A survey by lender, Norwich and Peterborough, has found that 75% of people in the UK would consider buying a holiday home despite the fact that many are predicting interest rate increases etc. Of the balance of 25% who already own, 7 out 10 would buy another.
Our view
Be very careful. Most people have not even thought of the capital gains tax issues. On top of this, the market appears saturated with hundreds of holiday lets vacant throughout the year.
You only have to read through the classifieds of English language Spanish newspapers such as The Sur and the Town Crier to see the hundreds of properties for sale and rent.
Has the bubble burst? If you buy a holiday home to use for your pleasure then great!
If you buy as an investment then do your homework.
Read our fact sheet on capital gains tax and second properties.