Published on 31 October 2006 at 10:22 am
Filed under: Europe:- Portugal Property Guides » Portugal and Profiting from Investment Property
The majority of Portugal does not have a fast moving property market and anyone contemplating profiting from investment property in Portugal needs to concentrate on earning as high an income as possible from their assets and holding them for at least five years to see any form of decent return on capital outlay.
A way to increase the investment returns is to use finance to buy, leverage investment capital at low interest rates and invest in property that will return the strongest yields possibly in a market that has strong year round tourism traffic…
International lenders such as Barclays Bank offer finance and mortgages to buy property in Portugal and because they have a local presence in the market they are well placed to give an investor feedback about his/her particular plans for profiting from investment property in Portugal as well - click here to contact Barclays to find out more about how they can assist you invest in property in Portugal, complete a short form and they’ll call you back.
Some of the best areas to target are of course the main tourism areas along the coast in Portugal. The most talked about and therefore well known region is the Algarve and for those wanting strong year round rental potential the Algarve is one of the better regions. It has strong spring and summer time demand because of having fantastic weather and superb beaches, but because of the golf courses that the Algarve has in abundance there is actually a steady flow of autumn and winter demand from hardened golfing types!
By targeting this market in particular an investor can ensure he has year round income – an alternative is to make an investment into an accessible and attractive property with good access to local social facilities which can be let to the summer holiday market and then promoted to the retired snow birds from the UK and Northern European nations who annually spend the entire winter in locations such as Spain and Portugal to enjoy a far more temperate winter period.
The commercial market place in Portugal offers an overseas investor some opportunities. Again it is also well focused on the tourism market with hotels and tourist facilities and amenities such as bars and restaurants, shops and night clubs offering smaller investors a way in to an annual rental income…and of course there are the golf courses that Portugal is famous for and which are high income generating businesses year round offering larger and corporate investors a new angle to explore.
In Portugal’s cities there are various angles to look at. A fair amount of investment is being made in the likes of Porto and Lisbon to regenerate and revitalize the cities and preserve their character and highlight their heritage – this gives investors looking to renovate property a chance to buy apartments in older areas of the city that are coming up in terms of attraction and infrastructure and do them up to modern standards whilst retaining the unique character of the property and then reselling or renting to the local market.
In certain cities in Portugal there is a small tourism demand…there is also a student demand and in the main business centers there is a requirement for decent accommodation to let by both local professional workers and expatriate staff.
Therefore Portugal offers overseas investors a variety of options to profit from property but due diligence must be made into the realistic potential for rental yield and capital gains before an investment commitment is made.
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