Investment Property in Santa Cruz de Tenerife

Investment Real Estate in Santa Cruz de Tenerife

Santa Cruz de Tenerife property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Santa Cruz de Tenerife .

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Search Map of Santa Cruz de Tenerife Investment Real Estate

Santa Cruz de Tenerife, commonly abbreviated as Santa Cruz (, Spanish: [santa ˈkɾuθ]), is a major city, capital of the island of Tenerife, Province of Santa Cruz de Tenerife, and capital (jointly with Las Palmas) of the Canary Islands. Santa Cruz has a population of 206,593 (2013) within its administrative limits. The urban zone of Santa Cruz extends beyond the city limits with a population of 507,306 and 538,000 within urban area. It is the second largest city in the Canary Islands and the main city on the island of Tenerife, with nearly half of the island’s population living in or around it.

Santa Cruz is located in the northeast quadrant of Tenerife, 210 kilometres (130 mi) off the northwestern coast of Africa within the Atlantic Ocean. The distance to the nearest point of mainland Spain is 1,300 kilometres (810 mi). Between the 1833 territorial division of Spain and 1927, Santa Cruz de Tenerife was the sole capital of the Canary Islands, until 1927 when a decree ordered that the capital of the Canary Islands be shared, as it remains at present. The port is of great importance and is the communications hub between Europe, Africa and Americas, with cruise ships arriving from many nations. The city is the focus for domestic and inter-island communications in the Canary Islands.

The city is home to the Parliament of the Canary Islands, the Audience of Accounts of the Canary Islands, the Captaincy General of the Canary Islands, the Canarian Ministry of the Presidency (shared on a four-year cycle with Las Palmas), one half of the Ministries and Boards of the Canarian Government, (the other half being located in Gran Canaria), the Tenerife Provincial Courts and two courts of the Superior Court of Justice of the Canary Islands. There are several faculties of the La Laguna University in Santa Cruz, including the Fine Arts School and the Naval Sciences Faculty. Its harbour is one of Spain’s busiest. It is important for commercial and passenger traffic as well as for being a major stopover for cruisers en route from Europe to the Caribbean. The city also has one of the world’s largest carnivals. The Carnival of Santa Cruz de Tenerife now aspires to become a World Heritage Site, and is the second largest in the world.

The main landmarks of the city include the Auditorio de Tenerife (Auditorium of Tenerife), the Torres de Santa Cruz (Santa Cruz Towers), the Plaza de España (Spain Square) and the Iglesia de la Concepción (Church of the Immaculate Conception). Santa Cruz de Tenerife hosts the first headquarters of the Center UNESCO in the Canary Islands. In recent years the city of Santa Cruz de Tenerife has seen the construction of a significant number of modern structures and the city’s skyline is the sixth in height across the country, behind Madrid, Benidorm, Barcelona, Valencia and Bilbao.

In 2012, the British newspaper The Guardian included Santa Cruz de Tenerife in the list of the five best places in the world to live, next to the Cihangir district, in Istanbul; the district of Sankt Pauli, in Hamburg, the north coast of Maui, in Hawaii and Portland, in the state of Oregon (United States). The 82% of the municipal territory of Santa Cruz de Tenerife is considered a natural area, this is due in large part to the presence of the Anaga Rural Park. This fact makes Santa Cruz the third largest municipality in Spain with the highest percentage of natural territory, after Cuenca (87%) and Cáceres (83%). City has a status of global city (in Sufficiency category).

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The financial stability of Santa Cruz de Tenerife has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Santa Cruz de Tenerife

Renting out your Santa Cruz de Tenerife buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Santa Cruz de Tenerife are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Santa Cruz de Tenerife and be prepared to change your initial outlook.
Thoroughly research the Santa Cruz de Tenerife location with a special emphasis on fringe areas outside the main Santa Cruz de Tenerife metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Santa Cruz de Tenerife.
Ensure that your target investment property in Santa Cruz de Tenerife appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Santa Cruz de Tenerife properties yourself is an easy option, but are these savings justifiable when you run into Santa Cruz de Tenerife red tape? Physis Realty Santa Cruz de Tenerife office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Santa Cruz de Tenerife buy-to-rent sector.

With our expert guidance, investing in Santa Cruz de Tenerife provides the secure knowledge that your money is working harder than it would in a local Santa Cruz de Tenerife bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Santa Cruz de Tenerife, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Santa Cruz de Tenerife property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Santa Cruz de Tenerife

Flipping property in Santa Cruz de Tenerife

Flipping property is when we advise clients to buy a Santa Cruz de Tenerife property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Santa Cruz de Tenerife market has a time to react to the renovation.

The Flipping Strategy in Santa Cruz de Tenerife

Investment property flipping in Santa Cruz de Tenerife is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Santa Cruz de Tenerife real estate investments are sometimes referred to by professionals as ‘distressed’ Santa Cruz de Tenerife real estate.

What is distressed Santa Cruz de Tenerife property:

Santa Cruz de Tenerife property in need of renovation
Santa Cruz de Tenerife real estate with a change of purpose and use
Oversold Santa Cruz de Tenerife property
Bank repossessions in Santa Cruz de Tenerife

Put simply, long term investors in Santa Cruz de Tenerife purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Santa Cruz de Tenerife investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Santa Cruz de Tenerife property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Santa Cruz de Tenerife use a minimum profit value of 22% when looking at potential Santa Cruz de Tenerife projects. The reason for this is because there are lots that can go wrong in Santa Cruz de Tenerife property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Santa Cruz de Tenerife

For luxury property investors hoping to add a superb property in Santa Cruz de Tenerife to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Santa Cruz de Tenerife, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Santa Cruz de Tenerife should be entrusted to only the highest-quality agency.

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