Buy property in Tenerife with very important tips to be on the safe side.

Buy property in Tenerife with many investigator insider tips to avoid bad decisions, tears, sleepless nights and financial loss.

The investigator is not an estate agent.

Her knowledge is based on 10 years of experience in Tenerife and in other countries of the world.

Lets assume we want to buy a holiday home which will make cheap holidays to Tenerife possible for a start.

We know we can chose the easy way and employ a real estate agent while trusting him with the way he handles our purchase.

The problem with this is that agents are terribly busy. There is always the next appointment on the agenda.

We don't know all the questions we should ask them.

Be assured that they will not give you a list on all important points involved when you want to buy property in Tenerife.

They will point out the nearby beach, shopping mall, golf course, airport, infrastructure, buses, schools, medical centers, oh yes.

Some clever people insist on getting to know neighbors first when they want to buy property in Tenerife.

Buying Tenerife property with pets:

Think twice before you buy an apartment with cats and dogs in the neigbourhood...

Our much loved president Christina Rodriguez in my house Edificio Kristal Los Realejos has a cat which sleeps in her indoor patio for not getting on with her daughter's dog. The Finnish people living in the apartment above are not happy with this. The cat doesn't disturb me in my little atico penthouse above.

I was chatting up a German couple who wanted to buy other Tenerife property. The people unknown to me were studying real estate display at the window of agency Atlantico Los Realejos La Longuera end of May 2008.

They told me they had decided to buy a house, now, because, since having 2 cats owning an apartment wasn't good enough any more.

Both cases show clearly that pets must be minded when buying property in Tenerife.

The possibility to end up with Tenerife property ownership with pets is given as such lovely cats and dogs are offered for free in cat and dog sanctuaries in Tenerife North. For more information phone Lee Wilson of APAT at tel: + 34 922 37 40 24...

Some of the secrets revealing property neighborhood qualities will only come to light when you engage an investigator or start snooping around a bit in a specific area.

More insider tips for whoever wants to buy property in Tenerife:

Somebody suggested to buy property in Tenerife at an intrinsic value of 70 % of the asked price. This business attitude borders on 'Highway robbery' in relation to real estate in my mind. Besides, remember:'What comes around goes around'...

The vendor might have bought at a highly inflated price and his money lenders might not have noticed.

Therefore, consider carefully before getting villas or apartments which have been on foreclosure.

However, taking over the buyer's mortgage could be an advantage.

Not every object will make a lucrative business for house flipping which means buy, fix up and sell quickly to make a profit. This by the way, is not a good idea if you want to sell earlier than 3 years later on Tenerife and Canary Islands or Spain.

Tenerife renovating can be great fun, though.

Possibilities that seldom come to mind when one wants to buy property in Tenerife:

Conditions attached to a property sale be better avoided.

Stay clear of property fraud...

Avoid problems that were hidden such as by wall to wall carpets.

Payments could be charged to you for the vendors debts.

You might have to suffer for negligence of maintenance by previous owners when a roof starts suddenly leaking, for example.

Learn to look out for structural cracks and don't worry about hair cracks.

A main road could suddenly be built in your neighborhood.

Official letters might arrive that tell you that your home was built or altered without permissions before you bought. It could be pulled down or you might be asked to change unlawful alterations.

Before thinking to buy property in Tenerife also read up on more news from March 2008 on illegal building in rustic Tenerife zones...

About 800 houses near Tenerife beaches were issued with take down orders by year 2008.

No real estate agent really knows if the safe distance is anything beyond 70 feet (about 20 meters) from shore where one can buy land by the sea for building)

Land might have been declared nature reserve or national heritage. Buyers had been informed recently that some land south of the Guillmar Pyramids was classified like that. They seem to be lucky that their half finished building is being turned into an educational center for its environment.

People often forget that alterations and renovations will cost more than they can afford before they buy property in Tenerife.
Written quotes which include finishing time are very important, beforehand.

Engage a surveyor to check out land suitability and faults before you buy land.

You should engage a project manager that is responsible for works on your home which we should have done with a potato finca a potato farm because you can't keep an eye on everything yourself.

Find out if a tramway or road is planned where you want to buy property in Tenerife to avoid confiscation of your holiday haven.

Beware rural properties or country estates. They sometimes come without existing title deeds.

Expenses will be partly payable by you for property in a hotel where fire safety precautions are suddenly required by law,

Avoid a house flip or renovator's dream being passed as a sound property by a building society which is biased.
Therefore, it's better to engage your own building or ground inspector for an impartial opinion.

Have a rentability check done by a good accountant before you buy property in Tenerife.

Go for a location which is also lucrative for renting out, just in case.

Rather invest a little more and buy into a prime neighborhood which has all the signs to stay that way.
Going for an upcoming location like a soon to be opened attraction is promising higher property value nearby because,workers will like to live near work. This will push up rent and property prices accordingly.

Before you buy property in Tenerife consider a mortgage in Spain or in your home country without taking unnecessary risks to avoid foreclosure.

You could also look around for a part time job in Tenerife to get you over the hump of initial one time expenses of property purchasing in Tenerife. You could even borrow money from relatives rather than from friends.

How and where buy property in Tenerife best after 2007:

Find out what are best apartments Tenerife north and what people to buy from best which needn't just be sellers with mortgage problems.

What documents are important when you want to buy property in Tenerife?

1. Copia Simple or certified Copia Simple (cost about EU 35)must be in the name/ names of the vendor/vendors which will also show any debts or mortgages bound to the sale's object. Street names must be stated or, an acceptable graphic of property location when in a hotel which is all obtainable at the local town hall.
   An apartment bought may not have a floor number registered. Even, when misunderstandings can't be because, no other unsold apartments are around there must be a number. This may take time to get entered into the computer data of the property which is needed both at municipal level as well as at the property registry office. Small hassles, but annoying nevertheless...

