Property for Sale in Tenerife

Buying a new home is likely to the largest investment you’ll ever make. If you’re buying in a foreign country, you need to choose the right estate agent; one you can trust and preferably one who knows the area extremely well.

Secondhometenerife are a renowned estate agent in Tenerife, with over 10 years of experience buying and selling property in the area. They sell property throughout the south of Tenerife in areas such as: Las Galletas, Palm-Mar, Los Cristianos, Las Americas, Chayofa and Aguilas del Teide, Fañabé, El Duque, El Puertito, and La Caleta till Golf Costa Adeje. With a fun and vibrant approach to their work, they can make buying property in Tenerife an absolute breeze.

Investing in Tenerife
A recent article by Pamela Heywood, 27 May 2007 states that “Despite the recent property crisis in Spain, Tenerife’s property sales are still rising”. It’s good new for Tenerife estate agents and even better news for investors.

At the moment, property values in Tenerife continue to rise whereas on the Spanish mainland they are expected to drop within the next year – year and a half. This is mainly down to issues like “over supply of property, corruption scandals and land grab issues”.

With an increasing lack of confidence in the Spanish mainland, buyers are seeking property sales elsewhere, the Canary Islands being the first obvious choice. The islands belong to Spain although they are not part of the European Union. They avoid all European customs charges and have some of the finest beaches in Europe.

Tenerife itself is know as the “island of Eternal Springtime” and has what’s described as a perfect year round climate. The government have limiting the supply of new homes on the island thus preventing the over building issues they now have in Spain.

People are now even selling up their properties in Spain and reinvesting in Tenerife. And why not! With year round sunshine investors can achieve high rental income all year round.

The threat of global warming – Tenerife’s “hot” future
Things certainly are looking hot for Tenerife. Global warming is set to have a major impact on the international property industry and it’s only a matter of time before speculation takes it toll.

However, research has shown that Tenerife will be “relatively unaffected with only a few more tropical storms and some coastal erosion”. Compared to other destinations the effects of global warming on Tenerife will have little, if any affect on the islands property industry. Tenerife still looks set to remain one of the hottest investment areas for this year and for many years to come.

Property for sale in Tenerife
Two of the most exclusive areas on the island are Fanabe and Palm Mar. In Fanabe, you’ll find some truly exquisite properties. For a Prestigious 4 bedroom, 4 bathroom beachfront villa with community pool and guest apartment expect to pay around £886,000.

Rental costs on the island are high, encouraging locals to buy their own place as soon as possible. Tenerife has the fastest growing resident population in Europe and accordingly there’s and increasing number of mortgage providers offering finance.

At the moment there are numerous English speaking estate agents on Tenerife selling everything from small cosy studios to luxurious 4 and sometimes 5 bedroom huge luxurious villas.

Two popular options are off plan and buy to let.

With off plan, you’ll have to pay an initial deposit, followed by installments at fixed dates until the project is completed. The advantage of this is that you only need a small mortgage. You can eventually borrow more money as the payments fall due. In this way, you enjoy substantial savings on interest.

In a buy to let situation, you buy a property and rent it out as soon as possible. Ideally the rent should cover the cost of your mortgage and if you’ve planned it well, you might even have some money left over. In order for this to be successful, you need to know the local letting market very well, so that you get guaranteed rentals.

Tenerife property has long been a popular investment option with UK buyers. It’s the closest island to mainland Europe where you get almost guaranteed winter sunshine. Investors are buying property for their own enjoyment as well as receiving a great return on investment. Tenerife enjoys an all year round season so you can rent out your property http://www.tate-properties.com/tenerife/property-for-sale.asp at peak season prices almost all throughout the year!

Tenerife Island – The island of “Eternal Springtime”
Tenerife is the largest of the Canary Island archipelago. It has one of the most spectacular and diverse landscapes you’re ever likely to see – From the mighty volcanic crater “Cañadas del Teide” to the extremely fertile valleys filled with bananas and tomatoes.

Tenerife is clearly divided into a very dry southern part and a very humid and green northern part.

In the centre of the island there’s Mount Teide – Spain’s highest mountain peak (and 3rd largest volcano on earth). Often snow-capped, it contrasts dramatically with the hundreds of bikini bathers and sandy beaches.

Tenerife is a walker’s paradise. It also has some excellent mountaineering opportunities. You can enjoy warm climbing and walking in Europe’s winter months. Tenerife’s national park has many other interesting and challenging summits to try.

Other outdoor activities include; surfing, windsurfing, paragliding, camel tours, diving centres and golf.

All this under a perfect climate, it’s no wonder Tenerife is described as one of the “last paradise isles in Europe”.

New Developments on Tenerife (What you’d expect to pay)
Here are some examples of the latest new developments (http://www.tate-properties.com/tenerife/property-for-sale.aspon the island…

1 bedroom Apartment for sale in Palm Mar
Well presented 1 bedroom, 1 bathroom.
Price: €156.450 (approx £107.897).

1 bedroom Apartment for sale in Aguilas del Teide
Brand new 1 bedroom, 1 bathroom.
Price: €156.000 (approx £107.586).

1 bedroom Apartment for sale in Los Cristianos
Brand new 1 bedroom, 1 bathroom apartment.
Price: €160.000 (approx £110.345).

