Property for sale Gran Canaria

Tag: investing in the canary islands

August 14, 2024 Daniele Piccoli No Comments Legislation/Laws, Real Estate Agent / Property Finder in Gran Canaria, Real Estate Investments

Buying House in the Canary Islands

The Best Choice for Buying Home in the Canary Islands: Rely on a Real Estate Agent Enrolled in the RAIC

Buying a home in the Canary Islands can be an exciting and beneficial opportunity, but it is critical to make an informed choice about the professionals who will guide you through the process. Contacting a real estate agent registered in the RAIC (Canary Islands Register of Real Estate Agents) is the safest and most beneficial decision. This official registry, maintained by the Canary Islands government, certifies the competence and reliability of real estate agents operating in the islands. However, it is essential to beware of industry “gurus” who often show up on social media with misleading offers.

What is RAIC?

The RAIC is an official registry run by the Canary Islands government that certifies real estate agents authorized to operate in the archipelago. Being registered with the RAIC means that the agent complies with all legal and professional regulations, thus ensuring a high level of competence and reliability.

Benefits of Choosing a RAIC Enrolled Agent.

-Guarantee of Competence:

Agents registered in the RAIC have demonstrated that they have the qualifications and skills to handle real estate transactions professionally.

-Legal Protection:

Registration in the RAIC ensures that the agent follows strict ethical and regulatory standards, providing greater legal protection and reducing the risk of malpractice.

-Reliability:

Agents registered with RAIC have access to official resources and support, increasing their ability to handle transactions with transparency and professionalism.

Beware of False Professionals and Social Media "Gurus"

In the Canary Islands real estate market, it is critical to pay attention to real estate “gurus” who often use social media to attract investors’ attention. Here are some warning signs:

Fuortive Videos:

Many of these gurus post catchy videos on social media with the apparent intent of providing informational value. However, these videos often serve primarily to pre-attract investors by offering superficial and general content. The videos may look impressive, but they lack concrete and verifiable details.

Absence of Concrete Testimonies:

Gurus often do not present real testimonials from satisfied clients or verifiable case studies. Their claims may appear enticing, but without tangible evidence of real successes or customer feedback, they are not reliable.

Confusing Patterns and Statistics:

To impress and confuse investors, these gurus show complicated diagrams, calculations, and real estate statistics that may seem technically advanced but are poorly understood by those without a solid background in the field. These tools can be used to give an air of expertise without offering truly useful information.

Sale of Expensive Packages:

The real goal of many of these gurus is to sell consulting packages at outrageous prices. These packages often offer no real added value and are full of “hot air.” Investors can end up spending a lot without getting useful or practical advice.

Acquiring Information Without Cost

It is important to know that you do not need to purchase expensive consulting packages to obtain information about the Canary Islands real estate market. Real estate agents registered with the RAIC offer free consultations and can provide you with all the information you need without requiring upfront payments. Turning to certified professionals allows you to get solid data and advice without the risk of unwarranted fees.

How to Verify Registration in the RAIC

Online Verification:

Check the official website of the RAIC or contact the relevant agency directly to confirm the real estate agent’s registration.

Request Documentation:

Ask the agent to provide you with proof of his or her registration and professional certifications.

My Commitment As a Registered Professional in the RAIC.

I would like to emphasize that I am a real estate agent duly registered in the RAIC. This means that I comply with all regulations and professional standards required to operate competently and reliably in the Canary Islands real estate market. My goal is to provide a transparent and high-quality service, helping you make informed and confident decisions without the need to resort to expensive consulting packages or tempting but misleading offers from social media “gurus.”

Conclusion

Investing in real estate in the Canary Islands can be a great opportunity, but it is essential to make informed choices about real estate professionals. Turning to an RAIC-registered real estate agent offers expertise, reliability and legal protection. Be wary of expensive consulting packages and social media “gurus” who offer only talk and confusing schemes without hard evidence. Always check the credentials of professionals and choose carefully to ensure a safe and satisfying buying experience. If you have any questions or need assistance, I am here to offer professional support and advice.

Take advantage of Free Real Estate Consultation

Whether you are a first-time buyer, an experienced seller or an investor looking for new opportunities, we are here to guide you through every step of the real estate process. Take advantage of our experience and market knowledge to make informed decisions and get the best results.

