PDA

View Full Version : Advice needed about buying property in Tenerife



Candy
12-06-2012, 09:47
Hi everyone, thinking of buying an apartment in the Costa Adeje area of Tenerife.
Looking for as much help as possible with it, with regards to how easy or difficult it is.
Any help would be appreciated.

Thanks,
Candy

Foz
12-06-2012, 10:10
Hi everyone, thinking of buying an apartment in the Costa Adeje area of Tenerife.
Looking for as much help as possible with it, with regards to how easy or difficult it is.
Any help would be appreciated.

Thanks,
Candy

Hi Candy x I own in the Costa Adeje area ... what would you like to know?

Candy
12-06-2012, 10:28
Hi Foz, basically just looking for how procedures work. Would I need lawyers in Tenerife or at home or both? Roughly how long would it take to purchase and what kind of deposit is required? Once purchased, how do rates work? Any other outlays?

Thank you,
Candy

Tom & Sharon
12-06-2012, 10:48
Ask CIM or Young Golfer for advice, that's where you'll get your best and honest advice.

Candy
12-06-2012, 11:15
Ask CIM or Young Golfer for advice, that's where you'll get your best and honest advice.

Thank you, I will do that too :)

Foz
12-06-2012, 11:55
Hi Foz, basically just looking for how procedures work. Would I need lawyers in Tenerife or at home or both? Roughly how long would it take to purchase and what kind of deposit is required? Once purchased, how do rates work? Any other outlays?

Thank you,
Candy

Hi Candy,

Whether you employ a lawyer or not is entirely up to you. A lot of people don't .... but then complain that they don't fully understand everything involved in purchasing their property. I would advise you use a lawyer ... especially if it is your first purchase here. Once a deposit is paid and a purchase contract signed it "usually" takes three to four weeks to complete the sale. If a mortgage is required it could take longer. Most agents seem to ask for atleast a 10% deposit, but that would depend on the seller so could be more. If you were to pull out of the purchase you would lose your deposit ... if the seller were to pull out the contract would normally state they would have to return your deposit PLUS pay you the same amount on top by way of compensation. The buyer would usually pay the notary fees and purchase tax. Most people say if you allow 8% on top of the purchase price to cover your expenses you should get some change out of that. (If you require a mortgage you should allow 10% to cover your purchase costs.) Once completed, you would have to pay IBI once a year (this is the equivalent of rates in the Uk) the estate agent should inform you how much this would be. Plus, you pay BASURA tax (this covers rubbish collection) twice a year. This comes to just over 80€ for the year. Apart from that you will need to pay community fees to cover the costs of the running of the community, your estate agent would tell you how much this is. Plus water and electric (sometimes included in the community fees.) It all sounds quite complicated but is surprisingly simple really. Hope that helps x

Leam_Lin
12-06-2012, 12:05
Thats about right plus your annual tax return.

Candy
12-06-2012, 12:16
Hi Candy,

Whether you employ a lawyer or not is entirely up to you. A lot of people don't .... but then complain that they don't fully understand everything involved in purchasing their property. I would advise you use a lawyer ... especially if it is your first purchase here. Once a deposit is paid and a purchase contract signed it "usually" takes three to four weeks to complete the sale. If a mortgage is required it could take longer. Most agents seem to ask for atleast a 10% deposit, but that would depend on the seller so could be more. If you were to pull out of the purchase you would lose your deposit ... if the seller were to pull out the contract would normally state they would have to return your deposit PLUS pay you the same amount on top by way of compensation. The buyer would usually pay the notary fees and purchase tax. Most people say if you allow 8% on top of the purchase price to cover your expenses you should get some change out of that. (If you require a mortgage you should allow 10% to cover your purchase costs.) Once completed, you would have to pay IBI once a year (this is the equivalent of rates in the Uk) the estate agent should inform you how much this would be. Plus, you pay BASURA tax (this covers rubbish collection) twice a year. This comes to just over 80€ for the year. Apart from that you will need to pay community fees to cover the costs of the running of the community, your estate agent would tell you how much this is. Plus water and electric (sometimes included in the community fees.) It all sounds quite complicated but is surprisingly simple really. Hope that helps x

Hi Foz, it has helped alot.

Thank you,
Candy

- - - - - - - - - - merged double post - - - - - - - - - -


Thats about right plus your annual tax return.

Thank you, can you tell me what you mean by the annual tax return please

Candy

Leam_Lin
12-06-2012, 12:27
Just for owning a property in Tenerife regardless of you renting or not you have to put in a tax return.

Can't remember the new name it used to be called 'wealth tax'

I'm sure someone will come on soon with the correct name.

Simon-M
12-06-2012, 12:54
If you are looking to let it out to holiday makers you need to read the "illegal lettings" thread to see if you might be affected by it.

tenerifeslaps
21-07-2012, 12:19
Hi, Foz you advised Candy to get a laywer when buying a property over here.
We are in the first stages of buying at the moment and a bank owns the property and is hopefully giving us a mortgage as well. We assume that the bank can be trusted to all the administration for us acting on behalf of us as a laywer would do? Or would you still employ a lawyer?

CIM
21-07-2012, 12:26
Hi, Foz you advised Candy to get a laywer when buying a property over here.
We are in the first stages of buying at the moment and a bank owns the property and is hopefully giving us a mortgage as well. We assume that the bank can be trusted to all the administration for us acting on behalf of us as a laywer would do? Or would you still employ a lawyer?

No the bank CANNOT be trusted to do anything right... The level of incompetence of some of the staff in these banks really is incredible. Plus they offer no advice whatsoever on touristic vs residential, utility connection after purchase, mortgage terms and conditions, linked products with the mortgage etc etc.
Get someone to do it for you and deal with the bank on your behalf and if they dont play ball - walk away.

Foz
21-07-2012, 17:21
No the bank CANNOT be trusted to do anything right... The level of incompetence of some of the staff in these banks really is incredible. Plus they offer no advice whatsoever on touristic vs residential, utility connection after purchase, mortgage terms and conditions, linked products with the mortgage etc etc.
Get someone to do it for you and deal with the bank on your behalf and if they dont play ball - walk away.

Hi Tenerifeslaps ... I agree with everything that CIM has said x You would be shocked to hear some of the misinformation provided by banks out here!!!