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A second home in the most wanted area of Tenerife

Interview in TNT Magazine Tenerife - The Dutch Magazine

“Through the letting, an owner not only wants to obtain income to cover the fixed expenses, but also wants to obtain an extra benefit from his investment”

In what does the Baobab Resort differ from other complexes?
Filip: The difference is that in Baobab we can offer the owners a professional rental management service for both short as well as long term rentals. In other resorts this is not possible!

Purely residential complexes have the problem that for short periods (less than 3 months), when the owner is not present, the property cannot be rented out legally. Also, there are no cleaning services provided nor is there a maintenance service. This kind of property will thus provide a lower benefit because of having your property empty during your absence. In the Baobab Resort a professional rental service company will be taking care of all rentals.

The formula is based on 3 observations.

Firstly, there is a growing need to find property which generates a turnover. Thanks to our sales experience, it is very clear to us that offering a turnover for a holiday home plays a decisive role at the moment of purchasing a property abroad. The owner not only wants to cover the fixed expenses, but also wants to obtain a benefit from his investment. Moreover most owners do not want to depend from an acquaintance or a local and unknown office, but they are looking for a professional treatment of their property.

Secondly, the problematic Spanish rental system is also a big issue. For families with children there are actually more than enough hotel rooms available, but a wide selection of holiday apartments where the entire family can stay together simply does not exist. Also, the offer of large holiday apartments will be lower from now on because of the strict controls over the illegal rentals in purely residential complexes. And thirdly, the always younger generation of owners is now looking for a combination of holiday and benefits.

It becomes frequent that often younger people decide to buy a second home. Not only to be able to enjoy the property to the fullest during their short holidays, but also to obtain a high benefit during their absence.

Which kind of benefits can an owner expect?

Thanks to the years of experience Second Home Tenerife has in this wonderful area of El Duque, the rental incomes are expected to be above the average. Taking in account the prices of the surrounding hotels, we are expecting an excellent turnover. The professional rental management team will be available 365 days a year. The owners will be paid pro rata according to the amount of days they want to rent out their property. Each personal turnover will of course depend on how much the owner occupies his own apartment.

What kind of capital gain can be expected when the property is put up for sale again?

We have high expectations, especially for the (middle) long period, as by then the good reputation and results of Baobab will be more than known. We are certainly expecting a rise between 5 and 10% per year.

We have obviously also taken great care in offering great payment facilities to maintain the formula payable. So, for a top of the range property with an excellent situation and an interesting price with very appealing payment facilities:
Prices start at 243.018 euros, there is a reservation fee of 10.000 euros, only 40% is to be paid with the start of the building works, and the remaining 60% is only payable upon completion, which is foreseen for end of 2010. Moreover, we can also already fix the mortgage from before the real purchase of the property.

Retired UK citizens could leave their home country to avoid the recession

Already over 400.000 Brits planned to leave Britain to try and become a better way of life or also for financial reasons, and now on top of that, pensioners of over 50 think of doing the same as they find it financially very hard to tie the ends together in UK.

Lower living costs also add to making the decision to live abroad, no or lower heating costs, a better climate, cheaper housing, etc..

Add to this that the European Commission confirmed Spain would recover faster from the economic recession, and you have all the pluses for people to go live abroad. Rentals are also recently gaining popularity, mainly because there is a big gap between salaries and purchase prices.

Costa Adeje is the number one cosmopolitan tourist area!

Costa Adeje has been described as one of the leading destinations for Brits.

The Independent states that millions of holiday makers are travelling abroad during the bank holiday period to soak up some very much wanted sun.

The newspaper commented that many are heading to the established European destinations like Spain. Several London-based airports are set to be particularly busy, with for example over 185,000 passengers leaving Heathrow. In total, over a million will be travelling through the terminals of Heathrow, Gatwick and Stansted, only last weekend.


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