Spanish Tel. +34 635632009 Italian Tel. +39 3518711203

info@propertyforsalegrancanaria.com

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August 10, 2024 Daniele Piccoli No Comments Short Term Rentals/Tourist Rentals

Disadvantages of Long-Term Renting in Gran Canaria: Why Short-Term Renting is More Profitable and Advantageous: The Reasons You Need to Know

With the new law on the horizon, politicians and a few social real estate gurus want us to believe that renting a property in Gran Canaria, long term is the same in terms of income and peace of mind as renting it out to tourists…..

Renting a property for the long term has several disadvantages that can negatively affect the owner. Here is a detailed overview of these disadvantages that leads me to confirm again and again how tourist renting on the island is a great source of income for landlords and therefore always opposed by the powerful and gurus with vested interests:
affitto lungo termine contro affitto breve in canarie

Lower Yields

1. Lower Rental Rates:

- Comparison with Short Rentals:

Long-term rentals generally involve lower monthly rents than short-term rentals, especially in tourist areas such as the Canary Islands, where short-term rentals can capitalize on high seasonal demand.

- Annual Yield:

Although short rentals may have lulls, during peak seasons they can generate revenues that far exceed those of a long-term stable rental.

2. Limited Increases in Fees:

- Laws and Regulations:

In many places, rent increases are regulated by law, limiting the landlord’s ability to adjust the rent to the growing market.

Less Flexibility

1. Limited Personal Use:

- Availability of the Property:

Once rented, the owner loses the ability to use the property for personal purposes or to host friends and family.

- Sales Planning:

If the owner decides to sell the property, it may be difficult to do so without waiting for the lease to expire.

2. Contractual Binding:

- Contract Duration:

Long-term leases often have minimum durations, making it difficult for the owner to regain possession of the property before the lease expires.

- Restrictive Clauses:

Many contracts include clauses that protect tenants and limit the landlord’s ability to terminate the contract early.

Risk of Morosity

1. Morose Tenants:

- Payment Delays:

There is always a risk that tenants will not pay rent on time, or stop paying rent altogether.

- Legal Costs:

Recovery of unpaid fees may require expensive and time-consuming legal action.

2. Difficult Recovery:

- Insufficient Guarantees:

Even with deposits and guarantees, fully recovering the amounts owed can be difficult if the tenant is in financial difficulty.

- Eviction Process:

Evicting a delinquent tenant can be a long and complicated process, subject to laws and regulations that protect tenants.

Damage to the Property

1. Wear and Damage:

- Routine Maintenance:

Tenants may not take as good care of the property as a landlord would, leading to more wear and tear.

- Costly Repairs:

Damage caused by tenants can require significant, expensive, and sometimes uninsured repairs.

2. Lack of Adequate Maintenance:

- Neglected Small Repairs:

Tenants may ignore small repairs or problems, which could worsen over time if not promptly resolved

- Owner's responsibility:

Although contracts may specify tenant responsibilities, the landlord may still need to take action to keep the property in good condition.

Legislation and Regulation

1. Tenant Protection:

- Tenants' Rights:

Laws often offer strong protection to tenants by limiting the actions landlords can take against them, including for nonpayment or damages.

- Obligations of the Owner:

Landlords are required to meet housing standards and may have to invest in improvements or repairs required by law.

2. Legal Disputes:

- Disputes with Tenants:

Legal disputes can easily arise and resolving them can take time, money and resources.

Tenant Management

1. Choice of Tenants:

- Careful Selection:

Finding reliable tenants can be a long and challenging process. An error in selection can lead to significant problems.

- References and Verifications:

Conducting thorough reference and credit checks of tenants is essential, but requires time and resources.

2. Coexistence Issues:

- Conflicts with Neighbors:

Tenants may have problems with neighbors, creating tensions that may require landlord intervention.

- Respect for the Rules:

Tenants may not abide by the rules of the condominium or owners’ association, causing further problems.

Sales Difficulties

1. Real Estate Market:

- Reduced Attractiveness:

A long-term leased property may be less attractive to potential buyers than a vacant property, reducing the number of potential buyers.

- Sale Price:

The presence of tenants can negatively affect the sale price of the property, as new buyers may perceive risks or inconveniences.

2. Contractual Constraints:

- Ongoing Contracts:

Buyers may be discouraged from purchasing a property with existing tenants, especially if contracts include long terms or inflexible conditions.

- Takeover of Contracts:

Managing the takeover of leases can be complex and require additional time and resources.

Conclusion

Renting a long-term property in the Canary Islands can involve a number of disadvantages and issues that must be carefully considered.

It is important to evaluate these aspects in relation to one’s own needs, management and financial capabilities before making a decision, however, the advantage of renting to tourists who pay in advance and leave at a certain date remains unimpeachable, so I suggest not to be beguiled by promises of secure returns and zero worries because a long-term rental is far from it!

