What could be better than owning your own holiday apartment in Los Cristianos?
Getting it for a knock down price in a location that you are practically guaranteed rental income is better. Better still, even after all the expenses are paid (the mortgage, community fees and cleaning costs) the rental income still makes a profit of over €7,000 per year!
Sounds a bit like having your cake and eating it, doesn’t it?
One bedrooms apartments in the Sur y Sol usually go for between €140,000 to €150,000. Thanks to the current economy, prices have been cut to the bone and you can now pick up a lovely apartment in this popular holiday complex for only €104,500.
There are ground floor and first floor apartments available and they are all the same price – even the corner units. That means it is first come, first served as far as cherry picking the best apartment.
The Sur y Sol is 100 metres from the beach in Los Cristianos. It has three swimming pools, a kid’s adventure playground, a basketball court and pitch and putt all of which make it attractive to tourists and a great investment as a buy-to-let holiday apartment.
Don’t hang about on this one. If you are in the market for a Tenerife Property Bargain, you are unlikely to find anything better than this great offer on the Sur y Sol apartments. For more information and pictures, contact me here.
Tenerife estate agents are known as inmobiliaria. There are still many here servicing clients from the UK though quite a few folded at the beginning of the economic crash.
When buying property anywhere in Spain you are better to enlist the services of a professional. Debts are transferred with the property. An experienced agent will ensure that there are no such problems attached to your new dream home in the sun.
Similarly, if you recall recently there have been quite a few cases in mainland Spain where beutiful properties have been bulldozed to the ground leaving their owners in tears amid the rubble. Dodgy planning permission is usually to blame (and greedy councillors).
A professional agent knows which land is allotted for building purposes and which is not. He or she will steer you clear of anything that looks less than 100% legitimate. (or at the very least tell you what you are risking should there be a crackdown of illegal buildings in Tenerife in the near future).
The little amount of money you might save on the estate agents fees is really a false economy unless you know exactly what you are doing.
Searching for property in Tenerife is easy. Just go onto Google and type in “Tenerife property search” and you’ll find dozens of websites and real estate agents offering a huge range of villas, apartments, fincas, bungalows, commercials (shops/offices) and land.
Buying here is slightly different from the UK and can be a bit daunting at first. However, all the agents speak English (many of them are English!) and they can help make your property search and purchase as easy as possible.
Tenerife, the largest of the seven Canary Islands, is located in the Atlantic Ocean, off the west coast of Africa. It has a perfect climate, all year round, with most of the sunshine, the least clouds and highest temperatures in the coastal areas.
There’s two airports on the island – Los Rodeos (Tenerife Norte) and Reina Sofia Airport (Tenerife Sur).
The southern airport is located near the metropolitan area Santa Cruz-La Laguna and has flights to and from many national and European airports. The larger airport (Aeropuerto Reina Sofía) is the busiest on the island and the 7th busiest in Spain. This is where most of the regular/charter flights, fly to and from. Being an island, no matter where you are, you are never far away from either airport.
Tenerife is well equipped with a modern schooling system as well as top-class medical facilities.
In terms of schools, you have two options; private (fee paying) or state schools. There are several private schools in Tenerife, where children are taught through Spanish, English or German. State schools, on the other hand, are free and offer a wholly Spanish education.
In private schools, there is usually three terms per academic year and fees are normally paid at the beginning of a term. For state schools, parents traditionally need Residencias, along with other documents such as; birth certs; school reports; medical cards and passports etc. Requirements have eased considerably with the rapid changes made within the EU. It’s best to contact the school in advance to determine exactly what they need.
Like mainland Spain, Tenerife offers the same standard of medical care you’d find back in the UK. Here is a good page of information on Medical Centres in Tenerife
If you decide to invest here, in any kind of property, be it a villa, bungalow, finca, luxury apartment or even a plot of land, you’ll have to pay at least a 10% deposit if it’s a resale property. If you’re buying a new property direct from the builder the deposit starts at 25% of the full purchase price.
In order to open a bank account on Tenerife, you’ll need an NIE (National Identity) Number, which can easily be obtained from the local police station. Small queues can’t be guaranteed though – this is still Spain, after all!
Go online, speak to an agent or to anyone who’s made the move. There’s plenty of people who can help you with your search for property in Tenerife.
Tenerife is a lot more than just sun, sea and sangria. It’s one of the UK’s most popular holiday destinations, with an ever-increasing expat community and a booming property market.
While it is possible to fly to the island and hunt around on foot or pore through local Spanish newspapers looking for properties for sale by owner, the island is well served with professional and experienced English-speaking estate agents the greater majority of which have invested in sleek websites to showcase their extensive property databases making it entirely possible nowadays to do your Tenerife property search from the comfort of your own home.
