Would you like to know the appreciation potential of a property in Sotavento and the return you can expect?
When you decide to invest in a second home, apart from taking into account the many advantages of South Tenerife, the best place to live – beside the island’s most unique beach, with private communal areas with swimming pools and garden areas, etc. – you should also consider other factors, such as the appreciation potential of the property and the return you can expect if you were to rent it out.
We are going to use the static return method to calculate the ROI; this method does not take any future changes in the value of the property into account, but we are confident that its value will increase, given the huge potential of the area and the fact that current sale prices for our properties are very competitive.
The estimates below are based on the current rental market situation in Sotavento housing estate; however, the Viqueira Group cannot guarantee that this data will not change in the future.
Data in euros. 2-bedroom apartment, standard sale price: €140,000
|INVESTMENT DATA||NET INCOME DATA (ANNUAL)|
|Apartment price: €140,000||Income: €7,200
Monthly rental income 600€
|Purchase expenses: €12,800|
More information available from
Costs associated with buying a new house
in the Canary Islands
- Taxes/Property tax: €250
- Service charges: €750
- Insurance: €150
- Maintenance, reinvestment, etc. : €500
|Furniture and appliances: €10,000||Return: €5,550|
|Total amount invested: €162,800||-|
|ANNUAL RETURN: €5,550/€162,800 = 3.40%|