So if you really want to invest in real estate for income, you should not buy in the residential areas like Las Palmas or center island but you should invest in the South, in the tourist area where, in spite of what they want us to believe, a property in the right area and well equipped will only generate high and secure income from short or medium term rent.

August 7, 2024 Daniele Piccoli No Comments Real Estate Investments

Investing in Las Palmas or Southern Gran Canaria?

Investing in Las Palmas: the risks for real estate investors. Find out why putting real estate into income in the city may not be cost-effective.

Let me preface by saying I have nothing against Las Palmas…in fact I love it! I have all my friends who live in the North, I spend almost all my weekends there, I like walking in Las Canteras, shopping at Corte Inglès, biking on Avenida Maritima, getting lost in the little alleys of Vegueta and Triana but…my money and my investors’ money would not spend it on real estate to put into income!

Buying in Las Palmas means investing in a market that is far from rich! in what sense? in the sense that in Las Palmas tourist properties are rented mainly to young people, to people who want to get to know the city a little bit for a few weeks or months perhaps taking a Spanish course on the fly, or for those looking for a fortune …credit where credit is due!

But to make money from short- or medium-term rentals YOU NEED TO BUY IN THE SOUTH!

Have you ever seen dozens of couples over from northern Europe spending 3-4 weeks or even months in Las Palmas in winter? I really few…if any…and it is the northerners who have the highest number of winter vacation days! It is Northerners who receive government subsidies to go on vacation! It is the Nordics who are the richest retirees in Europe! (Germans, Norwegians, Swedes, Finns, Icelanders, Irish, English, etc.).

Try coming to Puerto Rico or Maspalomas in November …..i Pubs and Karaoke blow up!!! Beaches are sold out and at night for a cab you have to wait and wait …. so?

Have you ever strolled in November in Las Canteras after 10 pm? there are you and the sea…wonderful let alone but have you ever seen hordes of tourists singing , dancing, drinking late into the night? Me in 10 years never!!!   A few at the famous and only pub in the area … but very few and all mainly young …

Short-term rentals are tourist rentals, and whether you love it or hate it, the TOURIST ZONE OF GRAN CANARIA IS THE SOUTH! There is little to do…

Winter bookings have already exploded and many apartments that I exclusively manage are sold out with mind-boggling prices per night….and the names of the tourists are all unintelligible !!!
I have all the bookings even from past years that prove how worthwhile and profitable an investment is in the South in the short- or medium-term rental business..and no law and no Guru will ever be able to stop winter tourism in the heat…and if we really want to put it bluntly…not even summer tourism!

In fact, this year as never before even in summer the South of the island appeals to tourists, certainly influenced by the unfortunately difficult situation in the Middle East area…but also because in Las Palmas there is panza de burro (donkey belly)!!! clouds, clouds and clouds almost every day…

SO LISTEN TO THE NUMBERS and not to the Gurus with videos on Tik Tok, Facebook, YouTube, etc., who try to convince you with strange theories about the advantages of buying a property to put income with tourism in northern Gran Canaria!

But then sorry, and I will conclude, you if you were to go on vacation to the sea, would you choose a studio apartment in a building in the middle of traffic and smog with a cool, cloudy and windy climate in the winter, or a bungalow with a garden, an apartment with a terrace overlooking the sea in quiet San Agustin or up in Puerto Rico with one of the best microclimates in the world and year-round sunshine?

Look a bit on Idealista…how many tourist apartments for sale are there in Las Palmas with photos of towels on the beds and bottles of sparkling wine on the snack top…and how many are there in the South?? very few! and ask yourself two questions no! I don’t sell if I know it makes me! (in a few cases you sell for other reasons for sure, even I have cases of apartments for sale in the south for personal reasons even serious ones of the owners..but these are exceptions)

You be the judge … I meanwhile enjoy reading and sneer to myself …

If you are interested in Investing in Gran Canaria please contact me.

Daniele Piccoli +34 635 632 009 +39 351 871 1203

June 1, 2023 Daniele Piccoli No Comments Real Estate Investments

DOES INVESTING IN THE CANARY ISLANDS PAY OFF?

WHY DO MANY REAL ESTATE INVESTORS PREFER TO INVEST IN THE CANARY ISLANDS THAN IN THE REST OF THE WORLD?

