AlvyLad

Hello all,

We(not a Royal,but family of 4(42M;39F;3F and 1 year old boy)) are definitely moving, (depending on the ground work) to Spain and more specifically to the South side of Tenerife (Adeje).

I've read loads and loads of similar threads about mainland Spain and being ever so uncertain as how we'll invest, depends when we will move and most importantly what we do about our own living arrangements.

"We"(royal)- (she) has made a list of 20 most varied properties for me to inspect, for my coming back visit at the end of a month in the areas "we" would like to settle inn.

I had offers on our house and long story in short, we expect to pay up mortgage and have 150kEuro equity released to buy either:

1- Holiday complex apartment, great short term return, but it wouldn't be suitable for family living long term.

2- small house to have it rented out (long term), before we'd move over for good, in prime area.

3- (most tempting idea) is to buy biggest available-affordable house, split it in to rental part apartment and our living quarters.(I am half decent builder, could do all of the work myself). Perfectly aware 40%+ unemployment, hence need at least some rental income to make ends meet in the long run.

"Super-laws"- Licensing for short term lettings in Tenerife, ... very much concerned weather letting agent wouldn't get us in to trouble-jeopardy by doing its bit, but not declaring licensing in the new owners name. New license is only possible after we have resided for 6 months, right?

There are conflicting reports in relation to the "non tourist"- long term lettings also, as how hard and or complicated to be landlord without being full resident (NIE etc) to have a valid contract, hence to have reliably paying tenants.

Considering all of the above, hoping for a good advice here, or, I would love somebody from local British Financial Advisers or even reputable Estate Agents first hand to advise us (me).
Could anybody recommend honest, reliable and knowledgeable in the South (or anywhere in Tenerife) professional person , to guide "us" and help with all of the financial and legal issues during this life changing (hopefully for the better) move?

Most grateful in advance,
Cheers!

cricketman

You are not going to be able to fund a family of four renting out a EUR150k property to holiday makers

I know someone who has a EUR2 million villa who does make enough to live on

If you only have EUR150k and little prospect of work then you are not going to be in a good situation

AlvyLad

Don't get me wrong- I am listening!
and I am not expecting to be unemployed, so is the TOTNTBOAT
Our planning is based on smaller properties and having "cash surplus" in advance(6mnths +), is what we are working on, also, carefully working out living expenses, prior to having child care in place etc.
She has media qualifications and admin experience, but has been out of work for almost 1.5 years, we don't expect as well paid job to land in same sector.
I am perfectly accepting, being an builder- have no chance at all to get well paid jobs, with rather poor Spanish, so bars, clubs, security (if my SIA license would be transferable), within small ex-pat community for the start is what we are aiming for and certainly- not retiring. Jobs- anything comes- we both a very versitile.
as for properties
Duplex apartment in Adeje in Adeje 139461885 | fotocasa

Apartment in Adeje in Costa Adeje, Tenerife 138781604 | fotocasa

Duplex apartment in Adeje in Avenue Rafael Puig SN 137141154 | fotocasa

Apartment in Adeje in Fañabe Pueblo 137589213 | fotocasa

Flat in Arona in Street Noruega 138515700 | fotocasa

Flat in Arona in Arona 139073558 | fotocasa

Flat in Arona in Arona - Los Cristianos 136578821 | fotocasa

Flat in Arona in Arona - Los Cristianos 136578689 | fotocasa

we expect to make living at 1500Eur a month, what complex rentals from one apartment are achievable. Long term rentals are only half-third of that.... so would mean needing to have 2 apartments rented and live in a third...
"Cunning plan"- is to have allowance of 6 first month's to find employment and more stable of an income and to have one sort of apartments rented out to have top-up to living expenses.
It is legalities and all of the small print, that conveyancing solicitors and financial adviser here working out for us great, that we need TBH.

It is "minor things" as buying fees of 11% +, that could make or break camels back in our situation and to be dipping in to reserve money or to end up with even greater unseen fee's/expenses of rental (IE non income) pit-falls we certainly don't want.

Hope I am making sense? thanks?

cricketman

Your numbers are very optimistic. Those links are to very unexciting properties. Who would want to holiday there?

I am not saying that your plan is impossible, very few things are impossible in this world, but they are very unlikely

An administrator and builder moving to where unemployment is 40% and speak no/little Spanish. Why would people hire you rather than the 5 million unemployed?

Moses2013

I don't get it. If you are waiting for equity from house sale, where will you be living in the meantime?


Point 1 doesn't make sense at all.

