Housing is no longer a place to rest but the epicenter of work for many citizens in the wake of the covid-19 pandemic. Given this situation, second homes are an ideal option for those who are now interested in an alternative place to rest and work remotely. Solvia points out five reasons to buy a second home this summer, such as a greater ability to negotiate price or an investment that can generate a return.
In addition, a study of the real estate network Comprarcasa figures a 9% average decrease in the price of used housing in the months of May and June, in the middle of the de-escalation. According to the data handled by the company, with more than 150 agencies distributed between Spain and Portugal, in the months prior to the summer potential home buyers proposed discounts of between 15% and 20% to owners interested in selling a residential property, although after negotiations between the parties the average reduction was around 9% compared to the initially published price.
The current market situation and the 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 this summer could be a great opportunity, both in the short and long term:
Rest and assured vacations. The summer of 2020 is being very different from previous years. The purchase of a second home in which to enjoy summer vacation, and face the future, in an environment itself, safe and comfortable is presented as a good option now. In this sense, the second home offers a change of scenery with respect to the habitual 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 due to the health crisis, new opportunities have arisen as some sellers have chosen to divest themselves of 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.
An investment bet that can generate profitability. Buying a second home that offers a change of scenery and a pleasant place to spend your vacations, or even where you can telework, can lead in the medium-long term to an increase in profitability in the event of renting or revaluing the property. Despite the arrival of the pandemic, renting remains a good option for profitability.
According to the Housing Market Indicators offered by 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, we must take into account the acceleration that the covid-19 has produced in digitalization and remote work. A fact that makes many consider living ‘permanently’ in less populated areas, thus increasing the demand for rent in those areas.
Personalized attention and more time to make decisions. The vacation months are presented as an ideal free time period for those interested to explore the market and visit the properties. It is a time when both real estate agencies and sellers and customers themselves have more time and flexibility, which implies personalized attention and the possibility of making decisions in a more thoughtful way.
The fall of the Euribor, a factor that could benefit purchases: this indicator fell in July to -0.279%. This is the lowest level that marks the reference indicator for most of the mortgages in Spain since February, just before the coronavirus crisis broke out, and it moves away from the ‘rally’ of the first months of confinement, when it reached maximums since the end of 2016. From Solvia, they assure that interested buyers could benefit from better conditions when applying for a mortgage, being able to obtain more attractive variable interest rates.