There are several reasons why a real estate investor might consider investing in Gran Canaria or the Canary Islands in general. Here are some of the main reasons:

  1. Tourism: The Canary Islands are one of the most popular tourist destinations in Europe. Every year, millions of tourists visit these islands to enjoy the subtropical climate, beaches, outdoor activities and relaxed atmosphere. This creates a strong demand for tourist accommodation, such as apartments, vacation homes and hotels, offering stable investment opportunities in tourism real estate.

  2. Favorable climate: The Canary Islands enjoy an exceptionally pleasant climate year-round, with average temperatures ranging between 20°C and 30°C. This climate attracts many visitors during the winter, seeking warm and sunny weather. The attractiveness of a pleasant climate contributes to the stability and demand for tourist accommodation, encouraging real estate investment.

  3. Taxes and tax incentives: The Canary Islands offer attractive tax advantages for real estate investors. For example, there is preferential taxation on Personal Income Tax (IRPF) and Corporate Income Tax (IS), as well as reduced Value Added Tax (VAT) for tourism activities. These tax incentives can make real estate investments more profitable and attractive.

  4. Political and economic stability: Spain, of which the Canary Islands are a part, is a democratic country with a stable economy. This provides a favorable environment for real estate investment, ensuring a stable legal framework and clear rules for foreign investors.

  5. Real estate growth: The real estate sector in the Canary Islands, and particularly in Gran Canaria, is growing steadily. There are many opportunities for real estate development, both for new construction and renovations. In addition, there are several expanding tourist and residential areas that offer attractive investment opportunities.

  6. Quality of Life: The Canary Islands offer a high quality of life, with a unique combination of natural landscapes, beaches, outdoor activities, and modern infrastructure. People looking for a home to live there full-time or to spend their vacations can benefit from a pleasant environment and a wide range of services and recreational activities.

Of course, as with any real estate investment, it is important to conduct a careful market analysis and assess the risks and potential returns before making a decision.

Picture of Daniele Piccoli

Daniele Piccoli

May 15, 2023 Daniele Piccoli No Comments Real Estate Investments

INVESTING IN THE CANARY ISLANDS

In recent years, the Canary Islands have become a focus for thousands of Italian real estate investors looking for profitable opportunities. But why is investing in the Canary Islands so worthwhile? First of all, their proximity to Italy is a strong point, allowing investors to reach these islands in only a 4-hour flight. This proximity offers unique peace of mind to investors, as they can easily address any problems or needs that require their presence. Just think if you had purchased a property in the Caribbean and suddenly your presence was urgently required! Investing in the Canary Islands eliminates such worries by offering a convenient solution for real estate investment.

A crucial aspect to consider is safety: the islands offer an incredibly low crime rate, one of the lowest globally. This characteristic creates an atmosphere of serenity and tranquility that comes close to few other European destinations, providing residents and tourists with an unparalleled sense of security.

Last but not least, the climate of the Canary Islands is a key factor. Enjoying year-round sunshine, with light rainfall mainly concentrated in the northern areas and almost absent in the southern tourist areas, these islands offer ideal climatic conditions. Temperatures rarely fall below 18 degrees Celsius during the 12 months, reaching highs of 40 degrees Celsius during the summer. Thanks to this wonderful and pleasant climate, along with long golden beaches, fascinating mountain scenery, safety and affordable prices, the Canary Islands have become a destination of choice for thousands of tourists, especially from northern Europe. And where there is an influx of tourists, there is also a vibrant short-rental business. Therefore, real estate investors choose to purchase one or more properties in the Canaries to devote to tourist rentals.

“Renting an apartment in the Canary Islands to tourists offers numerous financial advantages. This form of investment ensures a continuous and profitable flow, protecting your funds from banking instabilities and financial market fluctuations. In addition, it is an opportunity to have an ideal vacation home or guesthouse for you and your family.

Investing in the short-term rental sector has many advantages over long-term rentals, especially in terms of payment security and control of the property. This choice gives you greater financial peace of mind and guaranteed returns over time.”

“Payment security is a key issue in apartments dedicated to short-term rentals for business purposes. In fact, only guests who make prepayment for their stay can enter such apartments and receive keys. This system provides owners with protection from possible non-payment, an unfortunately frequent situation in the long-term rental market that often results in legal proceedings to evict defaulting tenants. Tourist rental, on the other hand, offers a solution to all these problems: the contract is based on well-defined check-in and check-out dates and requires payment in advance.”

“In terms of control of the property, short-term rental does not imply a loss of control for the owner. In fact, the owner can continue to use the property and, when available, can also make improvements, monitor any issues, and maintain complete ownership without giving it up, unlike with long-term rentals. If you want to invest in a safe and risk-free business, short rentals in the Canary Islands are a great choice!”

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