We were a group of a dozen adults including a young couple who, after visiting the island several times, decided to relocate here with their family. They have two children and were seeking advice from us ‘old timers’ on living here. Of course, everyone had opinions of what was best for them, including work, schooling and of course whether to buy or rent a property in Tenerife. Although the majority of us were homeowners, we agreed that at least in the short term renting a property in Tenerife would probably be their best option. They knew where they wanted to live but living here is very different to being on holiday and it takes a while to get out of holiday mode and into real life.
With house prices falling in most areas many people are rethinking the merits of home ownership. If you are moving for a new job or a new life, renting a property in Tenerife makes the most sense as it allows you to investigate without too many financial risks.
A few days later, I read in News in the Sun that around 40,000 new homes remain unsold in the Canary Islands and the problem is worse in the province of Santa Cruz de Tenerife, which has 23,400. If new houses aren’t selling, what is the likelihood for a pre-owned property – I would guess pretty slim. Some homeowners will rush to their estate agent, shouting sell no matter what, even if this means crushing their original asking price in a panic to off load their property. However, I saw this option on Tenerife Island Rentals and thought it sounded excellent, it is certainly something I’d consider if I couldn’t achieve the asking price I wanted.
The rental market has always moved faster than the sales market particularly in holiday areas and the winners are the people who are renting their property in Tenerife. Following changes in holiday habits from package deals to DIY means there has been a rise in the demand for privately rented accommodation. This can be either short term in the summer months or long term from November to March when many people come to live in Tenerife and rent an apartment for between 3 and 6 months.
There are also the residents, or new families like the above, who like the fact that they don’t have to commit to a mortgage. The current market means if they want to rent a property in Tenerife there are deals to be found. They have the choice of living in luxury with lots of amenities, waterfront views and vibrant lifestyle that they could never have afforded during the boom. It’s not ‘bargain’ living, but it is a lot cheaper than buying.
Of course, renting a property in Tenerife will not be the best option for everyone, especially if you are planning to purchase another property and need to put down a deposit, but if that is not the case and you have an investment property, the rental income may be enough to cover any mortgage payments. As far as I can see everyone is a winner, I think we gave the newbie’s good advice at least I hope we did!