May 2011 Tenerife Property Magazine
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Property Magazine May 2011| Sunway Tenerife The Estate Agents
Welcome to the May edition of our Property Magazine Welcome to the second Newsletter! This month we will be continuing to bring you some of the best buys in Tenerife as well as information about Tenerife.
The picture on the first page is of Los Cristianos Harbor. So this month we will be focusing specifically on some properties for sale in Los Cristianos, which is a very popular location for not only relocating to but also has great potential for the rental market. Have the best of both worlds, a holiday home for yourself which earns you money while you´re not using it.
Among many other things, you will also find part two of our relocation guide further on in the magazine as well as a guide for buying property as a rental investment.
If you have any questions about any of the properties in the magazine, or any general queries regarding Tenerife, contact us and we will be happy to help. You can also keep up to date with the property market in Tenerife by joining us on Facebook, Twitter and YouTube where we have just over 100 video virtual tours of properties currently for sale in Tenerife.
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Property Magazine May 2011| Sunway Tenerife The Estate Agents
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Property Magazine May 2011| Sunway Tenerife The Estate Agents
About Los Cristianos Los Cristianos still retains a hint of the original fishing village it used to be with its fresh fish dispensers on the port and is the second largest holiday resort in the south of Tenerife, the largest being its next door neighbour Playa de Las Americas. The centre is completely pedestrian friendly, which is good news for tourists and a welcome change from the steady flow of traffic typical in areas such as Las Americas. The older area of town is made up of houses in which most of the town's local Canarian population still live. Los Cristianos merges into Playa de Las Americas further down the Coastline and can be reached by bus or on foot. Los Cristianos has two main beaches both of which are suitable for soaking up the sun and swimming lazily. It also has numerous restaurants, and bars including one or two clubs. Travelling time from the Airport is about 15 minutes.
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Property Magazine May 2011| Sunway Tenerife The Estate Agents
About Los Cristianos Let us not forget the leisure port from where the ferry leaves for the surrounding Islands. Boat trips to see the Whales and Dolphins are another option the port has to offer. The nearby centre hosts a good selection of shops. It is difficult to determine where Los Cristianos ends and Las Americas begins, especially if we take into account the seafront area known as San Telmo. This is because Las Americas kept expanding eastwards until it reached the Los Cristianos borderline. Los Cristianos is famed for its beaches scattered along the seafront. The most popular one, Playa de las Vistas, was completed in 1997 with the aid of sand taken from the sea-bed itself. Next to the port, amid the hustle and bustle of the town centre, we find another popular stretch of beach surrounded by bars, restaurants and shops. These two areas are excellent for rental investments having all the ingredients a holidaymaker would choose. Then again, they are also suitable for those who like town life near the sea.
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Property Magazine May 2011| Sunway Tenerife The Estate Agents
Tenerife Relocation Guide Part Two Dentists in Tenerife: Dentists are many peoples nightmare! Unfortunately, we will at some point be in need of one...don’t leave it until it’s too late. It’s very easy to obtain a Dentist here in Tenerife. If you have Health cover in the UK or Private Health here you can register with a local Dentist of your choosing. (Quite a number of Dentists speak English too!)
If you don’t have any cover and require urgent treatment, it could be costly as you will be charged at full rates. Private Dental Insurance can be as little as €80 per year, ask around to get the best quotes and cover. Sunway Tenerife has a free after sales service and are Agents for ‘Adeslas Health and Dental’ so contact us if you have any queries.
Pets, Passports & Vets: No-one wants to leave their beloved pet behind when they move abroad. Speak to your local Veterinary Clinic in the UK to organise an EU Pet Passport. Your pet must be accompanied by the bi-lingual certificate for Spain as prescribed by rule EU 998. This passport must show that the pet has been vaccinated against rabies by a licensed veterinarian at least 30
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Property Magazine May 2011| Sunway Tenerife The Estate Agents
days prior to travel and, it has been given any other vaccinations or treatments that each individual country may require. Unvaccinated pets (dogs and cats only) under 3 months old may enter the Canary Islands, but there are additional regulations that must be met. Certain aggressive breeds of dogs are prohibited from entry.
When you arrive in Tenerife, drop by a local Veterinary Clinic, register your dog and of course the micro-chip number just in case your pet is lost or stolen. You will need to take your Pet Passport with you each time you visit.
Working: Everyone has a right to work in Tenerife. You should be a resident of Spain and be in possession of an NIE number. This allows the Employer to offer a contract of Employment, register you with the Tax Office ‘La Hacienda’ and to pay your Social Security contributions. It is illegal to work for a Company in Tenerife without a working contract (albeit that this still exists)
Each year, you are required to make a ‘Declaration de la Renta’ by submitting all your salary slips ‘nominas’ to the tax office to ensure you have paid the correct amount of tax. Your Company should be able to help you with obtaining the correct forms. 7
Property Magazine May 2011| Sunway Tenerife The Estate Agents
Many people opt to employ a Consultant ‘Gestor’ who will complete the forms and submit these to the Hacienda on your behalf. Costs vary, so ensure you ask beforehand what the total fees will be.
Pensions Abroad UK State Pensions, your British pension, as well as some other benefits are payable in Spain. For some benefits, you will have to have been in receipt of them before you left the UK for Spain.
If you are already receiving a Pension in the UK and have decided to move abroad permanently, you have the right to transfer your Pension payments to any overseas bank. You will need to open an overseas Bank Account local to you and inform the UK Tax Office. Remember, your pension payments could fluctuate as each time your pension is transferred; it will be paid in Euros at the exchange rate according to that day. The rule of thumb is, you should normally apply to the Institute Nacional de la Seguridad Social (INSS), but only if you have worked in Spain at some point. The INSS will then inform the UK that you have claimed and you will not have to make a second application to the UK.
