Buying Property in Algarve as Investment / Holiday Home

Last activity 22 August 2022 by SunshineSara

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Guest123945Guest05 February 2022 14:11:48

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Dear All,

I am considering buying a property in Algarve region (Lagos / Faro / Allbufeira) as an Investment: I intend to rent it out during the season (which I assume is at least about 6 Months in the region Apr-Oct) and use it for personal stay (1 Month at time) during off season.

Regarding I have couple of questions:
1. Is property investment in Algarve still worth while (buy in 2022-23, Hold 10 yrs, Sell 2033)
2. With so much of interest (even Warren Buffet / Berkshire Hathaway real estate) is invested in Portugal, are the current prices already too high?
3. It should earn enough to pay the loan premium, I estimate 800-900€ @Month
4. Is total capital of 400k-460k€ (inclusive loan) realistic, what is the size of the property & which are the suitable locations?
5. What is the best option for renting out? i.e., to lease it to a Property Rental agency or make self arrangements like having a local person to look after it.

Any help / pointers / advise will be appriciated.

Btw I live and work in Germany & Portugal is my favourite travel destination.

MfG / Best Regards,
Leo

drroxanakernsNew member22 August 2022 17:55:42

Be aware you will be taken advantage of. The prices are higher and services worse for non nationals. New apartment buildings not good quality and very expensive , more than 500k for a sea view beach front apartment. Some builders will try to scam you as Rua do Oceano no 3, Albufeira.

victorcabrita71Active member22 August 2022 18:21:38

@drroxanakerns

you had a bad experience. nevertheless, the quality of the buildings remains excellent in portugal.

There are no differences between EU residents and the rest of the world when it comes to property purchases.

SimCityATExpert22 August 2022 19:00:44

11266

Be aware you will be taken advantage of. The prices are higher and services worse for non nationals. New apartment buildings not good quality and very expensive , more than 500k for a sea view beach front apartment. Some builders will try to scam you as Rua do Oceano no 3, Albufeira.
- @drroxanakerns

Where do you get this from? Your personal experience?

I can honestly say that this is not the general case, I know many foreigners that have had no issues at all.

lisbonclarajeeMember22 August 2022 20:45:25

@Guest123945 Being a consultant for few years, But if you are not for golden visa. You can go and check some cities near Lisbon. However, if you are same to the people from UK, just like algarve, I suggest you go and stay a few weeks in each city.

After feeling it, knowing it better… you will make a good decision…

lisbonclarajeeMember22 August 2022 20:47:17

@drroxanakerns haha, have you been bite by an agency?

SunshineSaraNew member22 August 2022 20:54:18

I had a private agent that assisted me to purchase a property in Tavira, East Algarve, worked out very well.

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