Top Tips For Purchasing Property In Tenerife

Tenerife property

It can be a very exciting time when purchasing a home in Tenerife.  However, it can also be an expensive and worrying process.  
The following are some useful tips to help you get through the entire process and safeguard you from potential pitfalls.

Do your research 

Before you even start to search for a property to buy in Tenerife, it's a good idea to first visit your lawyer.
There are numerous preliminary issues that you should discuss during the relatively calm time before finding your dream home. They include property ownership, mortgage financing and structuring your purchase to minimise costs and taxes.    

Select a reputable estate agent 

Estate agents in Tenerife are not really regulated unlike in the UK where they must hold a license and be professionally qualified in order to practice. Check to make sure the estate agent is fully registered, well established, and has a sound track record for quite some time. 
That will help to ensure that you are covered and protected from any potential issues. If the agent offers any further assurances then even better but there are several well-established estate agents in Tenerife through whom you are guaranteed professionalism and safety.

Surveying the property.

Just like you would do when you are in the UK or any other northern European country, be sure to obtain a survey or get the property inspected before entering into a purchase agreement. Also be sure to thoroughly research the requirements for mortgages and the options that are available to you. Weigh all of the pros and cons of getting a mortgage from a UK lender or similar versus getting one from a local lender or bank close to the property that you are buying.

Buying with non-Euro currency

When you purchase a property in Tenerife inevitably you'll have to transfer a sum of money in Sterling (if buying in pounds or any non-euro currency) into euros in order to purchase your property. When it comes to exchange rates, they are constantly changing and fluctuations of more than 10% can happen, even within a short period of time. That means that there can be significant changes in costs, especially when it takes some time for the purchase to complete, like when purchasing a property.
A currency dealer specialist will usually offer a better exchange rate than a high street bank will. They can also provide a range of services which can help to protect you against adverse currency movements.   

Be aware of bank charges

if you request your bank to transfer money for you then you should expect to be charged for them doing it for you. A local bank also might have substantial charges for receiving your money. However, a reputable currency trader or services such as Transferwise might be able to reduce or eliminate those charges altogether.

Fixing exchange rates 

You can make an agreement to purchase your foreign exchange for currency to be delivered within a period of time of up to two years and then fix your exchange rate at your agreement time. That is referred to as 'forward buying' and helps you with securing an exchange rate at a really advantageous level and remove the risk that comes with adverse currency movements that may result in non-euro currency values increasing on your Spanish property between the time that you sign your contact and your actual payment.

Mortgage repayments

If you have to make overseas payments on a regular basis like mortgage repayments, then you need to arrange a currency dealer to help get a payment plan set up for you. This will eliminate the worry that exchange rate fluctuations can cause when currency payments are made and the transfer fee will just be a fraction of what a bank would charge you. 

Is Tenerife property a good investment?

Due to being a year-round destination, investing in property as a part-time home or generating holiday rental income is an excellent bonus.
Most of the popular resorts are becoming more and more popular and with them, the property rentals are busier than ever with most of the year fully booked in advance.

Final thoughts

Make sure you never sign anything unless you're absolutely certain that you have everything in place and you're happy with the decision.
If you're ever in any doubt, there is no obligation and you can walk away if you're not happy.
Tenerife estate agents can do much of the heavy lifting for you and will keep you informed of the progress. Once you find the right agent, it makes it so much easier to process and think more clearly.

The island makes a great home and if done right, you too can have a slice of paradise. 

Similar Articles

luxury home

Portland, often called the "City of Roses," is where natural beauty meets a commitment to sustainability. This vibrant city in the Pacific Northwest has gained a reputation for its green lifestyle and eco-conscious culture

Metal Storage Building Kits

Metal storage building kits have become increasingly popular among property owners looking to maximize their storage space and add value to their properties. These kits offer an affordable and versatile solution for creating additional storage space without needing professional construction services. 

Power of specialised legal searches

Discover the efficiency of specialised legal searches. Uncover key information and navigate legal complexities with the power of specialised legal searches.

Where to Get Moving Boxes For Free in Massachusetts

Moving can be an exciting time, but it can also be a stressful and expensive endeavor. It is a significant amount of work, from hiring a mover to packing to moving day. One of the major expenses when moving is purchasing moving boxes. However, there are several ways to get free moving boxes in Massachusetts, saving you money and the hassle of searching for them.

Dallas

In a bustling city like Dallas, where the urban sprawl can be extensive, choosing an apartment with easy access to public transportation is a smart move for commuters. 

Real Estate Market Overview & Top Technology Trends

For an outsider, the world of real estate looks impressive and genuinely easy to explore. Be that as it may, this couldn't be any further from reality. The world of the real estate sector has shown to be a complex and steadily changing business sector — one that has come so far from what it used to be only a few decades prior.

houses for rent

Are you in the market for a new home, but not quite ready to buy? Renting houses for rent can be a great option, but it can also be overwhelming. Where do you start? How do you find the perfect home? 

Affordable Places to Build a Home

Several states offer attractive opportunities when looking for affordable options to build a house in the United States. Oklahoma stands out with its cost-effective land and construction options, while Alabama compares building and buying existing homes. In Mississippi, there are budget-friendly areas for constructing houses.

Understanding Property Encroachment

Understanding property encroachments in Massachusetts is crucial for homeowners and buyers. Massachusetts law allows property owners to take civil action to remove an encroaching structure, provided they can prove ownership and successful adverse possession. Resolving disputes through negotiation is recommended, but legal options exist if necessary.