What is considered second-hand housing? + Infographic
As we saw in a previous article in our Real Estate News section, the sale of homes in Spain experienced an improvement, thus leading to three months of continuous increases. But this increase has been driven mainly by the operations on second-hand homes. And what is the reason for this sudden interest in already used properties?
After a detailed study of the situation and the data that the INE made to the public last month, in Inmogesco we have developed an infographic that explains the reasons for this increase. However, as we made the real estate infographic, we noticed certain "inaccuracies" in the data.
What is considered second-hand housing?
It is a very important nuance that must be clarified to understand why the sale of this type of property has increased by 41.6%.
If it has not been transferred within two years, it is considered used housing, even if it has not been inhabited at any time.
This could explain much of the data. As of today, we have a portfolio of new empty homes in Spain that exceeds what is necessary for self-regulation of the market, with Barcelona being the city with the largest number of these unoccupied properties (more than 46,500).
However, in the last two years there has been a decrease in the number of empty homes that has touched 5%, with which part of them have been transferred, possibly as second-hand housing since they are older than two years since its construction.
Those real estate that were in the possession of the bank and that were transferred to new winners have also been included in the percentage of second-hand housing operations, that is, they are considered used even when they have not been inhabited.
Be careful at this point, because it is very significant. If a homeowner sells a home to a tenant who is renting it after two years of rent, it will still be considered a new home. However, if this transfer occurs to an outsider, and not to the tenant, it will be considered used housing. Curious, right?
In many communities it is fiscally cheaper to acquire a second-hand home than a new one, since taxes on the first depend on each Autonomous Community, while for new construction the Government also charges a 10% VAT.
However, the INE itself attributes this increase in the sale of used homes to the greater ability of individual owners to sell their own homes, compared to that of professionals and developers. A very general statement and it does not have to be the case in all cases.
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What is your opinion on this real estate infographic? Do you think that the system you use to name what is considered second-hand or new housing influences the data collected? Tell us your opinion in the comments!
