Any large asset acquisition is a big decision, the cost being a major consideration, of course. But the time and energy to manage a property is also in important factor. Most people in the US and UK buy and sell a home every five to seven years. In Germany, most owners will own a property long-term. Second homes in Mallorca, regardless of expat nationality, are usually kept longer because of the tax structure, the ability to find friends and family who love visiting the Island and will pay you to stay in your place plus the time you need to sell a property.
Find out here about the pros and cons.
Affordability must, of course, be taken into consideration when deciding to buy or rent, despite the plans of a person to stay in a home for a long time. Many financial experts suggest that buyers keep their monthly residential payments at 33% or below their gross monthly income. If buying would mean overstretching your means, rent.
By Memphis Holland
24 September, 2018