The TNT interview: Baobab Resort El Duque
Wednesday, December 5th, 2007TNT 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.
