The Tenerife property market & Coronavirus early 2020

I thought this month’s newsletter might be good to do on video.

So, have a look down below, there’ll be some answers to some of your questions. Maybe you’re thinking about buying, maybe you’re thinking about selling.

So let us get into the questions.

A lot of people are probably thinking is now a good time to sell? If you’re property’s on the market, I’d keep it on the market for now.

I don’t think you need to really think about dropping the price unless you’re really that keen to sell. I do think, though, that you need to consider if anyone comes along with an offer when we’re back into the normality of life, I think you need to consider it strongly because every buyer who’s gonna be coming to you directly after the lockdown is probably a serious buyer so that’s all I’d say.

Probably keep it on the market. Don’t rush to drop the price but just consider any offers that come in as serious and then just work out whether or not you’re really in a desperate need to sell and if you are, then you’re gonna have to negotiate quite strongly on price.

But if you’re in no real rush then of course, hold fire and the other buyers will come in due course.

So what if you’re a buyer? If you’re a buyer now and you’ve got funds, you could be in a decent situation, a decent position where there may well be a seller who’s keen to sell and keen to negotiate on price.

If they’ve had their property on the market for a while, then of course they might very well be up for a bit of negotiation on the price. So again, if you’ve got funds ready, I think that’s gonna be the main point.

If you can perhaps provide proof of funds, then you’re gonna be in a strong negotiating position for any of those people that are keen to sell or those that have a great need to sell and might be open some sorta negotiation.

If you’re a buyer and you want to look at properties, well as you well know I do a lot of videos, and when we’re allowed out, after the 26th of April, or after that, maybe the mid-May some people are talking about.

I’ll still be out and about, and I’ll be doing videos. Now if you are a serious buyer, and you’ve got funds ready, and you want to buy something that someone’s very keen to sell, then maybe we’ll be able to do some sort of a video for you, a live video.

And then you have a good look around the property. If you know the complex already, and you know the area, then you might well be up for a good deal. So, there’s something obviously that I’ll be prepared to do for you anyway.

So, keep your eyes open for that, and let me know if you’re interested.

So, what about mortgages after the restrictions have been lifted? We’re not exactly in a banking crisis.

You might have some banks, perhaps, thinking about maybe restricting lending to certain people, but, you know, it’s really, in my opinion, and I’m no economist or anything like that, but in my opinion, I don’t think it’s gonna be that long before, maybe six months, but before we start getting back to absolute normal like we were.

And, if you’re thinking about a mortgage, then currently the banks, they might want to start thinking about restricting or changing loan to values or the amount of deposit you’re going to have to put down, or might even look at your income multiples as well in a different way.

But, I don’t think it’ll be that long before things are back to as we know them to be normal.

So what about those of you that wanna put your property on the market now? Give me a shout. If you’ve got access to it, if I’ve got access to it via some friends or family with a key or something like that, key holder here.

I’ll be happy to go in there and do a video. I nearly always do videos of all the properties we take on so that’s a massive step in the current sort of situation we find ourselves.

People will be able to see in your house, have a good look around and the work out whether they would be interested or not. So as I say, that’s a standard thing but if you are interested, then let us know.

So I suppose there’s a question on a lot of peoples minds is is the property market in Tenerife gonna bounce back? I don’t see why not. So as I said earlier in the mortgage question, the lending strategy of the banks may change a little.

I’m not sure how much that’ll change or how long for but I don’t see why, necessarily has to affect the whole property market. Sure, things are gonna be hanging around for a while because people aren’t gonna be able to come over and see them.

And maybe there are people who are, perhaps a lot keener to sell than others. Perhaps there’s illnesses in the family or something like this. So, maybe there’s gonna be a good deal out there and that’ll go quickly.

But are we gonna get back to some sort of stabilised level of the market? I think we will, probably in six to eight months. Almost certainly by the end of the year, I think we’ll be back to some sort of normality, anyway.

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