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
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
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
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
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.