I know Tenerife very well and whilst prices on websites and in shop windows havent fallen by much - allsorts f offers are being accepted.

The island economy is in a state of free fall, estate agents are going out of business all over the place - both English and Spanish companies.

I have family in the North of Tenerife who mainly serve the Spanish construction and aggregates market and they told me last week business was down 50% year on year - shocking.

I know a lawyer in Tenerife who has just taken on a hefty case load from one of the banks for repossessions - more than they can handle at the moment.

Could be some great bargains to be had but you would have to think about how long it would take to offload the properties again at a profit.

There is also the 10% in costs and taxes that you have to account for before you calculate your profits.

But, if you can put 30% down - mortgages are fairly straightforward for "clean" clients - more is achievable but can be difficult