Tenerife Real Estate Blog

TNT Interview from december 2007:

A second home in the most wanted area of Tenerife!! 

“Through the letting, an owner not only wants to obtain income to cover the fixed expenses, but also wants to obtain an extra benefit from his investment” 

TNT: - In what does the Baobab Resort differ from other complexes?

Filip: The difference is that in Baobab we offer all owners a professional rental management service for short and long term rentals. In other resorts this is impossible! Purely residential complexes have the problem that for short periods (less than 3 months), when the owner is not present, the property cannot be rented out legally. Also, there are no cleaning services nor maintenance services provided. This kind of property will obviously not get such a high benefit because of having your property empty during your absence. In the Baobab Resort a professional rental service company will take care of all rentals, and will offer a full maintenance and cleaning service to the owners as well.

The formula is based on 3 observations.

Firstly, there is a growing need for property which generates a turnover. Thanks to our sales experience, it is very clear to us that offering a turnover for a holiday home plays a decisive role at the moment of purchasing a property abroad. The owner not only wants to cover the fixed expenses, but also wants to obtain a benefit from his investment. Moreover most owners do not want to depend from an acquaintance or a local and unknown office, but they are looking for a professional treatment of their property.

Secondly, the problematic Spanish rental system is also a big issue. For families with children there are actually more than enough hotel rooms available, but a wide selection of holiday apartments where the entire family can stay together simply does not exist. Also, the offer of large holiday apartments will be lower from now on because of the strict controls over the illegal rentals in purely residential complexes.

And thirdly, the always younger generation of owners is now looking for a combination of holiday and benefits. It becomes frequent that often younger people decide to buy a second home. Not only to be able to enjoy the property to the fullest during their short holidays, but also to obtain a high benefit during their absence. 

These observations have helped us towards the realisation of the design of the Baobab resort. A professional rental company will take care for determined periods of time of the rental management. This way we can offer a beautiful apartment with a top situation and fabulous sea views, together with all the necessary services, offering the owners a wonderful benefit on their investment.

  TNT: -Which kind of benefits can an owner expect?

Filip: Thanks to the years of experience of Second Home Tenerife in this number one area of El Duque, the rental incomes are expected to be above the average. Taking in account the prices of the surrounding hotels, we are expecting an excellent turnover. The professional rental management team will be available 365 days a year. The owners will be paid pro rata according to the amount of days they want to rent out their property. The turnover of each property will obviously depend on the occupancy of the owner in his own apartment.

TNT: -What kind of capital gain can be expected when the property is put up for sale again?

Filip: We have very high expectations, especially for the (middle- and) long period, as by then the good reputation and results of Baobab will be more than known. We are certainly expecting a rise between 5 and 10% per year. We have obviously also taken great care in offering great payment facilities to maintain the formula payable. So, for a top of the range property with an excellent situation and an interesting price with very appealing payment facilities:

Prices start at 243.018 euros, there is a reservation fee of 10.000 euros, only 40% is to be paid with the start of the building works, and the remaining 60% is only payable upon completion, which is foreseen for end of 2010. Moreover, we can also set up the mortgage from before the real purchase of the property.

Baobab Resort offers something very different and no doubt will this concept be copied in the future.

In Jardines del Palm-Mar the building works are also going very well, so we took a picture to show you how quick they are working here. Jardines del Palm-mar is a luxury complex offering apartments with 1, 2, 3 bedrooms, luxury interiors and good views.

Find out all about Jardines del Palm-Mar on its site on: www.jardinesdelpalm-mar.com! Or contact us, for any extra information, details, plans or inside divisions, etc… 

NIE Number. (Numero de Identificación de Extranjeros) and NIF, CIF numbers.

What this number is. It’s a number the Spanish authorities issue to uniquely identify foreigners. It is roughly equivalent to the DNI number each Spanish subject is given for national identification purposes.

Why it is needed. Absolutely anything that will require payments to the Hacienda (Spanish Tax Authorities) or similar identification for Authoritative purposes, will require you to have obtained this number.

How long to get it. Following application, you will normally wait for 3 days till a week, it seldom takes longer.

What it looks like. An example of a number would be X-0902015-R and this is the usual format of the number. It is received in the form of an officially stamped, white paper, A4 size document, bearing your name, date of birth and of course your NIE number. It always starts with an X, and ends with another letter. There are between 6 and 8 digits in between the X and end-letter to make the NIE number complete.

If it gets lost. Once received, you should make several good photocopies and store the original safely. If lost, it is not simply re-issued, you will need to repeat the application procedure, though you should normally obtain the same number again.

How it is used. When asked for your NIE number, in most cases, it will be required by means of

(i) Showing the original certificate, and

(ii) Providing a photocopy of the original. This usually happens when an application of some sort is being made. Once the copy has been compared to the original, the copy is accepted and you will be handed back your original. Don’t ever hand over your original to anyone, as it is the only valid original you have.

Typical things for which this number is a prerequisite -

• Working as an employee or self employed.
• Buying a Car
• Telephone Account
• Electricity Account
• Bank Account
• Buying a Property

Documents normally required for your NIE Application

• Passport Original + 1 copy (Original returned, copy must be readable and picture viewable)
• The official NIE Solicitud (application form, fully completed and signed)
• A form with which you can pay a small fee, which you have to present upon applying for your NIE number.

You can obtain all the necessary forms and do this yourself, as it is not too difficult, but as an office client you can use our services, we can assist you with this.

NIF, CIF Numbers

These are Fiscal and Commercial numbers respectively. You can take your NIE certificate to Hacienda and get a creditsized card bearing your NIF number, this of course will simply be the same as your NIE number, but in a convenient size. The CIF number is normally issued to identify commercial entities such as SL and SA (Limited Liability and Public) companies.