Buying property abroad can be a daunting experience, so although I have a full run down of the buying procedure in Tenerife here for you to look through, here are my top tips for buying property in Tenerife.
1. Always use a lawyer. Many estate agents will say that they will handle the paperwork for you – don’t let them. The cost of using a lawyer could well save you more in the long run and if anything goes wrong, the lawyer will be held liable – an estate agent won’t.
2. Do your research before you buy. Many people will leave their brain at home when they come to Tenerife to buy a property here. They’ll do things that they wouldn’t dream of doing in their own country. Research is key.
3. Use a Foreign Exchange Broker. Many people using currency different from the Euro will use their banks to transfer the funds to buy a property in Tenerife. The thing is the bank is not your friend…they will not be giving you the best exchange rate for your transfer and if you are transferring a large amount of money, this could amount to thousands saved for you.
4. Buy through a known estate agent. Here in Spain there is no legal requirement to be a member of an industry association and although there are plenty of trustworthy agents, there are quite a few less than trustworthy, so I would say use an agent that you can see has been recommended by others.
5. Make sure you have set aside money for taxes and fees. You might be excited about buying your new holiday home, but make sure that you have between 8% and 10% of the agreed purchase price held back to pay notary, land registry and lawyers fees and the tax for buying a property here.
6. Location location location. In the plain light of day, this is quite obvious, but when you’re being shown loads of lovely property to buy and the sun is shining and maybe you’re suffering from last night’s over indulgences, you may not be thinking straight, but as always location is of great importance.
7. Don’t be rushed into anything. You’re going to have to sign paperwork and you’re going to have to pay money over, this is all standard stuff…but don’t be rushed into doing anything. Don’t be fooled into the “…this is the last one available…” trap. Maybe it is the last one and if you like it and you are happy then fine, but don’t be rushed.
8. Consider the resale. One day you’ll be doing the selling. Think about the future and the people that you will be able to market your property to when the time comes to sell.