5 Reasons Why its the best time to Buy Tenerife Property
5 Reasons Why its the Best Time to Buy Tenerife Property
A combination of factors will ensure that demand for property in Tenerife accelerates as summer turns into autumn in Tenerife. Many bargains have already disappeared from the marketplace, and it looks like the summer will be the best time to grab those that remain because come the autumn buyers will be back in force.
1. The Euribor
Interest rate continues to plummet and is likely to continue to do so. Lower interest rates mean that mortgages are more affordable, attracting increased numbers of buyers.
2. The Banks
The central bank in Spain has relaxed rules for lenders, helping banks to avoid losses and strengthen their capital ratios. At the same time the government, is setting up a bank restructuring fund which it says will provide up to €90bn further funds for the banks. This combination of measures will add the grease to the wheels of mortgage lending and borrowing will become easier as we move into the autumn.
3. The Stats
Official figures, Tinsa (Spain’s largest valuation company) and independent pundits are in a general agreement that the market has already bottomed out. Evidence from Tenerife’s market shows that bargains are no longer the rule but are becoming the exception.
4. The Brits
The Brits own thousands of properties in the south of Tenerife and we are the major influence on the local economy. History clearly shows a strong link between the British economy and the property demand in these tourist areas popular with second home buyers. House prices in the UK have turned the corner according to surveys by the largest lenders, and this will have a knock on effect, increasing demand for homes in the south of Tenerife. Increased confidence that the Pound will pass the 1.20 Euro barrier before year end will further fuel this demand.
5. The Season
As with many industries, there is a seasonal change in demand. Summer is traditionally the slowest time for property transactions, which seasonally pick up in September and accelerate as the year continues. Combined with the factors above, these seasonal fluctuations point to a resurgence of demand in the autumn.