While we hear news reports from the UK of almost biblical flooding, the weather here is glorious. As always, we have some interesting articles for you, starting with the upward trend in long term lettings. You'll probably be hearing a lot about this in the future, but remember, you read it here first! We follow that in a light hearted vein with a poetic contribution from an eleven year old, look at the progress of two new developments and a look back into history with Admiral Nelson. As always, we have some of the more interesting news cuttings from the island, and inspired by all the ‘REBAJAS' posters in the shops, we have a summer property sale! All the best bargains and deals are laid out for you to pick from.

Tenerife has one of the fastest expanding populations in Europe. Unlike many areas, where economic refugees make up the largest sector of new immigrants, the South of Tenerife's influx of residents would best be described as climate and lifestyle refugees. And this is a very different type of settler, generally more mature, accompanied by at least a partner, but often a family, and almost certainly more affluent. These modern refugees are starting to have a substantial impact on the rental market, and canny investors are starting to jump on the bandwagon.

But it is not just foreigners who are creating the demand. Jose Antonio Herce, an expert from the think tank, ‘Economía de Analistas Financieros Internacionales' cited the growth in the local population as another important influence, at a conference at the end of June. He said that between 1965 and 1975, the Canaries experienced a ‘baby boom', creating a spike in today's demand for housing. As in the UK, many first time buyers struggle to get onto the property owning ladder, and their only alternative is renting.

This shift in demand is one that has almost entirely been ignored by foreign property investors, but increasingly, they are waking up to this trend. One major advantage for an investor is the steady and predictable income. Overheads are easier managed when you know what's coming in next month. Management costs are obviously drastically reduced. Long term renters don't need to pick up keys, get their towels changed or require regular cleaners. They also don't need to live on holiday complexes, where community fees are higher. But the biggest advantage is in the marketing costs. Whether you contract your holiday home to a management company or rent it yourself, the apartment needs constant marketing to people who only rent it for a week or two. With long term letting, an agent may need to be used once a year, but their service is free to you, because they charge the tenant.

As with any investment, you need the right strategy, and you need to choose your investment with care, but there are opportunities throughout the spectrum. Long term renters look for a different type of property from holidaymakers, and these requirements will vary, depending on which type of tenant you wish to target. Of course, much of this is common sense. Long term renters need to have shops and amenities at a convenient distance, they also prefer quieter complexes and families will need to consider schools. But there are other considerations to take into account as well.

A major factor is size. People staying on the island for longer than a week or two are likely to need more space as they will have more than a suitcase to unpack. They will probably want parking and a second bedroom, both for visitors and for further storage space if they are a mature couple, as are many of these new expatriates. A perfect example might be an apartment on Terrazzas de la Paz, in Golf del Sur.

GOLF00776 is on the market for 175,000 euros. An investor taking out an interest only 80% mortgage would be repaying just under 650 euros per month and charging 800 euros rent, leaving a healthy margin to cover community fees and any other costs. If we assume a pessimistic capital growth at 5%, then this would add just under 9000 euros a year in value to the kitty.

As the demand for places at local schools rises with each passing month, it is evident that families are increasingly moving to the South. The Spanish tend to stay at home until they are much older than those in Britain, but there is one thing that is guaranteed to make them fly the family nest, and that is children. The Canarian Baby Boomers are having children and leaving home. Naturally, they are settling in areas that are economically prosperous, and the tourist areas of the South of Tenerife provide them with the opportunities they are looking for. Add to them the lifestyle refugees from abroad, and together they create a substantial influence on the market. This lucrative family sector has certainly made an impact on the demand for 3 bedroom properties. Townhouses, for example, in the popular Torviscas area of Las Americas fetched about 900 euros per month three years ago, whereas now these properties are more likely to fetch 1200-1400 euros per month - an almost meteoric rise.

Smaller apartments, in the centre of town are likely to suit the many thousands of expatriate workers on the island, who may not be drivers, and therefore proximity to the tourist areas, where their jobs are, is going to be a major factor. For example, a newly refurbished one bedroom apartment in the centre of Las Americas would earn about 600 euros rental.



LA01164, has an asking price of 125,000 euros, with an 80% interest only mortgage this would come to about 460 euros per month in costs. Adding our pessimistic 5% capital growth figure, the value would rise by over 6000 euros per year, a not inconsiderable sum to add to the equation.

