After the Storm: Why Tenerife is the Perfect Climate for Investors

As the recession unravels, the elements that caused the perfect storm for real estate are now creating the perfect conditions for property investors to feast again.  Here are 5 of the most important reasons why investors are sensing the change of weather and creeping hungrily out of their recession hibernation, armed with a new sense of confidence.  All over Spain, the property trade press the estate agents are reporting their return and Tenerife is no exception. 

1.    A Cloudless Sky

Mortgage lenders in Spain are still very cautious, lending low in relation to property values.  This works well for cash rich investors because it means that there are fewer buyers on the market and less competition.  Just like the weather in Tenerife, the climate for investors has few clouds.

2.    Just the Players

As the end of the recession draws to a close, most of us are still in shock.  It hasn’t dawned on most people that now is the time to buy, and in many cases it won’t until the bandwagon gets big enough.  That’s the time when the alert investors of today will be cashing in!  With most potential investors still at home, licking their wounds, the field is empty for the real players.

3.    Picking the Plumpest

The investors prowling the market right now are spoiled for choice.  With record numbers of properties on the market, today’s investors are like lions sitting in the midst of a large herd of caged zebra.  They just have to decide which is the plumpest.

4.    Easy Meat

Investors, like any predators, are drawn to the lame prey.  There are Tenerife property owners out there who have been harder hit by the recession and who are flagging before the final hurdle.  These distressed sales are easy meat for investor buyers.

5.    The Best End of the Stick

Some property owners have had their home on the market for a year or longer.  Many are demoralised and lack confidence in the face of so much competition from other properties for sale and still relatively few buyers.  Investors, on the other hand are full of confidence; they know the market is on its way up.  It’s not hard to see which will get the best end of the stick when negotiations begin.