What makes Tenerife property such a good investment?
These days more and more people in Western Europe, particularly in Britain, are looking to invest in overseas property. On first glance it would seem that the number of potential locations in which to find the ideal holiday home or apartment in which to retire in the sun are endless. The exotic Caribbean Islands are tempting of course, as is the U.S. sunshine state of Florida. Central Europe (including France and mainland Spain) have strong communities of UK expatriates and Eastern Europe with its new-found republics popping up everywhere is an interesting possibility.
So why, with all these wonderful choices do we still consider Tenerife to be the best option for those seeking to invest in property abroad?
1) Weather - Ask 10 UK expatriates
why they chose to live abroad and 9 of them will tell
you that they wanted to escape the cold British winter
and generally wet and disappointing British summer
too. All the more reason then to decide on your new
location after comparing the year round climate of
each potential area. Extremes of temperature
afflict many of the countries listed above - uncomfortable
levels of humidity, tropical storms and endless dull
and dreary days while you wait to be blessed with
a fabulous few months of summer sun.
By contrast, the weather in Tenerife is just about the best in the world. Warm summer days, with average daytime temperatures around 28ºC (82ºF) and gentle short winters, lasting only 3 or 4 months, where daytime temperatures rarely fall below 23ºC (73ºF). No hurricanes, no earthquakes, no unbearably high summer temperatures and no high humidity!
2) Investment
value - The UK experiences cycles of fluctuating
property prices which could mean that you might buy
a property now, and find it is worth less in one year's
time! Tenerife on the other hand, has no wild increases
in property price, but moves forward at an average
rate of around 10% growth year on year.
As Spain is in the EC, the currency in Tenerife is
the Euro, one of the world's most stable currencies.
3) Traveling
time - another area of concern to most people wanting
to live 'in the Sun'. Clearly buying property in the US
or the Caribbean entails long flights, often with stopovers,
then you have to get from the airport to your property.
But even the apparently gentle 2 or 3 hour flight to Spain
can soon become double or triple that with traveling time
to and from airports. And no one needs reminding about the
traffic in the UK where a Friday night jaunt from the Midlands
to the South coast can easily take 5 or 6 hours!
In comparison, you can fly from virtually any airport in
the UK to Tenerife's modern International airport in 4 hours,
where the main areas of the south are a mere 10 or 15
minutes' drive along a modern motorway.
4) In the past, Language has been a barrier to people wishing to improve their lives. Living in a gentler, warmer environment, and even in France and many parts of Central Europe, a significant knowledge of the local tongue is essential.
Here in Tenerife, although Spanish is of course the official language, English is spoken extensively, and in the South is at least as prevalent as Spanish.
5) Security is an issue that is often raised by people thinking of buying property and should be considered very carefully. In those Eastern republics, the mystical charm can soon evaporate when one realizes that the rule of law is observed in an altogether different way from in the UK. Even in the southern states of America, near to Miami, where some people have chosen to live or invest, there are many no-go areas.
Compare this to Tenerife, where the law is observed in a modern, civilized manner. Of course nobody would suggest that Tenerife is crime free, but it is deterred by an aggressive Guardia Civil and Policia Locale, and car crime, house thefts and common street crime are significantly below the levels of most British towns.
All in all, Tenerife stands head and shoulders above all other options for purchasing second homes - great weather, sound investment, easy to get to, and a secure environment for families. Not to mention beautiful beaches, fabulous mountain ranges, and cosmopolitan cities. The island has numerous micro-climates and travelling from place to place one can see such diversity, the green lush North, through pine forests to Mount Teide (over 12,000ft and snow-covered in winter), to the sun drenched south. Six championship golf courses with more planned, superb sea diving opportunities, windsurfing, yachting and so on. Living costs are low, fuel is less than 50% of UK prices, cigarettes 25%, eating out is about half the price and council rates a fraction of what you would expect in the UK. Easy links to the other Canary Islands by fast modern ferry can mean you could leave Los Cristianos in the South and be walking on the magnificent island of La Gomera 35 minutes later.
Tenerife's 217 miles of coastline encompass, arguably, the
most beautiful, unspoilt island in the world. Many thousands
of British people have moved to this paradise, and each
year the number is growing, so if you're thinking of buying…then
look no further than Tenerife!
Off-plan
investment in Tenerife
Many people looking for a property in Tenerife find
buying off-plan a great investment. Buying off-plan
means investing in a property on a new development
before that property is built and often before any
construction work has started. In certain cases, a
property can be sold even before the developer has
been granted a Licencia de obra (licence
to build).
Buying a property in Tenerife during the pre-construction period ensures a fantastic return for your money. Properties are priced very competitively at this time because the developer is eager to minimise his risk factor and to negotiate decreased interest rates from investors by selling as many units as possible.
Potential investors are being asked to buy an architect's
drawing and an empty plot of land, so it's not surprising
to find that the earlier you make your purchase, the
less expensive it will be.
Usually, investors are asked to pay approximately 30 per cent of the total purchase price as a deposit. The remaining 70 per cent is paid after completion and can be financed by a mortgage.
Once construction begins and the new development starts
to take shape, it's much easier to get an idea of what the
property will look like once it's finished, which is why
the purchase price increases at this stage. Once the development
is completed, buyers are willing to pay even more for the
final product. Many people invest in off-plan properties
in Tenerife only to resell them for a hefty profit once
they're finished. As a bonus, the seller is not required
to pay Capital Gains Tax if the property is sold before
the owner takes possession of the escritura (title
deeds).
