I love Majorca for its amazing mix of civilizations, its powerful international influence and mostly because it keeps its own authentic culture. - Michael Douglas.
If buying a second home on Mallorca is a dream, why not make it a reality? Affordable Mallorca gives you some excellent reasons why…and how!
Let’s set the stage, Shall we? #
You first came to Mallorca a donkey’s age ago for a friend’s 21st birthday party and fell in love with it. Alas, school beckoned so you went home with a warm, fuzzy feeling in your heart, vowing to return one day. You proceeded to grow up, get a job, have a family and buy a house. You travelled and managed to make it back to Mallorca a few times, this time with kids and spouse in tow, and still loved it, but for much different reasons than before. You even got a dog. By all standards, you’re a pretty solid person.
You’ve done all the normal life stuff and are basically content, but there was always that niggly thought in the back of your mind… what if?
What if we picked up stakes and left? What if we threw caution to the wind? What if we just did it?
WHOA, Turbo! Hold the phone. Before considering a complete life overhaul, why not think about investing in your future and look at buying a second home… here on the island! It may sound slightly nutty, and you may be thinking there is no way you could afford it, but the Affordable Mallorca team is here to tell you, (almost) anything is possible!
Why Invest? #
First and foremost, investing in property on Mallorca is a reasonably safe way to go. According to the STI Centre for Real Estate Studies, price increases on the island in recent years are part of a larger trend, and their research indicates this to continue over at least the next three years. This is not to say all properties in all areas are getting more expensive, only that the real estate market is healthy and is forecast to continue in that direction for the foreseeable future.
If you only plan to use the house from time to time, there is the possibility to get help with the mortgage by renting it out. The rules on short-term rentals on Mallorca are pretty strict, but if you’re willing to put in a little time with the government officials, a permit to legally rent can be obtained in many areas on the island. You need to engage a good architect or lawyer to make sure your property qualifies and to make sure the paperwork is filed properly.
Just know this doesn’t happen overnight, so patience is key here, but certainly worth it if it affords extra income. Another positive here is that regular use of the house ensures no major problem, like a burst pipe, goes unnoticed for too long, creating a costly and annoying situation.
The Practical Side of Things #
Now let’s take a look at the more personal reasons to buy a second home on Mallorca:
Your family and friends. Many of us adore the idea of having a getaway. A designated place where family and friends can gather for weeks or months every year. A place where holidays are spent filled with loved ones, cooking and eating together, laughing around a huge table, or swimming, biking and hiking together. A place where making merry in general is the norm and workaday worries are left behind at “home”.
And since “home” is probably a place where winters are wet and/or cold and summers are unpredictable, it’s fantastic to have a place where weather worries aren’t usually pressing. Mallorca is also a place people like to visit to start with, and if, by having a second home here, paying for accommodation isn’t a concern for them, then it becomes a super reasonably priced option for everyone.
Now for the real heart-string pulling thought. As kids grow up and have kids, this getaway becomes a place for a new generation to come to and love. My family getaway, for example, was a place we used to get excited about every time. We made friends whom we only got to see when we were there, and we looked forward to catching up with them and hearing how life has changed since our last meeting. Some of these people have remained lifelong pals. Pretty special, no?
It also becomes a place to retire to. Not just any old place…one that has a gorgeous climate, fantastic conveniences and facilities (hospitals, airport, shopping, etc), a warm local population and huge amount of entertainment options whether you are sporty or prefer an evening at the theatre!
How to Make it Work #
One word: budget. Make a budget for what you can afford and stick to it. You may need to make a few compromises, such a location, but as the whole island is a good bet and as nothing is too far away, you’re bound to find a great place in a great place!
If you’re not too fussed about living next to the sea, the centre of Mallorca has the most reasonable prices at less than €3,500/m2, plus the added bonus of having a lot of space, so it’s often easier to get a bigger house on a large plot, meaning you can have a swimming pool to make up for not being smack bang next to the water. Most places in the centre are only 20-30 minutes to the nearest beach, anyway, so access isn’t really an issue. The southwest remains the most expensive, with the average price being €7,200/m2 and the overall island average is about €5,400/m2.
Going back to renting out your second home, if being able to rent is the sole way to make the purchase possible, do your research. Some parts of the island, like Palma, are very stringent and getting a permit to rent may not be possible AT ALL. Fines are hefty (€20,000 and up) if you break the rules, so best to keep on the straight and narrow with regard to this point.
That being said, it is legal to rent out your home if you can prove it is not a “holiday rental”. The regulations on this are pretty straightforward. They say you must have a tenant renting for more than 31 days under an official rental contract. Additionally, you aren’t allowed to provide cleaning services or linen as part of the deal. Finally, you can’t rent using websites usually used for holiday rentals such as Airbnb, Trip Advisor, or Home Away.
To Sum it Up #
If you’ve been holding off on buying a holiday home on Mallorca for whatever reason, it may be time to toss the excuses all out the window and just start shopping. By this time next year, you could be in your new home, surrounded by your favourite people, wondering why you didn’t do it sooner!
#mallorcaproperty #buyingahomeonmallorca #familyandfriends #buyingasecondhome #propertyforsalemallorca #mallorcapropertyforsalebargains #mallorcarealestate
Please consult a trusted advisor or lawyer who can guide you in your personal situation.
By Stephanie Horsman
11 May, 2020