AlvyLad

Harsh, but fair...
Still, trying our best

cricketman

It is great to dream, but if you have kids you also need to be responsible

In Spain, there are millions of rubbish flats just like you posted, and millions of people out of work. So you need to ask what advantage you guys will have that will allow you to succeed

Once you have that answer then go for it

AlvyLad

For some while, we could stay here with relatives meaning we could stretch out to have 6 month money working for us in Tenefire... if not the legalities of short-term rentals...

I know and we all appreciate- it's not something high end we are aiming for, but its planning and working out for long term better future to ourselves and kids on a shoe string.... if 150kEur would be looked as.

Rosemary

Ask yourself the questions in an opposite manner and you may be able to answer some of your own questions. So could you buy a property in the UK in a suitable location that will give you the returns that you requite for 100K pounds. Make a list of the expenses that you would incur. If neither of you were working and there was no benefits coming into the house would the holiday rental income maintain you all as a family? These are the sort of things that sometimes help to clarify the situation. 150K euros is not a lot of money when you buy a property and then have to renovate even in a minor way.

We bought a town house in a small village far away from the normal "Brit" areas which we slowly renovated to suit ourselves and we were amazed at how much we ended up spending on it. Nothing high end, purely to make it a comfortable home. Licences cost a reasonable amount depending on the cost of the work being undertaken. Electrics have to be signed off by a qualified person. It can feel never ending.

You will not like the negative responses that experienced members may enlighten you with but we as a group are inclined to be as honest as we can be based on our own experiences or what we have observed others going through.

Rosemary

Moses2013

While is all sounds good, I doubt you will make much profit in 6 months and then you end up with a property that is not suitable for a family and very hard to sell. You have to look at taxes, community fees, legal costs and you don't know how people will maintain your property.

AlvyLad

Thank you!
I perhaps should have been clearer as why and how we've decided to move.
She, with the boy, me- honestly in last 5 years jobs thinning out and prices falling, big firms are taking over already stagnant construction industry market... its not rosy prospects here anyway and for the kids this environment is not what would wish for them.
Apart from last year, we had at least 2-3 breaks in Tenerife every year, not just for the climate or nightlife- we are past that, its the atmosphere of less earning people being way happier, openness, way friendlier social life than current rat race- money slave atmosphere here lost any appeal for us.
As for the work, I am aware of the costs and building materials and other usual "surprises", hence I am coming to find something that would be best value at the end of it. What is great 90% will be done by myself and yes, not great houses what's on offer, we are not expecting no miracles either.
Good planning, low expectations for the beginning, that is appreciated, (hopefully) will compensate the move in the long run.

Coming back as in to nature of investment as said earlier (1-) extremely attractive due to great returns ONLY, but plan (3-) is way more realistic way of going about it, however, as always- everything is in small print and details that will make everything successful move or a disaster, that we are trying to avoid not for us, but for kids sakes very much.

Thank you again for your honest suggestions, I am taking every word on-board and working towards our goal being careful in research and planing ahead.

Moses2013

And what about health care, pensions, education for your kids. Most people go on holiday and come back relaxed because it's called a holiday. You say the atmosphere of less earning people being way happier, openness, way friendlier social life than current rat race-




You can also go to smaller villages across the globe and find happy people, but while those people might have less, they usually still have an income (pension etc.). You are far too young to retire and putting your eggs in one basket is very dangerous, especially with kids.

AlvyLad

We (royal)- she works on those aspects and it is not a dire situation, past full residency permit in Tenrife.

Whilst we allowed first 6 months of job searches, before getting on to the same work-home routine, but instead of evening in front of TV, we'd rather throw pebbles on the beach or have sangria with way friendlier neigbours

Don't get me wrong- we understand difference on being on holiday and living, but that is the different part, that made our minds to move- living better-happier everyday life, be it it with lesser income, but better overal.

Moses2013

No offence, but you really need to be realistic and you don't have to be poor to throw pebbles on the beach. I hope you are aware that people in Spain actually work longer hours and you already mentioned that your Spanish is poor, so even if Tenerife might seem cheap, how will you even afford the basics like electricity, water, food, home insurance etc. especially if your rental plan doesn't work out?

cricketman

There is a myth that Spanish people are happier than British people. They are not. They have higher rates of depression and drug addiction, perhaps because there are so few opportunities in Spain

Spanish people seem happier on the surface because they are more sociable and expressive than the British, but it is quite a superficial thing

Anyway, living on an island on a small budget should not be appealing. You will not be able to rent a bog standard flat out for much money at all, and I can tell you that if you manage to get a day's work on a building site for 50 euros cash in hand, you will be wishing you were a "slave" again