|
Tenerife Property for sale can be found advertised by hundreds of Real Estate Agents on the island. You will find also that the same property can be found advertised by many different agents and often at different prices. This is because the selling process is different to the UK system. In Tenerife the property owner will place his or her property on the books of a number of agents and is not subject to a sole agency agreement as in the UK. The different agents may have different commission fees and basically they add their fees to the price the property owner wants unless the owner states a uniform final price is what he or she wants advertised.
Property prices can vary on the island greatly its all about location, location, location. If you want to live on the coast you pay a premium and if you decide to live further inland you will find prices decrease dramatically. That’s not to say you have to live a long way inland as you can find prices just a short 20 minute car ride away from the main popular areas can reduce dramatically. When you do decide to buy a property in Tenerife you will have to decide whether it is for your use only or if you intend to rent the property to gain an income. If it is for your use only then it is you preferences and budget that decides the property. However if you intend to rent the property then you must take into account the location and facilities available. You must buy the property not for your preferences but your potential renter’s preferences such as location, how far to the beach, what shops and restaurants are close by and does the property have a pool.
There are associated fees with buying and selling property in Tenerife and if you are buying a property you will need approximately a further amount of 10% of the property value for Taxes and fees. If you are selling your property you will find that most agents will charge you a 5% fee. In addition when you sell your property you could find that you are liable to Capital Gains Tax of 18% of the increase in value of the property. This particular tax has just undergone reform and has been reduced from 35% for non residents and increased from 15% for residents, this happened in January 2007. For a non resident they will have a retention of 3% withheld from the sales price to cover the tax bill, if you consider that this is to much you will have an opportunity to reclaim part or all of it after completion.
When you are a Tenerife property owner you will of course have running costs to pay such as community fees, water, telephone and electric. Your utility bills are normally paid every two months by direct debit from your Spanish bank account. Your agent will assist you in opening an account and setting up your payment arrangements.
|