There are other reasons beside convenience that recommend taking advantage of the services of Tenerife’s estate agents not least among them being that Spanish and British property laws and taxes vary significantly.
Without the professional assistance of an estate agent, you may end up buying a property which has significant debts attached to it which then pass to you, or find that your lovely little villa is in fact constructed on non-urbanised land and therefore is totally illegal.
So, with your heart set on owning your own home in the sun and having decided to seek the services of an estate agent, what next?
Whichever estate agent you choose is going to do a better job for you if you can offer them a clear idea of your requirements.
Do you know where in Tenerife you would like to purchase property?
For a small island, Tenerife’s various towns and villages have remarkably differing characters. If you want all the buzz and excitement of a tourist spot or are buying to let to holiday-makers then Las Americas or Los Cristianos are obvious choices.
If, on the other hand you want all the convenience of being near town but a little less in the thick of things, you might consider Costa del Silencio, Adeje or Las Galletas or Granadilla.
The south is blessed with glorious sunshine year round. That goes a long way to explain the huge popularity of south Tenerife as a tourist destination, but maybe the south of Tenerife is just too touristy for you and a quiet hamlet in the hills in the north would be more to your liking?
Moving to Tenerife with Kids
You will want to research the schools or nurseries (guarderias) available to you in the area you wish to live. Tenerife offers both private English and German education or Spanish state schools.
Travelling to Work
Given its size, you can drive round Tenerife in a day but who wants to commute for two hours a day? You will most likely be wanting to leave some of the pressures of UK life behind. Saying goodbye to long daily traffic jams would certainly be high on the list.
What kind of property would you like to buy?
Many of the residential complexes in Tenerife are quite breathtaking, especially to a first-time buyer from a colder country. Sparkling swimming pools, lush mature gardens and clean reception areas promise a dream come true of long, lazy afternoons and sundowners on the patio. With management of the facilities taken care of by the ‘community’ of owners you need only pay your monthly fees and enjoy your new property which is ideal for the majority of buyers from oversea.
Alternatively, you may envision taking on a rundown ‘finca’ and renovating it from scratch or a villa with private pool on the golf course at Golf Del Sur. The choice is endless but careful consideration of the pros and cons of each property type can mean the difference between a successful move to Tenerife or a quick return to Blighty.
How much do you want to pay?
Experienced estate agents can find all sorts of excellent properties to fit your budget but you must be realistic. While properties in Tenerife are still very good value for money, you really will not find a ‘four bedroom, seafront with large terrace for £100,000’.
Spending some time browsing through online property databases will give you an idea of average prices for property types and locations.
Gorgeous property with pool
Overseas Investments – Look Before You Leap
As more and more people look for new ways to build wealth and invest their money wisely, the popularity of buying overseas property grows. Buying a property for sale for investment purposes basically means that you buy to rent out which for obvious reasons is often far more profitable with overseas property.
Not only can you charge a higher rent to tourists but you also have a holiday home that is paying for itself or you move abroad and buy a property which will be worth a lot more than the purchase price a few years down the line.
The Spanish owned Canary Islands have always been a popular choice for the overseas property investor, especially the islands of Tenerife and Fuerteventura, but Cape Verde and Morocco are fast catching up, offering property for sale at more than reasonable prices. The procedure of investment abroad is relatively simple, but, if you have never bought an overseas property before it can be quite daunting to take those first steps.
What Does Moving Abroad Entail?
If you are thinking about making the move abroad, there is a fair chance that you already have business or professional involvements that are drawing you away to your future home, but if you are starting from scratch then having a plan well in advance will come in handy.
Think carefully about the area you want to live in.
In your mind, you may be imagining a sun-drenched life of increased leisure, lower taxes, and greater affluence, but there are other things that you need to take into consideration before taking this plunge.
It’s not a thing any of us like to do but it is always worth taking a while to contemplate the potential downsides to the venture. Simple things like, what if your new neighbours are noisy or rude or if the language barrier proves too great or if the more relaxed way of doing things (especially Spain’s infamous ‘mañana, mañana’ attitude) has the completely opposite effect on you. Be prepared for the possibility that this lifestyle won’t agree with you.
Moving away from your home takes you completely out of context.
Even though many areas now have a huge expat community ensuring that there are very few things that you cannot get and will miss from “back home”, you will be away from the ebb and flow of your familiar life and this does take some getting used to.
Even those whose reason for moving is precisely that can sometimes find it difficult to deal with. For some, distancing themselves from family, friends, and even from football, the movies, and drinkable tap water comes as a bad surprise.
Of course, with satellite television and the Internet this situation is a lot better than it used to be, still, think about the way you spend your time at home, then translate it into your new environment. How much will you miss? In what ways does your new home duplicate that lifestyle or improve it?
