Buy to Let in Tenerife

31st of May, 2011 Bookmark and Share
The phrase “Location, Location, Location” is the most important thing that you must remember when purchasing a property, no matter in which country it is located. In the Canary Islands the climate is excellent year-round so this is an added benefit to owning a property from which you can achieve the maximum rental potential. Not everyone wants to be near the beach. Frontline property often means frontline noise. Accessibility to main attractions is, of course, important but most holidaymakers nowadays will hire a car – so as long as the property is within easy reach of motorways, and reliable public transport, you can be sure that it will appeal to a wide variety of people.
Buying for long term letting is a relatively new phenomenon in Spain, but times are changing, and in many cases it is foreigners that are leading the way. A combination of public sector incentives, tax breaks and grants are all adding up to make the country one of the most attractive in Europe for the buy to let investor.
As the Buy to Let markets become overcrowded in the UK and Ireland, It is reported that an increasing number of these investors are selling property in the UK, and buying in Tenerife.
The Spanish property market has spiraled in value for many years, putting prices beyond the reach of many younger people. Spain has more 22-30 year olds who still live with their parents than any other country in Europe. In order to reverse the trend, the government has introduced a raft of grants and incentives in order to encourage them to rent their own homes. From tax rebates to monthly subsidies of over 200 euros and a handout of 600 euros towards a deposit, the government has been pulling out the stops.
But it is not just young people that the government hopes to help with the rent. Recent changes in the law mean that all renters with annual incomes under 24,000 euros are now eligible for the same tax rebates as tax payers with mortgages.
As well as tempting renters onto the market, the government has also been doing the equivalent for property owners. Many owners have preferred to leave their second homes empty, and it is them who are being targeted by the incentives. Experienced Buy to Letters have been sitting up to take notice, because these are benefits that they can take advantage of as well. The government has set up a 'super-rental agency' called the Sociedad Publica de Alquiler, in order to promote properties. Renting through this agency guarantees your income "regardless of whether the tenant pays or not" and the condition of the property, removing the two largest doubts that potential landlords have. The agency will even assist with legal issues. For further information and advice about this Tenerife Property Investment will be happy to guide you through the various options available.

Tenerife Property Investment pride themselves on the matching clients with location and offering the best specialized advice on the best locations specifically suited for the buy-to-let market.
When purchasing buy-to-let property in the Canary Islands it is important to remember that although the climate is good year-round, that certain times of the year will appeal to different markets. Summer is excellent for families, whilst winter attracts golfers and an older age-group. It therefore follows that it is important to select a property which will appeal to as wide an audience as possible and, again, Tenerife Property Investment can offer advice in this connection.
Buying at the right price is crucial and achieving the best returns for capital investment means buying a property at a price which will generate the best returns. Buying into an exclusive area where there are many new developments often means paying over-inflated prices and it is vital to buy a property at a price which will generate returns quickly in the current and future market. Simple, you may think – but not always that easy and it is, without question, vital to source property of a type where there is not an abundance of similar property in one area.
Greatest growth is achievable from property which has been purchased at a sensible entry level price and where developers are offering incentive pre-construction, or pre-refurbishment prices, room for capital growth is therefore greater. Where a vendor is keen to sell to realize capital quickly i.e. a distressed sale, there is even more room for capital growth. Tenerife Property Investment specialize in sourcing properties which have been slashed in price in order to achieve a rapid sale. This is a highly specialized area and their many years of expertise have enabled them to find property which represents a sound investment for the buy-to-let market.
Having the right company to give you advice on who to use when renting out your property gives you peace of mind. Bear in mind that rental companies will charge a commission for this service but there are many cost-effective options to be considered. Networking with other like-minded owners will broaden your spectrum of possibilities and looking at multi-national, rather than just British renters will provide you with the opportunity to maximize the rentability of your ownership.
Tenerife Property Investment offers a service which will guide you through the many options available to you, thus ensuring that you are aware of the best possible ways in which to maximize your investment return. We will be happy to advise you on any aspect of Buy to Let property and to source the best possible options available to you, providing you with a hassle-free service which keeps you informed every step of the way.
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Edward Wilkinson
Eddy Wilkinson has more than 30 years of experience working within the property market, during which time he has studied property trends and investment in many countries throughout Europe and also in the USA. He has written many articles on this subject and specializes in the Spanish property market where he has given talks and advice to many people seeking to invest in the luxury second home sector.