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Buying or renting, there are a wide choice of Tenerife villas available.

Close your eyes and just picture it, the tenerife villas, the pools, the sun slowly setting over La Gomera, the gentle glug of wine pouring into your glass... sounds perfect doesn't it!

Many people have made this dream a reality by purchasing their own perfect holiday home in tenerife or moving permanently to the island to live as an ex-pat.

In 2007 it was estimated that over 20,000 Brits purchased holiday homes in Spain alone, a great number of those holiday homes are in tenerife.

However, recent uncertainty in the markets has lead to doubt over the potential of achieving the growth in value seen over the past 10 years, but like anything else there is always money to be made for the shrewd investor.

You've no doubt seen the programmes on T.V. about property nightmares abroad, but often that's sensationalism, if you do a little research and be prudent you can still get bargain tenerife villas.

An annual survey of European housing market says Spain has been the strongest market of them all, rising by 120% since 1998.

But be warned: over-supply in many tourist areas means prices are weakening and the huge price hikes of the past five years have gone, probably for good.

Prices will also level out because infrastructure in most areas is good and Spain has made the move to low Euro-zone mortgage rates. 'Undiscovered' areas are few and far between.

So, what should you be paying? Typical property prices vary significantly from region to region. Premium prices are charged for new properties.

But a rough guide for quality second-hand homes in good locations would be: from £145,000; two-bedroom villa, £170,000; three-bedroom villa, £240,000; five-bedroom villa, £380,000.

It is estimated that over the long-term, property values may achieve in the region of 10-15% growth. However, remember that you can still achieve year round income from your villa rental if you're using it as a holiday home.

Once you find a tenerife villa you like and agree a price - it is not unusual for private sellers to settle for 85% of the asking price.

The buyer's conveyancing solicitor must establish that the property has clear ownership titles and is free of debt (any unresolved debt at the time of purchase falls to the new owner).

Both parties then sign a contract containing local government search details, the purchase price and the date of completion, if it is a new home. A deposit of 10 to 15% is paid by the buyer.

If the buyer pulls out, they may lose their deposit; if the seller withdraws, they must reimburse twice the deposit.

On completion day, the buyer and seller sign the title deeds, or Escritura de Compraventa, and the remaining 85 to 90% of the purchase price must be paid.

The moral of the story however is, if you're looking at tenerife holiday villas, or any property for that matter, do not jump in with two feet, take your time.

Just because it's lovely day and you're in a good mood DO NOT make decisions there and then, take the details and go back and think about it long and hard.

Only make that decision once you're 100% happy in own mind, and if necessary talk it over with someone you trust.

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