Keys To Investing In A Second Vacation Home
The last months of the year are a good time to invest in a second home, especially if you know the keys to make a good transaction. We give them to you.
Having reached the final stretch of 2016, this is a good time to reflect on everything that happened throughout the year and to start considering new resolutions for 2017. In addition to the typical ones, such as changing our habits for healthier ones, too It is a good opportunity to consider one of those dreams that we have pending, for example, the purchase of a second home.
It would not be crazy to say goodbye to the year by investing in a second home, as the data accompany it. During 2016, home sales have tripled compared to 2015, according to Tajarat properties.
Also, the price is starting to rally, although it is still at more than reasonable levels. If investing in a second home is one of those objectives that you want to cross off the pending list, these are the keys that you must take into account to do it properly.
Choose the right time: December is a good time to buy houses. In general, the whole autumn is so because after the summer season both prices and demand tend to fall. In addition, those owners who have properties for sale and have not been able to liquidate them throughout the year are usually more willing to sell at the end of the year.
Spring is also considered a good time to invest in real estate, as prices have not yet skyrocketed as they do in summer and are the best months of the year to get profitable from the property.
Analyze the state of the home: It is not the same to buy a new or off-plan home as a second-hand one. Each typology has its peculiarities. The recently built houses have in their favor that the qualities are usually better and the style of the property more modern.
However, they usually have a but: the location. In general, new works are usually built-in peripheral areas or new neighborhoods, since the city centers are collapsed. The opposite occurs with second-hand homes, they are better located but the construction materials may be of poorer quality or be damaged. Therefore, it is important to do numbers and see which type is the one that interests you the most.
Do you have to ask for a mortgage? Calculate the rate well: That the Euribor is at historic lows is nothing new. It has been like this for many months and it seems that this is going to be the trend for a while longer.
For this reason, for many buyers, variable-rate mortgages are very attractive today, but you have to be careful. In general, when you apply for a mortgage, you tie yourself with the bank for 20 or 30 years, so you have to be open-minded because although it is now under Euribor, it does not mean that it will always be.
Banks are currently offering many interesting offers on fixed-rate mortgages, with quite reasonable interest and with the assurance that you will always pay the same installment.
Request the expenses of the house: In the current real estate market, there are very interesting purchase opportunities in terms of value for money. However, sometimes these homes are tricky, as maintenance costs can be very high.
Therefore, it is important that before deciding to buy, you ask the owner for an estimate of the costs. For example, ask him for a copy of the Energy Efficiency Certificate with which you will be able to know approximately the electrical costs of the house.
It is also advisable to find out about community expenses, as well as what is paid annually from IBI (Real Estate Tax).
Look for an attractive place to obtain profitability: According to the TM Real Estate Group study mentioned above, the Mediterranean coast is the preferred one for second home investors. The reasons are quite obvious: it is an area of great beauty, with a multitude of leisure options, a good standard of living, good weather and spectacular beaches.
Taking into account that second homes are designed to spend the summer season and some bridges or weekends, it is logical that the Mediterranean coast is the most desired. This has several advantages, on the one hand, that it is a 100% safe guarantee as an economic investment and, on the other, that you can get a return, since the times when you are not going to use the property you can rent it.
If this last case is yours and you are looking for a home in the Mediterranean, at Grupo Esmeralda we can help you. We have the best real estate offer in Calpe and more than 30 years of experience that have made us the real estate leader on Costa Blanca.
We can get you the best properties in the city, guaranteeing you a good investment. In addition, we have a property rental service so that you can leave your house in our hands while you are not using it and thus you can obtain a return through leasing.
What should an agent value before selling a vacation home
These tips will help you achieve success in your second home sales operations, especially in the Mediterranean.
The real estate market has changed its trend and is heading towards stabilization. Since 2015, the sale of real estate has only grown and, added to the slight economic recovery, the demand for holiday homes has also resurfaced. Foreigners, but also nationals, promote the purchase of second homes, especially those located by the sea.
The Mediterranean coast and, especially, the blue world city Islamabad are the preferred areas to purchase a vacation home, according to the survey. The market, in this place, is therefore in full swing.
In this way, the sale of apartments in Calpe will be an easy task for a real estate agent, since other factors are added to the rebound in the industry that makes it a perfect municipality to sell a second home.
The reasons, in that sense, are numerous. We are talking, of course, about the plans that can be made, its climate, its landscapes or its gastronomy. All are points in your favor that will make it easier to sell apartments if you are looking to succeed in the most popular holiday area. However, before managing the transaction of a second home, any real estate agent should take into account aspects such as those detailed below.
1 – Appraise the value of the house. The owner of the property sets a price, but that amount can match his needs or what he wants to earn. Therefore, your job as an agent is to determine what is the amount that really has to be paid for the home, taking into account aspects such as the cadastral value, the bank’s appraisal in case there is a mortgage or property price from the same are.
2 – Study compliance with legal requirements. The first step is, without a doubt, to check that all the papers are in order. Thus, make sure that the owner of the house provides you with all the data of the property registry, the plan of the property and its location, the detailed description of the house to be able to do your management work and the deeds of the home. Likewise, one of the last measures is the obligation to present the Building’s Energy Efficiency Certificate.
3 – Examine the buyer. Your working time is worth gold and, therefore, it is not advisable to waste it on those clients who, with total security, are not going to acquire the property. In that sense, the analysis of the potential buyer is very important. There are three types:
- Those who will never buy, who are defined by tranquility and their valuations are insignificant and inconsequential. The best solution is to take them off in an elegant way.
- The insecure, who want to make many visits accompanied by different people to find out what they think. Your job, then, is focused on transmitting confidence and security to them.
- The completely determined, who are dedicated to disqualifying the properties in your portfolio while comparing them with others. The constant question is his favorite formula and his objective is to take charge of the negotiation, but your job is not to give in if the owner of the property does not accept the conditions offered.
4 – Prepare the contract. Have you got the buyer and seller to reach an agreement? Then, it is time to draw up the contract of sale. In it, the names of both must appear, the detailed description of the house and its location, how the charges are if there are any, the price in figures and in letters, the signal to be paid at the moment, the date of the deed before a notary public, the method of payment and the date of delivery of the keys.
5 – Check the good condition of the house. The physical appearance of the apartment has a significant influence on the success of the sale operation. In fact, there are techniques, such as home staging, whose objective is none other than to decorate the home to sell it.
Therefore, it is advisable to go through the property before offering it to check the good condition of the rooms and the construction materials, as well as the cleanliness of the different rooms. If not, he advises the owner to fix anything that is neglected to ensure maintenance.
6 – Check that the owner is up to date with the payment. It is very important to verify that the apartment is free of charges, liens or any type of debt, because, if not, the seller must be informed that it is he who must bear these obligations.
For this reason, you have to request the last receipt of the contribution or Real Estate Tax (IBI), a receipt from the community of neighbors and the receipts of services from the last months.
All these tips for real estate agencies are what you should take into account if you want your apartment sale operation to be a success.
However, if you still have any questions, get in touch with us to learn more about homes in the Mediterranean and Costa Blanca. We will be delighted to hear from you!