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View Full Version : Are purchase/long term rentals prices reducing in Tenerife?



colin7777
04-12-2011, 17:51
Are more properties coming on the market or are prices being reduced due to the the problems with illegal rental.

Also are there more long term rentals available and are rentals prices reducing.

Regards

Colin

TenerifePool
04-12-2011, 20:57
Property prices in general and long term rentals have been falling for some time now, but this has been due to the general economic situation, unemployment, and supply outstripping demand. Any effect from a few residential properties coming on the market because the owners cannot holiday let will be merely a drop in the ocean.

Peterrayner
04-12-2011, 21:06
Our 1 bed residential long term let has fallen from about 600e per month all in (2005) to 500e all in (2011) It was snapped up within 2 days of becoming avaiable last month.

princessmonika
05-12-2011, 08:53
how much money a month would that be, after all the overheads are taken off ??? nett profit???

Peterrayner
05-12-2011, 09:01
community 100e per month
electricity 30e
water 10e
basura 10e
insurance 10e
IBI 10e
maintenance/replacments 15e
accountant fees 15e

profit 300e
income tax 80e

balance 220e

princessmonika
05-12-2011, 09:06
and what about mortgage per month if any

Peterrayner
05-12-2011, 09:29
and what about mortgage per month if any

The 1 bed is mortgage free (hopefully for my retirement :) ) the balance just about covers the expenses on the 2 bed, apart from the mortgage which will be paid off on my retirement (5 years) and will then proved a rental income (pension)

at least thats the plan if the euro doent go tits up.

Its a long term plan started in 2003 so hopefully unaffectd by the curent situation. :)



I hope so anyway

princessmonika
05-12-2011, 10:48
that sound good i don't think the euro will go, because to much hangs on the euro-- it will create problems for the world trade so it will be sorted in my view--