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.