of the pandemic, renting remains a good option for profitability. According to the Housing Market Indicators offered by Banco de España (the Bank of Spain), the gross return on rent in the second quarter of 2020 - after the arrival of the pandemic - was 3.7%; the same value as the previous quarter and only two tenths of a percent below the same period in 2019 (3.9%). In addition, it is necessary to consider the acceleration that COVID-19 has produced in digitalisation and remote work. A fact that makes many consider living 'permanently' in less populated areas, thus increasing the demand for rent in those areas.
- Personalised attention and more time to make decisions. The holiday months are presented as an ideal free time period for those interested in exploring the market and visiting properties. It is a time when real estate agencies in Spain, as well as private sellers and clients themselves have more time and flexibility, which implies personalised attention and the possibility of making more thoughtful decisions.
- The fall of the Euribor, a factor that could benefit purchases: this indicator fell to -0.279% in July. This is the lowest level the reference indicator for most mortgages in Spain has recorded since February, just before the outbreak of the coronavirus crisis. The experts at Solvia ensure that interested buyers could benefit from better conditions when applying for a mortgage and that now may be the time to get more attractive variable interest rates.