Whilst the attractions of owning a holiday home in Tenerife, Canary Islands, Spain are obvious with its year round sunshine, relatively short flights from northern Europe and low tax economy, the property (real estate) market has been at the best depressed in recent years. Tourists are still flocking to Tenerife in their millions so it is obvious this state of affairs will not last for ever and indeed there are a few signs of an up turn.
There are bargains a plenty to be found for the serious buyer, indeed I found a one bedroom apartment (condo) for sale in Costa del Silencio (a popular resort in the south of Tenerife) for just 55,000 euros (about £41,000 or 80,000$), this is less than half the price of a "park home" in the UK and I know what I would rather own! Plus of course there is always the option to rent it out while you are not using it.
In the ever popular tourist resort of Playa de las Americas, Tenerife one bedroom apartments complete with furniture and swimming pool, can be had for just 89,250 euros (about £66,000 or 130,000$). This is a resale property so it can be bought very quickly, which means in days you could be sitting in your very own holiday home and swimming in your very own pool!
If you want to get away from the tourist areas and go ten minutes inland, two bedroom, fully furnished apartments complete with garage can be bought for about 110,000 euros (about £81,000 or 160,000$) in residential areas such as Valle San Lorenzo, Tenerife. Buy a little run around to keep in the garage and you are set up for great vacations for years to come.
Of course the old maxim "you get what you pay" holds true, but if you want to spend just a little more, two bedroom, two bathroom fully furnished and refurbished properties close to the beach and all amenities can be found a plenty. If you want to sit on your balcony and see the ocean this commands a small premium, but they are available.
Obviously being a small island, the supply of land is not going to be never ending so developers concentrate on building small apartment blocks where permission allows and room sizes seem to get smaller by the year. Townhouses and villas can be purchased but prices are far higher. Townhouses are on offer from about 157,000 euros (about £116,000 or 228,000$) and villas from 241,000 euros (about £179,000 or 351,000$).
In which direction will the prices go is the big question everyone asks? Well consider that Tenerife is in a stable part of the world, there is guaranteed sunshine (probably the only European destination that this is so apart from the other Canary Islands), well served by the airline industry and a seemingly never ending supply of tourists and there can only be one answer.
Tenerife Property For Sale
In order to find the best property in Tenerife, first complete a thorough research to find the best value for your money.
Then find an agent who is familiar with the land and who knows where to find the best property spots. Find someone with verifiable credentials to answer your questions honestly and accurately. The bottom line is that property remains one of the most popular forms of investment and Tenerife has a lot to offer when it comes to investing in prominent property.
Tenerife has experienced a surge of property owners in the past few years, many with 100% mortgages. Because Tenerife is the most popular winter get-away spot for United Kingdom residents, investors in Tenerife have enjoyed a very profitable return. In fact, Tenerife attracts more investors than Barbados and Egypt. What makes Tenerife such a popular location to invest in property?
Holiday Packages Dwindling
Call it the end of an era as more and more people rent property in Tenerife through investors.
Investors are excited that people want to rent from them. Investors are able to offer holiday travellers more choices than many popular package deals when it comes to their stay in Tenerife. A package restricts you in a lot of ways, including how long you stay, what you get to tour, where you have to eat, and the like.
With the options provided by property investors, people are able to tailor their holiday more to what they want to do and see. In other words, renting from an investor allows you to create a custom holiday to your liking.
Investors acknowledge the Internet for their success, as the Internet is a viable way to cut down on marketing costs and still meet the needs of those who want to rent a holiday spot in Tenerife. The way of the package deal is seeing the end of the road.
Change in Habits is Good for Tenerife
Tenerife enjoys a new growth of investors who rent their properties to holiday travellers. As the demand for holiday rentals grows, so does supply and demand for the shops, tourist attractions, and dining establishments in Tenerife.
Investors claim their rental incomes as a major source of their overall income and renters are thrilled with their customized holiday plans. It is a win-win situation for Tenerife and holiday travelers alike.
Care in Choosing an Investment Property
As a potential investors be forewarned: not every property in Tenerife is a lucrative business.
Some investors fall under the assumption that because the market for investors is so high, every property is equally valuable. This is just not so. Consider what types of holiday travelers you expect to stay on your property and what attractive accommodations you have to offer to potential renters.
It is important to choose an agent who is knowledgeable and will assist you greatly when selecting your investment property. Choose the right agent and expect a lucrative and enjoyable investment for many years to come.
Both Gary Marshall & Ben Needles are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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