Who this guide is for
Prospective buyers thinking about a second home—whether for holidays, retirement or to generate rental income—will find a practical checklist here to compare cash flow, tax consequences and legal or technical risks. Use this before signing a purchase contract so a promising-looking property doesn’t
become a long-term burden.
Start with a realistic framework
Buying a second home mixes lifestyle choices with financial calculations. Before you fall for charm or views, build a conservative, numbers-driven picture of how the property will perform.
- – Decide the primary purpose. Is this mainly for your own use, a long-term capital hold, or a rental play? Each goal needs different metrics: proximity and comfort matter most for
personal use, while gross rental yield, cap rate and occupancy are central for an income strategy.
- Create three scenarios: optimistic, base case and conservative. Model seasonality, void periods, maintenance spikes and a few one-off repairs. Stress-test for extended vacancy and unexpected capital works.
- Make assumptions explicit. List taxes, funding costs, insurance, management fees and vacancy buffers so you aren’t comparing apples
to oranges.
- Build a spreadsheet that captures one-off purchase costs and recurring charges, then present net yields after all expenses. Rely on local data for rent and demand benchmarks—don’t base forecasts on looks alone.
Legal, urban and technical due diligence
Do this before signing anything. Skipping it is the most common path to post-closing headaches.
The essentials
– Verify titles and permits. Obtain certified copies of the deed, building permits and any regularisation paperwork. Confirm the property’s registered layout and declared use match the physical unit.
– Commission a technical survey. Inspect roof, facade, plumbing, heating and electrical systems to reveal near-term capital needs. These can materially change whether the deal stacks up.
– Check for unresolved permits or sanatoria that might block financing or invite penalties.
Condominium accounts and rental rules
– Ask for the condominium accounts for the last three years, minutes of meetings and details of the reserve fund. Look for planned extraordinary works, outstanding debts or litigation that might become your liability.
– Confirm local and building-level rules on renting. Municipal zoning, tourist registration, occupancy taxes and bylaws can restrict short-term lets or impose minimum lease lengths—these rules directly affect income potential.
Tax treatment, recurring charges and financing
Taxes and finance terms change the math more than most buyers expect.
- – Map the tax regime. Identify registration taxes, VAT risks (if buying from a developer), ongoing property taxes and which fees are deductible. Some jurisdictions do not allow mortgage interest deduction for second homes—model that explicitly.
- Include all recurring costs: property tax, waste tax, insurance, management fees, utilities and both ordinary and extraordinary maintenance.
- Review mortgage terms. Interest structure, covenants and serviceability tests influence monthly cash flow and the time it takes to break even.
Operational recommendations
Practical steps to improve outcomes and reduce surprises:
- – Hire a local tax adviser and a notary early. Get written confirmation for any tax positions or regularisation steps.
- Use professional property management if you plan to rent. Good managers can boost occupancy and ensure compliance, and their fees should be treated as an operating expense.
- Build reserves. Set aside funds for major repairs, periods of vacancy and unforeseen levies from the condominium.
- Prioritise liquidity and access. Properties that are easy to reach and close to services sell more readily and generally produce steadier rental demand than secluded bargains.
What to verify before purchase (quick checklist)
– Title and permits: certified, verified documents.
– Technical report: recent condition survey of structure and major systems.
– Condominium statement: up-to-date account of reserves, pending levies and planned works.
– Municipal rules: zoning, permitted uses and short-term rental regulations.
– Post-acquisition budget: taxes, utilities, insurance, management fees and a repair contingency.
Implementation plan for owners and investors
Turn your analysis into an operational plan and review it regularly.
- – Set a multi-year maintenance budget that covers routine upkeep and capital renewals; review it annually.
- Define KPIs and reporting cadence: track cap rate, occupancy, gross and net yields, and maintenance variance. Review performance at least twice a year.
- If you delegate management, put service-level clauses in the contract: response times, reporting frequency and performance incentives or penalties.
- Diversify and rebalance. Avoid concentration risk by spreading holdings across locations or property types when appropriate.
Common pitfalls to avoid
– Underestimating one-off purchase taxes and extraordinary condominium assessments.
– Relying on emotional appeal rather than data-driven forecasts.
– Ignoring local rental restrictions that drastically reduce revenue.
– Failing to build a contingency reserve for repairs or prolonged vacancy.
Start with a realistic framework
Buying a second home mixes lifestyle choices with financial calculations. Before you fall for charm or views, build a conservative, numbers-driven picture of how the property will perform.0
Start with a realistic framework
Buying a second home mixes lifestyle choices with financial calculations. Before you fall for charm or views, build a conservative, numbers-driven picture of how the property will perform.1
Start with a realistic framework
Buying a second home mixes lifestyle choices with financial calculations. Before you fall for charm or views, build a conservative, numbers-driven picture of how the property will perform.2