Homes, commercials and plots for sale on Lanzarote and Fuerteventura.

The Canary Islands are a very attractive place to buy property. The weather is great and the lifestyle is better than most places in Europe! For those wanting to invert in real estate, however, the road can be troublesome at Best.

To help you along a bit we provide you with some advice for buying property in Canary Islands.

1. Choosing the right location

You know the famous saying about the three most important things when it comes to buying a property – location, location and location! Yes, we all know it but it’s extraordinary how many foreigners buying in the canary Islands miss this fundamental point.

Carried away on a wave of sun, sangria and a pushy sales pitch from a local estate agent, too many people rush in to buying their “dream home” only to find it’s in a completely inappropriate location for their needs.

However much you want the property, think hard about whether there are any drawbacks. Will you be able to have a phone line installed (don’t take the agent’s word for it!). Does it have street water? Is it near to shops, bars, restaurants and other facilities you may regard as essential? Does it have letting potential? What’s the area like out of season?

That may sound excessive but when you’re buying in a foreign country, it’s much easier to come a cropper. Remember: only fools rush in!

Buying as an investment

If you’re buying a property on the Canary Islands as an investment, rather than as a permanent home, you’ll probably be looking for a villa or apartment with good letting potential. After all, you may as well enjoy the income from it while you sit back and watch your capital grow.

I know many owners who make a very decent living solely from letting their holiday homes. Location, as highlighted in the last tip, is everything especially when it comes to holiday letting. A private or communal swimming pool is essential for successful letting as is easy access to the beach, shops and nightlife. Your holiday let will also need to be within easy reach of an international airport with regular charter flights.

Must I use an agent to handle my purchase?

NO! By-pass the middleman if you’ve got the time and inclination to seek out your dream home by your own efforts. But whatever you do, don’t by-pass a lawyer once you’ve found it.

As long as you take good legal advice you don’t actually need an agent. Of course there are many good and helpful agents around. The obvious advantages of using an agent is that they have a ready stock of properties available and will escort you to view them, often supplying much helpful advice and information along the way. The disadvantage is that average commissions are about 5 to 6% of the purchase price.

If you do decide to use an agent, hunt around for a agency with a good reputation and low commissions.

This entry was posted on Friday, February 13th, 2009 at 18:08 and is filed under Selling & Buying. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.