Investment Property in Los Realejos

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Buying Investment Property in Los Realejos?

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

Buying investment property in Los Realejos 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 Los Realejos are purchased by non Spanish Nationals and are either used as a holiday homes or straightforward by and hold investments in Los Realejos.

Once these properties have been renovated and rented then investors in Los Realejos 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 Los Realejos or elsewhere.

How easy is it to buy investment property in Los Realejos?

Buying an investment property in Los Realejos might be more complex, but Spain is a very welcoming country for foreign buyers as foreign ownership of properties in Los Realejos 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 Los Realejos 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 Los Realejos 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 Los Realejos?

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

Map of Los Realejos

Los Realejos is a town and a municipality in the northern part of the island of Tenerife, which is the biggest of the Canary Islands. It is part of the province of Santa Cruz de Tenerife, Spain. The town is located 2 km (1.2 mi) from the north coast, 5 km (3.1 mi) southwest of Puerto de la Cruz, 6 km (3.7 mi) west of La Orotava, and 34 km (21 mi) southwest of the island’s capital Santa Cruz de Tenerife. The inhabitants are known in Spanish as realejeros.

The population consists of 37,970 (2013), its density being 670/km2 (1,700/sq mi) and the area is 57.08 km (22.04 sq mi). The highest peak is 420 m (1,380 ft). Los Realejos is the western terminus of the TF-5 motorway.

The town is split into two distinct areas or districts:

These areas are distinct from each other in terms of their geography (a large deep ravine splits both) and their history (during the Spanish conquest of the island, the indigenous people Guanches had a settlement in the lower area of the town. In contrast, the Spaniards occupied the upper area). Furthermore, each area has its own Baroque church, both of which were built shortly after completing the Spanish conquest. The municipality was originally founded and known as Realejo de Arriba.

The town governed by its local council also includes other smaller villages such as Palo Blanco, Cruz Santa, Mocan, Icod de Alto, and Tigaiga. Over the years, an increase in population and housing have merged into what appears to be one big town nowadays.

Los Realejos also has a few beaches of note, Playa de El Socorro being the most popular one, not only with the locals but also with tourists. Other beaches like Playa de Castro and Playa de Fajana are worthy of mention, albeit they are slightly less accessible than El Socorro. Los Realejos is the home of the English language newspaper the Tenerife News. Los Realejos boasts the Shrine of Our Lady of Mount Carmel, which is the main Marian shrine in northern Tenerife.

Making Money on Investment Property in Los Realejos

The best way to make money on Los Realejos 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 Los Realejos

Fees for buying a property in Los Realejos 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 Los Realejos: 6–10% (existing properties) / VAT (or IVA) at 10% (new properties in Los Realejos)
  • Notary costs, title deed tax, and land registration fee in Los Realejos: 1–2.5%
  • Legal fees for buying investment property in Los Realejos: 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 Los Realejos, with a 18 year track record the agency has been directly or indirectly responsible for the largest volume of transactions in Los Realejos in the past two decades.

Types of investment property in Los Realejos

It is important to understand the main types of Investment Property in Los Realejos

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

Types of property investment deals in Los Realejos

The main types of property deals in Los Realejos are:

  • Buy to let in Los Realejos
  • Buy to hold
  • Serviced Accommodation in Los Realejos
  • Vacation Rentals in Los Realejos
  • Commercial Property in Los Realejos

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

Buy to hold in Los Realejos

Long-term rental property in Los Realejos 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 Los Realejos 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 Los Realejos 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 Los Realejos 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 Los Realejos 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 Los Realejos 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 Los Realejos property to Holiday Accommodation

For property investors in Los Realejos, 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 Los Realejos and then converting these homes into serviced apartments to maximize yield.

The types of property used for serviced accommodation in Los Realejos 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 Los Realejos 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 Los Realejos

  • 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 Los Realejos
  • 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 Los Realejos
  • 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 Los Realejos 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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