Not to be forgotten are little details when you want to buy property in Tenerife such as:

1. Address of what you want to buy must be correctly stated in Copia Simple.
2. Apply for Nota Simple (proof of registration of vendor's deed) atOficina de Registro ( registry for ownership of property).This is usually not at the mayor's office or town hall. In case that you also want to get a bond this may be cleared by your bank or similar financial institution where you apply for your mortgage.

   You can have this agreement prepared.

   Have included in the Promesa de Compra-Venta that below mentioned conditions must be fulfilled before the signing of the deed of sale. This also must include the grant of your mortgage.

2nd important document when you intend to buy property in Tenerife:

1. Promise to buy/sell (promesa de compraventa) which must be signed by all parties
   with all important data including all names of buyers and vendors, price, and when to be bought.
2. You will need a valid passport to apply for the NIE number without which no home ownership in Spain is possible.

Don't let yourself be tricked or rushed into signing this first document.
3. When changing your mind of buying you will lose your deposit (down payment) which is normally 10% of sale's price or 20% when buying off plan)
4. Make sure that there is a similar clause which will cover you in case the vendor doesn't want to sell any more.
5. Constructor's insurance for newly built homes; cracks and faults that may only appear much later.
   A penthouse with a very large tiled balcony has a tiled and cracked floor. The faults were only showing 3 years later after the owner moved in. There was no builder's insurance. Taking the builder to court for it might not be worth effort and, expenses. Such an insurance must exist, also, when you want to buy off plan before a building has been started.
6. Apply for your mortgage in Spain or in your home country (flexible or fixed as soon as possible)
7. Open bank account as soon as you have your NIE number and find out from your overseas bank how and how fast they can transfer money for you. There is the possibility to use escrow services which I would discuss with an expert.

Main document when you buy property in Tenerife:

Deed of Sales (Compra-Venta de escritura)

1. Deed of sale must include all important data such as names, address, price, eventual 'uso fructo' (when the property is bought in names of children for example which allows a 3rd party to live in it and eventually more). It should also give the square meters of the property and/or age of property. It should also state that all outstanding debts as well as municipal tax has been paid up.
2. A mortgage of the vendor will be taken off on day of deed signing at the notary. The seller never sees this money.
3. Bring your passport and NIE certificate with you on deed signing day.
4. Get a bank certified check that will be handed over when signing the deed of sale. Please bear in mind that 5% of the price you pay will automatically be held back by the bank to send to the receiver of revenue if the seller is not a Spanish resident.
5. You may ask the notary for a 'borado' of the deed of sale( a 'borado' is not the final version) prior to exchange of signatures by yourself and the vendor. You may take it to an authorized translator. This will help you to best understand the total content of the deed. The translation might cost you between EU 35 and EU 50.

What will be your total cost you will have to add on to the purchase price when you buy property in Tenerife?

Expect about 11% of the sale's price for everything except charges by a lawyer, translators, tax consultants or gestorias(agents who handle all sorts of documentation).

Final costs to buy property in Tenerife to be expected are:

1. 6.5% I.T.P (transfer cost) for resale property (not newly built or off plan) which is to be paid within 2 weeks at the Oficina del Registro (land registry)where you also apply for your Nota Simple (which proves that your property has been duly registered in a buyer's name.
2. Note please that Pro or Plus Valia Tax is now always to be paid by vendor. This was not the case before. This tax varies from town to town or, from district to district.
3. 5% IGIC ( kind of a value added tax) for new properties and land.
4. documentation tax 0,75%
5. stamp duty

6. notary fee for setting up deed of sale document.

Please, note that all documents may be handled and signed for and on your or seller's behalf by an estate agent, lawyer or, financial adviser by power of attorney( authority given by the buyer or seller to do so).

It is officially illegal to under-declare a sale's price of a property. Nevertheless, it is still very much practiced in the Canary Islands. But, bear in mind, that under- declaring a sale's price in the deed of sale (escritura) might cause problems for you.

You may also appoint a lawyer who will charge you for total handling 1 - 1,5%. A recommended tax consultant is another option.

They could arrange water, electricity and perhaps even telephone connection for you.

Such services are offered by Tenerife property management companies, as well..

When you want to buy Tenerife property please, mind Tenerife advantages to save money on living costs and many others. VAT called I.G.I.C. in Tenerife only being 5% is just one of them.

Buy directly from owner...

Much money may be saved, when you buy Tenerife properties direct from owner, such as with this Tenerife resale property los Gigantes or with this Tenerife apartment by Puerto de la Cruz, both of which have flair and stunning views.

Tenerife property jargons with photos of real estate as examples and much more.




In any case, we need to know the ropes for buying Tenerife property, exactly.

We cannot trust others fully ever because, we are all humans. We all make mistakes.

Please, mind that there is no guaranty that what you find in the Internet is totally correct.

Spain Tenerife autonomous has its own laws like the new property law advantage of 2008 which is still slightly disputed, by the way.

Employing a lawyer or a good tax consultant who knows real estate laws is highly recommended in most cases.

Many of us slaved for a first or 2nd home ownership for our retirement days. A better life style is at stake by mistakes easily made.

Even the purchase of the smallest home should work out to be a good investment.

Does getting an overseas home or buying a holiday home in Tenerife sound scary?

It's not dangerous as long as we don't rush into anything, as long as we open our eyes, follow our instincts and listen to good advice.

About selling

Reverse mortgages

Mortgages in Spain might get government support.

Disclaimer:
Property laws and circumstances in Tenerife are changing and it's impossible to always know it all. Therefor, nor the author of this article nor what is expressed in links can be taken for 100 % reality as everything on the island is subject to change.


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