Investing in Tenerife
Tenerife is suitable for all ages. It’s an island with great potential – both as a place to live and an area to invest in. Whether you’re looking for a new development or an existing property, you’ll find it here. There are numerous multi-lingual real estate agents that can help you find whatever you’re looking for.

Tenerife property is a very popular investment with UK buyers. It’s the nearest island to mainland Europe where you can get almost guaranteed winter sunshine.

Investors are buying property for their own enjoyment as well as receiving a great return on investment. Tenerife enjoys an all-year-round season so you can rent out your property at peak season prices for almost every month of the year!

Tenerife Property for Sale (Prices)
For a three bedroom, one bathroom apartment you’d pay (€195.000) approx £134.483. This property is located in a quiet location with large terraces and a communal pool.

There’s a bar/restaurant with large front terrace in a good position going for £105.000 (approx €152.250). the interior is 84m² and the exterior is 40m². It will be sold fully equipped with new electrics, extractor fan and new kitchen fridges.

Background (Tenerife Island)
Tenerife is the largest of the Canary Island archipelago. It has one of the most spectacular and diverse landscapes you’re ever likely to see – From the mighty volcanic crater “Cañadas del Teide” to the extremely fertile valleys filled with bananas and tomatoe fields.

Tenerife is clearly divided into a very dry southern part and a very humid and green north.

In the centre of the island there’s Mount Teide – Spain’s highest mountain peak (and 3rd largest volcano on earth). Often snow-capped, it contrasts dramatically with the hundreds of bikini bathers and sandy beaches.

Tenerife is a walker’s paradise. It also has some excellent mountaineering opportunities. You can enjoy warm climbing and walking during Europe’s winter months. Tenerife’s national park has many other interesting and challenging summits to try.

Other outdoor activities include; surfing, windsurfing, paragliding, camel tours, diving centres and golf.

All this under a perfect climate, it’s no wonder Tenerife is described as one of the “last paradise isles in Europe”.

New Developments on Tenerife
Here are just two examples of some of the latest new developments on the island…

1 bedroom Apartment for sale in La Caleta
South west facing one bedroom apartmeent.
Price: €215.250 (approx £148.448).

2 bedroom Apartment for sale in El Madronal
Brand new 2 bedroom, 1 bathroom apartment
Price: €280.000 (approx £193.103).

Tenerife buyers guide
Before you do anything, you should first get your N.I.E. (Numero de Identificacion de Extranjero) number. You need this if you want to open a bank account or have any other fiscal representation in Spain.

You’ll have to pay taxes and fees on all transfers of Spanish properties. The Notary will charge you a fee for preparing the Escritura and there is a further fee for registering the property in the new owners name.

In total you’ll have to pay approximately 10% in taxes and legal costs.

Capital Gains Tax is charged at various rates on the annual increase in value since the previous sale of the property.

Tenerife is suitable for all ages. It’s got amazing beaches and plenty of things to do and see. It’s an island with great potential – both as a place to live and an area to invest in. Whether you’re looking for a new development or an existing property, there are numerous multi-lingual real estate agents that can help you find it.

The Canary Islands belong to Spain although they’re not part of the European Union. They avoid all European customs charges and have some of the most amazing beaches in Europe.

The average air temperatures on the islands are between 18º and 24º C. The water temperature varies from 22º C in summer to 19º C in winter. So you can comfortably go swimming and sunbathing all year round!

Tenerife itself is often called the “Island of eternal springtime” and “one of the last paradise islands in Europe”. It has an incredibly diverse landscape with deserts, mountains, exotic fauna and flora, volcanoes, lush green forests and miles and miles of spectacular coastline and beaches. It’s no wonder investors and homebuyers are jumping at the chance to buy property in Tenerife.

Every year more and more people are choosing to escape the doom and gloom of northern Europe and set up home on this paradise island. With all kinds of properties for sale (family business, apartments, villas, commercial, studios etc) all over the island and numerous English-speaking agents, buying a place here couldn’t be easier.

Buyer’s guide
Tenerife has an expat community, of mainly English, German, Belgian, Dutch, Swedish and Finnish. There are also a lot of tourists from Denmark, Norway, Italy, France, Austria, Ireland and Switzerland. So rest assured, wherever you’re coming from, you’ll find a real estate agents that speaks your language.

The actual process of buying a property in Tenerife is relatively straightforward and can be done within a matter of weeks.

The first obvious step is to establish your budget. If you require a Spanish mortgage, you will be offered a loan of 70% of the purchase price or 80% if you hold a residence card. With some banks this offer will be based on the valuation of the property so if the valuation is a lot higher then the purchase price, it may in fact be possible to secure a mortgage of up to 100%.

Spanish banks charge between 1 and 1.5% of the loan amount as an arrangement fee. This may sometimes be avoided if buying a property on a new development and taking over the builder’s mortgage.

Investor options (Off plan or Buy to let)
If you really want to get the most out of your investment and don’t immediately need to live in the property, off plan property is the best way to go.

Normally you’ll have to pay an initial deposit, followed by installments at fixed dates until the project is completed. The advantage of this is that you only need a small mortgage.

In buy to let situation, you buy a property and rent it out as soon as possible. Ideally the rent should cover the cost of your mortgage and if you’ve planned it well, you might even have some money left over. In order for this to be successful, you need to get to know the local letting market.

Targeting short-term visitors during peak seasons can bring in high rents over a short period (normally July and August). On the other hand, if you have a year round tenant you’ll receive a (lower) fixed rental income for every month of the year.