When we buy lottery, we always like to imagine what we would do if we won the raffle. Especially when talking about the famous Spanish Christmas Lottery 'el Gordo'. And most of the time, buying a property comes to mind. In some cases, it can be buying our first home. In others, it is getting rid of the mortgage. Also, some people dream of a second residence for the holidays.
Investing the Christmas Lottery in property: what to take into account
Whatever the dream, if we're lucky and win, it is essential not to rush. And the best way to get your property investment decisions right is to be well-informed and analyze. What should we consider?
• Firstly, we have to assess the actual amount we can get. In short: a tenth winner in the El Gordo de Navidad raffle means a prize of 400,000 euros. But, after paying the corresponding taxes, the amount is reduced to 328,000 euros.
• Secondly, you must not forget all the expenses associated with home purchasing: taxes, notary, registration, etc. They represent between 10% and 12% of the property value.
• Lastly, it is necessary to consider the property will have maintenance costs. We recommend calculating expenses to ensure you can afford them throughout the years.
How to invest the Christmas lottery prize
Investing in housing is always interesting. In fact, for investors, it is a safe value. What are the advantages of doing it? In the case of a first home, it allows us to cover all the initial payments and, above all, to reduce the mortgage if the chosen home exceeds the profit obtained by the lottery.
For their part, those who already own a home can redeem the mortgage. However, there would be an exception for the mortgages signed before 2013. In those cases, it is possible to apply a 15% deduction over the amount redeemed per year, up to a maximum of 9,040 euros.
What would be the alternative? Keep the mortgage to maintain the tax deduction, and invest the Christmas lottery in a holiday home to enjoy it yourself or to rent it.
And if you get lucky and win the jackpot, what home would you buy?
The real estate offer is very extensive. With the 300,000 euros that would remain available, after discounting taxes and expenses associated with the purchase, you can buy a home to live in, rent or use as a second residence.
Here we leave you a sample of fantastic homes for investing in the Christmas Lottery. Which is your favourite?
Stunning apartment in the heart of the Costa del Sol – €298,000
Spectacular bungalow in Benidorm, the liveliest town on the Costa Blanca – €239,000
Beautiful apartment in the heart of Barcelona – €260,000
Sensational house in an incredible location, Mallorca – €295,000
Charming penthouse in the Canary Islands – €239-000
These are just some examples of the real estate offer you can find at SpainHouses.net. You'll find all kinds of properties you could buy with the Christmas Lottery. Do you want to see more?
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