July 4, 2008 at 6:56 am #54144
Dear forum people,
My husband and I are looking for opportunities to buy an apartment in Canary Islands, Tenerife.
The exact location that we are interested in is Las Americas or anywhere near to El Medano, as this is the best place for windsurfing in Tenerife.
I read that Las Americas is a very popular place for tourists, so I suppose it would be easy to keep our apartment occupied during the year there.
But what type of apartment is most popular for tourists, is it a studio, 1 bedroom or any other kind? ❓
Any considerations or suggestions would be greatly appreciated!
Thanks in advance! 😉
July 4, 2008 at 7:35 am #85027
my advice, don’t even think about buying , as property prices are coming down. Your apartment will lose money from day 1 even if you have 100% tenancy. Any property you are thinking about buying will be cheaper when the property collapse has completed its cycle.
Buy now ….and you will be stuck with a property that will lose several tens of thousands of euro’s in the next few years in it’s vaue. Your money, your choice
July 4, 2008 at 8:23 am #85028
Thanx for replying so fast Kindy!
Well, we are not going to buy it now, probably in 2-3 years, we just decided to start searching now and also, we are trying to figure out the approximate cost of an appartment.
We want to use this time to find as much information as possible and to learn Spanish 😉 .
July 4, 2008 at 8:42 am #85029
Whilst it good to start your research as soon as possible as some one said its “never enough research”.
One thing you have to be careful that if you plan to buy in three years time than a large % of research will be out of date, in two to three years time.
Taking decisions on the results of a three old research is as good at times as not doing any research or partial research.
July 4, 2008 at 8:59 am #85030
I do agree with you.
But at the moment we do not know much about property in Spain anyway, so we decided to do the research bit by bit until the good moment to buy.
Probably next year we will be able to search for information in Spanish, which would probably give us a bigger picture. We would also probably visit Tenerife next year and start a ‘field research’ 😛 .
Therefore, at the moment we wanted to have a rough figure of how much money we need to have to be able buy ‘the right’ property in Tenerife.
By ‘the right’ property I mean, the one which would suit our requirements and which we would be able to give for rent. Of course this figure would change within 2-3 year time, but anyway we need to get an idea.
July 4, 2008 at 10:46 am #85031
The best advice I can offer is to vist some rental agencies next time you are out there and ask pleantly of questions:-
– Short-term v’s long term lets?
– Average expected occupancy?
– who does the less damage etc?
– expected rental rates per unit so that you can work out rent yields etc
Also you will also be able to find out what’s available in terms of management etc and what it might cost.
But be cautious if they then start to sell such recommended properties to you!
July 4, 2008 at 11:34 am #85032
JJB-Mias, thanks for advice,
I have read that with some agencies (actually real estate agencies in any country) you may enter into a contract which gives you a guarantee that your appartment will be rented out for a maximum of 2 years for a specified amount of money (previously agreed upon).
What do you think about this?
July 5, 2008 at 8:28 am #85043
On some developments on the Costa del Sol the developers were giving the option of a two year rental agreement, or a discounted mortgage. However, this is usually included in the price of the flat in the first instance, so you are paying it yourself anyway.
With the rental agreement, it means that you have to furnish the flat, usually taking the package again provided by the developer, and you can’t use it yourself even if the flat is not actually being rented out. If it is being rented out you also get wear and tear on the furniture. IVA also comes into play between yourself and the developer.
Around here on the coast at the present time I have seen buy two flats for the price of one!
July 10, 2008 at 2:41 pm #85152
When you do decide to buy, purchasing in a busy tourist area would make the most sense. Then you’ve got the option of holiday lets (more work, advertising and cleaning costs) or long lets to people who work in the bars, clubs etc. (you can’t get in yourself, but you’ve only got to find one or two tenants for a year, as against 20 for holiday rentals)
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