Investment Property in La Orotava

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Buying Investment Property in La Orotava?

Looking to buy investment property in La Orotava? It’s a sound choice, yet one that must be executed correctly. This article tells you about buying investment property in La Orotava, the types of deals available and the likely returns. Remember, buying property in La Orotava has, on average, yielded in excess of 8% returns per year, and significant capital asset growth.

Buying investment property in La Orotava with cash outright is also a sure fire hedge against any rise in interest rates. Some investors look to buy properties in need of renovation or a change of purpose. They then renovate those properties and rent them out on a long term or short terms basis. Many investment properties in La Orotava are purchased by non Spanish Nationals and are either used as a holiday homes or straightforward by and hold investments in La Orotava.

Once these properties have been renovated and rented then investors in La Orotava may refinance the property by taking a mortgage over the property at a higher value, using the income to pay the mortgage and reinvesting the profit from the deal into more property in La Orotava or elsewhere.

How easy is it to buy investment property in La Orotava?

Buying an investment property in La Orotava might be more complex, but Spain is a very welcoming country for foreign buyers as foreign ownership of properties in La Orotava has really helped lift and stabilize the local economy.

The procedures for buying a property in Spain as an expat are relatively straightforward. Before buying, you’ll require a financial number, which can be obtained by visiting a police station with your passport. This is typically processed on the same day for Spanish or EU citizens, but may take a little longer for other nationalities.

Financing an investment property in La Orotava can be done by cash or mortgage charge. It is often easier for expats to finance the purchase from their home country. Pre 2008 many Spanish banks in La Orotava would lend to international investors although they have been reluctant to do again, so even now.

What is the average price of investment property in La Orotava?

Average property costs per square meter in La Orotava are €1,722 per square meter, representing a solid, year on year growth trajectory of 8%.

Map of La Orotava

La Orotava is a town and a municipality in the northern part of Tenerife, one of the Canary Islands of Spain. The area of the municipality stretches from the north coast to the mountainous interior, and includes the summit of the Teide volcano, Canary Islands’ and Spain’s highest point at 3,718 m. At 207.31 km, it is the largest municipality of the island of Tenerife. The population is 41,255 (2013).

The town La Orotava, which is the administrative centre of the municipality and also its largest settlement, is situated near the north coast, at about 400 m elevation in the Orotava Valley. It is 4 km southeast of Puerto de la Cruz and 28 km southwest of the island’s capital, Santa Cruz de Tenerife. The TF-5 motorway passes through the north of the municipality.

The coat of arms of La Orotava was adopted by Alfonso XIII in 1906, the dragoons escorting the drago and the tree of golden apples refers to the mythology of the Garden of Hesperides, believed was located in La Orotava. In gastronomy, La Orotava was honored for the Denominación de Origen Valle de La Orotava or the Denomination of the Origin of the Orotava Valley (Valle de La Orotava) in wines.

The historic center of La Orotava was declared Conjunto histórico in 1976 and is included in the Inventory of the European Cultural Heritage Protection and Monumental. Also noteworthy is that much of the Teide National Park (a World Heritage Site in 2007) is located within the municipality. La Orotava is also the highest town of Spain and steepest, the municipality comes from sea level up to 3718 meters the Teide (the highest peak in Spain).

Making Money on Investment Property in La Orotava

The best way to make money on La Orotava Property is via an expert international investment fund.

Your Financial Advisor or Accountant won’t bring you the opportunities because of course they won’t receive their greasy commissions.

Investment funds are not even allowed to advertise so you’ll never hear of them unless a friend recommends them.

You will need at least some experience with previous investments to be eligible and of course these funds are extremely picky about the investors they accept. They can afford to be. They don’t need your money, but they can put your money to work for you like never before.

