Have you missed your opportunity in buying property in Tenerife?
Have you ever, during your lifetime…just felt that you should have done something a while ago, but now feel that it’s too late and maybe you’ve missed the boat?
I wasn’t in Tenerife 25 years ago, but I very often wonder that if I was, would I have bought property or would I have thought it was too expensive at that time.
Have you missed the boat or is this the perfect storm?
When I hear or see what some of my sellers paid 25 years ago for the property they’re selling now, I always think to myself that if I was here then, at that price, I’d have bought them all.
But of course, it’s all relative.
Property prices today seem a lot more expensive in comparison to 25 years ago, but of course back then, your earnings weren’t the same, so although you think that property now is more expensive than way back then, you’d have been in the same position…you were a lot younger then and probably didn’t have the savings or the wherewithal to go out and leverage those savings to buy 2 or 3 properties.
Back in the early 90s in the UK, I knew a friend of a friend, Andy his name was, and every time I saw him, he always said that he was going to buy a property because “…the UK market has hit rock bottom”, I really can’t remember how many times he said that, the trouble is, for as long as I knew him he never did buy a property.
The thing is, in the year 2042, when you’re still thinking about this, are you going to look back and wish that you’d bought that property in Tenerife 25 years ago “in 2017/18” when prices were a lot cheaper?
There’s possibly never going to be a perfect time for you to buy a property here but there’s going to be a good time…and that time could be now.
Is this the perfect storm?
Property prices have easily hit rock bottom and we’re seeing prices start to increase…and fast in some areas.
I’ve just looked at my records and when I first started selling property in Tenerife back in 2009 – all those years ago…!!!, I had a 1 bedroom apartment in Los Cristianos on the seafront for €99.995…now, in 2017, you can’t even buy a studio for that in Los Cristianos.
Prices are on the rise, if you’re seriously thinking about buying a property here in Tenerife, prices probably won’t be like this for another 10-15 years, until the next financial crisis…and don’t worry yourself too much about Brexit, as I’ve said many times before, I can’t see it affecting much at all for the British buyer…and that’s if Brexit actually happens anyway (there, I’ve said it again on record).
At the moment, if you’re a US, Australian or Chinese citizen, you can still buy here. There are about 330.000 Britons living in Spain and approximately 300.000 Spanish living in the UK…what are they all going to do? Is the British government going to tell all of the Spanish to get out and vice versa?
If Brexit does happen, then maybe British buyers will have to fill in another sheet of paper amongst all of the other paperwork that needs to be done… I don’t know, nobody does, not even the British government knows what’s going to happen…
Every month, the Notaries’ Association report on the volume of monthly property sales and it’s reported an increase nearly every month since January 2014, although property sales in the whole of Spain are still 40% less than they were in the height of 2007.
Asking prices today for a 1 bed in Los Cristianos can easily be €150.000 plus and show no obvious signs of falling in the short term. In fact, Kyero – a well-known property portal – says that property sales in the municipality of Arona, which includes Los Cristianos have increased by nearly 25% since last year and property prices have risen by 5.9%…although they’re still well below what they were in the hazy days before the crisis.
In 2015, Tenerife came 8th in the list of most expensive places to buy in Spain, behind such cities as Madrid, Barcelona and Ibiza to name a few.
Lending is still cheap ad also banks are becoming a bit more flexible, so there are plenty of buyers about at the moment, keeping prices on the rise. Once again, Kyero report that mortgage completions have increased by 33.5% over the last 12 months.
One of the things you’ll probably have some concern over is the Sterling/Euro exchange rate and that is a question only you can answer at the time of your purchase…is it worth sending the money over now or do I wait a bit?
That’s something you’ll just need to bite the bullet on I’m afraid…it’s been just the same for those that have walked in your shoes before you and it’ll be the same for those that’ll be walking in your shoes behind you.
So, is it the right time to buy now in 2017/2018?
Let’s put it this way. I don’t think it’s a bad time, prices are still good, affordable and there are still some bargains to be had.
It’s always going to be a risk, but if you think you’re going to regret it in years to come, don’t let the opportunity slip away from you.