Tenerife property: Buying a second home

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Tenerife property: Buying a second home

Second time buyers

We are talking about one of the eight Canary Islands, located in the Atlantic Ocean. One of the favorite destinations of both Europeans and the entire world which is why more than five million tourists choose it for their vacations every year. And some of them fall in love so much of the place that end up investing in a Tenerife property. In this Island, 28.91% of the properties that have been sold in 2019 first trimester were bought by foreigners (according to the Registrars of Spain data). Among Baleares, it usually represents the Achilles heel of people from the UK, Germany and France. But given the island great diversity, it is also common for locals to buy a second residence near the sea.   If you already own a home and are thinking about buying a second residence in Tenerife, whether foreign or local, here you will find some tips.

1.- Tenerife property: Consider your goals

Living in a dream place could be very tempting. But before making such an important decision, you should ask yourself about the functionality or purpose of this investment, in order to make the right decision. Maybe you want it to visit on weekends, holidays or in the summer. Or you’d like to have it as a place for your retirement or pass it on to your children. Even you may want to buy a place to move in near the beach, and rent or sell your old home.

Vacations

Fall in love with the property, because it is the place where you will experience happy, quiet moments of relaxation and fun. It has to inspire you and make you dream with your eyes open. If you are thinking of buying a second residence for your vacation or to move, the best would be renting a home nearby for a short time before making the investment, so you can know the area perfectly.

Investments

If you want this Tenerife property as an investment opportunity that could produce income, then you have to forget about emotions and just run the numbers. Run a comparison of the mortgage (if there is one), upkeep and other costs. Subtract it from the amount you expect to receive each month for its rent. Use updated data of the area guiding you through properties close or similar to yours. This is not a small decision, ask for some help! Consult an expert to decide if you can effectively face this investment. Not only for what it initially costs, but for all the taxes that may be derived from it, your retirement plan, and other important things in case you want to keep both properties.

2.- Tenerife property: Find a good realtor

An experienced local agent would give you valuable insights about the area. He will tell you if the property meets your needs, or if in the long-term will have a good resale value. He could talk to you about price histories for comparable houses, current market status, nearby amenities…   And not every realtor could really help you, so you better choose a good one. Here you have our article about how to easily identify good practices of realtors.

House types

As said before, a second home could have many purposes, but once you have made your mind about that in particular, it would be easier to decide which kind of property would meet your needs. In RE/MAX Golden Mile we have several options that you would love. Take a look at our properties page. Whether you want a new villa near the sea, luxurious properties in Tenerife, independent house, or apartments full of charm in touristic areas, we have all kinds of answers to your requirements! Contact us now.