Costs of buying a property in La Orotava

Fees for buying a property in La Orotava vary from area-to-area, and many are negotiable – for example, there are no fixed fees for lawyers or estate agents. Buyers must pay the majority of the costs, which are generally as follows:

  • Property transfer tax in La Orotava: 6–10% (existing properties) / VAT (or IVA) at 10% (new properties in La Orotava)
  • Notary costs, title deed tax, and land registration fee in La Orotava: 1–2.5%
  • Legal fees for buying investment property in La Orotava: 1–2% (including VAT)

The seller usually pays the estate agent fees in Spain. Estate agents usually charge their fees as a percentage, typically around 3% of the final sale price.

Who is the Best Real Estate Agent in Spain?

PRestates is a multi-award winning Luxury Real Estate broker in La Orotava, with a 18 year track record the agency has been directly or indirectly responsible for the largest volume of transactions in La Orotava in the past two decades.

Types of investment property in La Orotava

It is important to understand the main types of Investment Property in La Orotava

  • Undeveloped land in La Orotava
  • Commercial property in La Orotava
  • Residential real estate property in La Orotava
  • Operating property investment in La Orotava
  • Distressed property investment in La Orotava
  • Investing in a World Class fund with activities in Spain, and in La Orotava

Types of property investment deals in La Orotava

The main types of property deals in La Orotava are:

  • Buy to let in La Orotava
  • Buy to hold
  • Serviced Accommodation in La Orotava
  • Vacation Rentals in La Orotava
  • Commercial Property in La Orotava

The Most Successful Property Investment Fund 2020 : Click Image to Download Prospectus

Buy to hold in La Orotava

Long-term rental property in La Orotava is widely considered one of the best ways to diversify your property portfolio. So buying and owning property means much more than just investing in a single property, it can bring you a variety of benefits, such as access to a variety of investment opportunities and the benefits of long-term ownership.

While some investors in La Orotava may be confused or intimidated when they start, buying and owning property can be one of the best investments you can make if you do your due diligence before you start.

The rental income from investment property in La Orotava generates short-term income that can be used to pay off a mortgage or to invest money. The strategy of buying and holding property is one of the most common investment options.

The value of the La Orotava property will increase over time and the investor will benefit if he is willing to sell it later. The investor benefits from being bought in the expectation that the value of the property will rise over time.

Investors considering a La Orotava property purchase and holding strategy should do their best to calculate the potential income from renting out the property. The bottom line is that monthly income should exceed the cost of rent in the first year of ownership and annual rental income over the next five years.

If the investor plans to sell the La Orotava property later, possible profits should also be taken into account. Finally, any losses from taking out a mortgage or other type of property financing must be taken into account, as well as any gains from the sale.

Convert La Orotava property to Holiday Accommodation

For property investors in La Orotava, converting a home into a serviced apartment would mean higher rents than the normal rent increase. As a result, many people are buying investment property in La Orotava and then converting these homes into serviced apartments to maximize yield.

The types of property used for serviced accommodation in La Orotava are often the same as those you would use to buy to let. Where you have a guaranteed short-term rent, it’s not as rigid as renting out a property.

Lease La Orotava property to the Worlds Best Rehab

Remedy Wellbeing is a bespoke, luxury treatment center with a significant corporate footprint in Spain. This means they treat just one client at a time in luxury 6* accommodations. All properties used by Remedy Wellbeing are as unique as they are inspiring. If you own or represent some of the most exceptional, unique and luxurious accommodations in Spain, Remedy Wellbeing can be contacted via their dedicated property management company, Physis Realty.

Disadvantages of investing in Serviced Accommodation in La Orotava

  • Holiday accommodation is more of a business strategy than a property strategy, and the workload is far more intensive.
  • You’ll need to furnish your holiday rental accommodation in La Orotava
  • You’ll need to clean the rooms and change the sheets every time your guests leave.
  • Who does all the laundry?
  • Who does all the cleaning?
  • Who’s going to do all the work for you in La Orotava
  • How are the guests actually going to get in?
  • Are you going to have somebody to do a meet and greet?

Buying investment property in La Orotava to convert into serviced accommodation or holiday lets is not really considered an investment, because the amount of work involved make it a full time job.

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