However much you complain about it now, the UK has an excellent health care and schooling system compared to many overseas countries.
This is something that is particularly important if you are moving your family. Make sure you do a thorough check of all the facilities available. If you have an existing medical condition, check out the local physicians to make sure they can care for you when you need them. What about dentists, eye care, and insurance? Before you leave, you have to make sure that these are all in order.
Fabulous Fañabe Property
Tenerife has long been a favourite holiday destination of North Europeans looking to escape their colder climates. In turn, their once or twice yearly flights to the sun have inspired many to consider owning a second home in Tenerife.
Over the years thousands have bought their very own dream property within which they enjoy the relaxed expat lifestyle that Tenerife has to offer.
Many more have bought apartments, town houses or villas as holiday retreats, for letting to hoilday makers or simply as an investment. Despite the recent economic downturn the property market in Tenerife and the rest of the Canary Islands is still healthy. .
Traditionally, cash buyers flocked to the island looking for a bargain, later, off-plan emerged as the preferred methods of property purchase. Nowadays, the expat property market in Tenerife is dominated by resales and a healthy resale market it is. Even in view of the recent economic downturn, properties are still frequently changing hands at prices well in excess of 300,000 Euros.
Many have found investing in Tenerife to be profitable due to the year round rental market and most buyers now look to borrow by way of a Spanish Mortgage to partially fund their purchase.
Unfortunately, there is very little in the way of regulation when it comes to Tenerife mortgages and the stories of bad advice and unhelpful banks are endless. The real problems arose when estate agents here realised they could earn an extra commission by introducing their buyers to the local banks. But, given that there are over 30 mortgage lenders and more than 100 mortgage products available in Spain, it was rare that an agent would ever introduce a client to the RIGHT bank.
Approach any estate agent in Tenerife today and they will tell you they most definitely can arrange your mortgage and there is no reason to use a broker. But the fact remains, there is no incentive whatsoever for an estate agent to find the best mortgage for your needs. They merely need to obtain any mortgage at any price to ensure you can purchase a property from them and they can earn their commission. They will usually have one bank which they take all their clients to and a secondary bank should the first one turn you down and that’s about it.
Utilising the services of a professional Mortgage Broker in Tenerife ensures you receive impartial advice. Given that bad mortgage advice can mean you pay double what you should be paying, it is well worth speaking to an independent third party and avoiding the conflict of interest and the problems that arise when an estate agent attempts to arrange your mortgage for you.
Some things to look out for when it comes to estate agents and mortgages in Tenerife:
- Exaggerated purchase costs, adding an extra one or two thousand Euros to the legal fees is an easy way for an estate agent to line their own pockets at your expense.
- “In-House” lawyers, if you are going to pay for the services of a lawyer, hire an independent third party – do not use the services of the estate agent’s own lawyer.
- Extended term mortgages, banks are keen to push your mortgage term as long as possible as the interest on a longer term increase exponentially. Don’t take a mortgage for more years than you need to.
- Interest only – This can be extremely useful in many situations but again, if you do not need interest-only, do not take it. It costs you money!
- Compulsory Life insurance, a common practice is for a bank to insist upon life insurance. Usually it is far less expensive to source your insurance independently. The worst practice we have seen involved the bank rolling up the entire costs of the insurance over a 35 year term and adding it to the client’s mortgage upfront. This meant the client paying interest on the total amount for 35 years – for no reason – a blatant rip-off!
- Changing the mortgage terms on the day of signing. We find this absolutely disgusting but it happens. Client arrives at the notary to purchase their new house and finds out the bank have increased the interest rate or reduced the term or added life insurance. The estate agent tells the clients they had better just accept it or risk losing their money.
In addition to purchase mortgages, there are now many banks who offer equity release mortgages, remortgages and Lifetime Loans in Tenerife and throughout the Canary Islands and Spain.
Remortgages in Spain were traditionally very costly but recent changes to legislation mean it is now possible to transfer (or subrogate) your mortgage to another lender offering better terms or simply to increase the length of your mortgage in order to lower the monthly payments.
Equity Release mortgages have grown in popularity as prices over the last 10 years have increased spectacularly. Many property owners have taken advantage of this and used the equity in their homes to buy further properties, make home improvements etc.
Lifetime mortgages or Lifetime Loans are relatively new here and offer those over the age of 60 to release equity in their properties without having to pay it back during their lifetime. So, no monthly repayments and a “no negative equity” guarantee. These products require qualified financial advice and again, we would recommend you use the experience and knowledge of a professional broker before committing to such a scheme to ensure it is the correct type of product for you.
Many thanks to Andy Ward of Tenerife Mortgage Broker for this sound advice on obtaining the best mortgage when buying property in Tenerife.