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Property Magazine May 2011| Sunway Tenerife The Estate Agents
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Property Magazine May 2011| Sunway Tenerife The Estate Agents
Buying Tenerife Property as a Rental Investment Compare property prices in Tenerife to Mainland Spain or any other European country and you will find Tenerife prices still sit slightly below the average…Although the property prices in Tenerife have not dropped significantly, offers are being accepted by those needing to sell, so there are plenty of bargains on the market right now. Interest Rates are good and another huge advantage is that Tenerife with its wonderful all year round climate is the perfect place to buy property and if you are looking for an investment with a guaranteed rental income, now is a good time.
Your budget will determine the area you can buy in and the property price is usually determined by what the complex has to offer: If you haven’t already, make yourself familiar with a few areas.
Not every property is suitable for rental investment. Tenerife investors need to take care in selecting the right property for the best returns. The apartment you decide to buy may already have a rental contract in place (guaranteed income). Ask to see the annual returns on the property to ensure this is a sound investment. People renting expect to pay less for long term rentals than they do for short term…you (The new owner) still have to cover all costs incurred. Calculate your return by ensuring it covers all fees. Mortgage, Community, Gas, Water, Electric, Rubbish collection, Taxes etc all have to be paid before you make any amount profit on the property. If there is no rental contract already in place, you can get advice from your Estate Agent. They will help you list outgoings to calculate what rent you are best to charge…they should also be aware what others on the same complex are charging.
Having purchased property here in Tenerife you may continue to live in the UK. Will you manage the property or will you decide to opt for help? Many Estate Agents have Management Services: They will collect rent, organise any maintenance required and check the property is safe and secure. To give you an idea of what you can expect to pay and re-coup, here is an example of a 1 bedroom apartment in 3 different locations in the South of Tenerife: Las Americas: Nicely located with all amenities nearby. Here you can expect to pay approximately €90,000 plus for a 1 Bedroom apartment, 1 bathroom with fitted kitchen, lounge/dining room and a terrace etc. There is usually a swimming pool on most complexes. Rental return on a property like this one can be: €550 + a month for a long term contract. (€6,600) per annum. Short term rentals will usually be in excess of €150 per week.
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Property Magazine May 2011| Sunway Tenerife The Estate Agents
Los Cristianos: For the same type of apartment above, you can expect to pay less here than you would in Las Americas. 1 bedroom apartments can start as little as €80,000. Again all within easy walking distance to bars, shops and local amenities. Rental return on a property like this one can be: €450 + a month for a long term contract. (€5,400) per annum. For short term holiday letting you can expect in excess of €120 per week.
Fañabe: A more upper class area than both Los Cristianos and Las Americas. The area is much quieter; it is away from the hustle and bustle of too many shops and bars. Prices are higher and a 1 bedroom apartment here, may set you back as much as €150,000. Rental return on a property like this one can be: €1,000 + a month for a long term contract. (€12,000) per annum. Short term rentals can easily fetch in excess of €350 per week. Remember to check what the community fees will be as they can start as little as 80 Euros / month but do increase significantly depending on the complex facilities and location.
The best rental incomes are in the popular tourist areas of the south, such as Las Americas and Los Cristianos… there is also a huge need for rental property here due to the number of residents wanting to live and work in the same area. Your property could be rented out all year round if you buy in the right area and rent out at the right price.
Before you buy, ensure you have the right to rent out your property short or long term: Recently tourist accommodation inspectors have been appointed across the Canary Islands, it is their task to clamp down on the apparent illegal renting of self-catering accommodation to tourists. Many property owners are however, unsure about the law governing renting to tourists and the implications for their own properties. Ask your Estate Agent for more details.
The law as it stands now is: Ley 7/1995 (as amended by Ley 5/1999 was introduced throughout the Canary Islands in an apparent attempt to harmonise the regulation and administration of short term rentals to tourist. This law states that on a community or complex which is legally designated as “touristic” (as apposed to merely “residential”) owners may commercially rent their properties to tourists provided that they do so through a single agent or administrative entity, which has obtained the exclusive license to “exploit” on that complex. On residential complexes, rentals are only allowed if there are for duration of longer than 3 months and there is a rental contract in place.
As an example: Many owners of apartments in complexes such as Terrazas del Duque, Balcon de Andalucia in Torviscas, Port Royale in Los Cristianos….etc, do not realize that these complexes are in fact Residential and as such it is prohibited to rent short term. However, there are many residential complexes (like the ones above) that WILL rent extremely well for up to 6 months in the winter months, leaving time in the summer for you to enjoy your investment.
Sunway Tenerife have over 26 years experience, please call for more information about buying Tenerife Property as a Rental Investment. The Sunway staff team are able to offer you a wide and varied selection of property across the south of Tenerife as well as one of the most professional services on the island! 11
Property Magazine May 2011| Sunway Tenerife The Estate Agents
Short Term Rental Options
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Property Magazine May 2011| Sunway Tenerife The Estate Agents
Long Term Rental Option
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Property Magazine May 2011| Sunway Tenerife The Estate Agents
In the next issue: More top properties for sale, with a focus on the west coast (Playa Paraiso, Callao Salvaje, Tijoco‌..) Part three of our relocation guide Client testimonial Some local Tenerife information & events in the summer
Visit our website by scanning the Tag above with your mobile phone Sunway Tenerife Ltd 2 Parque Cattleya, Avenida Santiago Puig Playa de Las Americas 38660 www.sunway-tenerife.com (0034) 922 790021 14
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Property Magazine May 2011| Sunway Tenerife The Estate Agents