This form of investment particularly suits people who are planning an eventual move to Tenerife, allowing them to buy a property at today's prices. As conditions in the UK become less favourable for buy to let investors, many of these are also casting an eye further a field. Whatever the reason, long term rental investments in Tenerife are becoming increasingly lucrative as the cost of renting rises, and the trend is set to continue for the foreseeable future.

A contribution from a youthful fan of Tenerife...

Hooray, hooray it's holiday
We flew out to the sun
Me and Dad, my sister Faye
My Playstation and Mum
We're staying in my grandpa's place
They moved here just last year
He said "life moves at a better pace"
And that Grandma likes the beer

Funny how they're far away
We see them both much more
We stay a week not just a day
And they're more fun than before

"It's cold, it's cars, it's all that stress"
Smiles Grandma, folding towels
"The country is an awful mess"
My grumpy Grandpa growls

I like the sun, the sand and sea
And everyone in a good mood
Mum likes shops, a tan for free
And Dad likes golf and food

I wish we lived here all year round
And Tenerife was home
Grandpa says the idea's sound
His agent's on the phone

They won awards, they're really good
And Grandma liked them too
Oh please Dad, you know you should
Make a family dream come true

Matthew Richards (aged 13)

Las Olas, the popular and very trendy new development of 2 bedroom apartments in Palm Mar has just announced the release of their fourth and final phase. Just 10 minutes from the airport, this new residential area is a small triangle snuggled between the natural beauty of Montaña de Guaza and the Malpais de la Rasca Nature Reserve. Unlike the rest of Southern Tenerife, which has grown organically, Palm Mar has been planned from the outset, so it will suffer none of the teething pains suffered elsewhere. The apartments are set around a fabulous 1200m2 pool, inspired by Cambodian temple lakes Las Olas means ‘The Waves', and the flowing concept captures the mood of the nearby ocean. Beautifully designed, there is a show apartment available, so why not book a viewing when you're next on the island? Prices on Las Olas start at just 230,000 euros.

Our intrepid sales advisors have been taking photos from the viewing platform located at Royal Marina Golf, the new development in construction in Amarilla Golf. The platform has been constructed to show how the view will look from these two bedroom apartments, and we're sure you'll agree that they are gorgeous.

View from first floor





Prices start from just 262,500 euros. If you're interested in finding out more, just ask us to send you an info pack.

If the security clampdown at the airports has made you think that you have had a hard time reaching Tenerife, then consider the plight of Admiral Nelson two hundred years ago. Back in July 1797, his landing on the island was repelled by Spanish forces and he famously lost an arm for his efforts.

UNESCO Makes Teide a protected World Heritage Site

After a long campaign to have Teide National Park inscribed, it is one of three new sites inscribed. The park is home to the world's third tallest volcano, ranging from the seafloor to the 3,781 m Mount Teide, Spain's highest peak. It is of global importance in providing diverse evidence of the geological processes that underpin the evolution of oceanic islands. The area is thus a major centre for international research with a long history of influence on geology and geomorphology, especially through the work of von Humboldt, von Buch and Lyell. This has made Mount Teide a significant site in the history of volcanology.

Others new sites are the primeval beech forests of the Carpathians, Slovakia and Ukraine, the ecosystem and relic cultural landscape of Lopé-Okanda, Gabon and Europe's largest glacier at Jungfrau-Aletsch-Bietschhorn, Switzerland.

Scorching Summer ahead

The weathermen predict that Summer 2007 is going to be a hot one, so remember to bring your suntan lotion. Meteorologists warn that the mercury will be rising and we may even break a record or two!

Trams between La Laguna and Santa Cruz

If you are spending a day up in the capital, Santa Cruz, or sightseeing in the historical La Laguna, then the new tram will be a boon because parking in the centre is always a challenge.

Climate refugees of the feathered kind

Ornithologists on the islands have reported that some thirty bird species from Africa have been sighted, all hitherto unrecorded on the islands. Scientists report that they may be fleeing the increasing aridity of the continent, a sign of global warming.

British Athletes train in Tenerife

Athens Olympic Gold winner Jason Gardener and Silver medallist Craig Pickering are among a number of British athletes taking advantage of the weather and excellent facilities in the lead up to the Beijing Olympics.

Charitable Walk

Reach deep into your pocket for Tenerife’s children’s charitable fundraiser, Debbie Bliss. This intrepid adventurer is walking the Great Wall of China and is looking for sponsorship. Charities she supports are the Tenerife orphanage, Martha II as well as the cerebral palsy unit here and Great Ormond Street Hospital. You can help the cause online, just click on this link:

http://www.justgiving.com/debbiebliss