Thanks to SecondPROP, you have the opportunity to buy a house as a second property in shares (up to 8 shares). By entering as the owner of one of these shares, you have the right to enjoy the house in the periods you choose booking directly through our app.
In this article, we are going to break down all the existing expenses when you buy a house in SecondPROP, so you will know, in detail, what price it is to enjoy your second home.
Keep in mind that all prices reflected here have taxes included when applicable.
What happens when I buy a share for a house in secondPROP?
Imagine that you are interested in a valued secondPROP home whose purchase-sale price is €1.000.000. We will take the total amount as an example to make it easier to calculate all expenses.
We will have to add several fixed expenses to the purchase-sale price of €1,000,000:
- The ITP (Patrimonial Transfer Tax), which varies according to the Autonomous Community).
- The expenses of fitting out the home.
- The fee for the management expenses of SecondPROP.
Next, we are going to break down all these expenses, one by one. Remember that we have taken a home valued at €1.000.000 as reference (it would be €125.000 for each share).
The ITP: what is this tax and how to calculate it?
ITP is the acronym for “Patrimonial Transfer Tax”, an amount that must be declared in the Tax Agency and that is set as a percentage of the sale price.
The ITP varies according to the Autonomous Community.
For example, in Andalusia, between 8% and 10% applies, depending on the different value ranges of real estate: 8% up to €400.000, 9% between €400.000, and €700.000, and 10% from €700.000 and up.
Currently, Andalusia has lowered the fixed rate to 7% only until the end of 2021.
Returning to our example of the €1.000.000 house, the total price of the ITP will be €70.000, this is €8.750 per participation.
What are the costs of fitting out a home in SecondPROP?
Another expense that must be added to the total price is the fitting out of the house. Here, we include all furniture, individual bedding, household items, individual storage cabinets, necessary technology (appliances, audio, TV, etc.), and minor repairs.
The price of this conditioning depends on the state of the house (for example, if it is furnished or not), and the interior decoration project that has to be carried out.
In houses in excellent state of conservation, such as the ones we have in SecondPROP and previously furnished, we would be talking of about €4.000 per share, on average.
How much does SecondPROP charge for the sale and purchase procedures?
Finally, to the total purchase-sale price, we will add the secondPROP feeregarding all the services performed by our agency.
The SecondPROP fee for this case would be €15.000 per participation, and that price includes all the necessary steps to start up the purchase and sale system, and enjoy your second home.
At SecondPROP, we take care of everything you need: we create the limited partnership between all the owners, we manage the powers of attorney, notary, and advisory expenses, and all legal and financial aspects: from the company bylaws to the partners’ agreement, and the agreement for the enjoyment of the house among the owners by obtaining the NIE for non-residents, the deposit agreements, pre-agreements, property administration, purchase-sale deeds…
All this, so that you only think about what is important: enjoying your home!
In addition, that price also includes the necessary insurance and protection against homeowner defaults.
What costs are there (in total) to buy a home in SecondPROP?
Taking the example home as reference, this is the total breakdown of expenses for the purchase of your second home:
|ITEM||ITEM PRICE PER 1/8 SHARE|
|House purchase-sale price (€1.000.000)||125.000 €|
|ITP (example: 7% in Andalusia)||8.750 €|
|Conditioning expenses||4.000 €|
|SecondPROP fee(all included)||15.000 €|
|TOTAL PRICE||152.750 €|
Therefore, if you wanted to acquire a share of a total of eight, the purchase price of your eighth part of the house would be €152.750, which would allow you to enjoy the house for more than six (6) weeks a year (45 days).
If you wanted a quarter of the house (with 90 days of enjoyment per year), the cost would be €305.500.
In another article, we will talk about the monthly maintenance expenses of the house, in more detail.