Buying to let, can be a great way of making regular income, with a good longterm capital growth. becareful how much you spend on the property you want to let, make sure the local rental market will sustain the returns you would like.

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About what ppp says? More people than ever are looking... Let us be honest, there are less people willing to invest in properties today of reasons that I should not have to go in to. When it comes to the rental market? How can you compete with the resorts and Hotels, with the packages prices they offer today, including a rental car? So, let us be realstic whit out being to pessimistic. I beleive in the market not only in Algarve but also in other parts of Portugal. Whe it comes to Algarve we might be able to rent if we have the right location, the right property and the right price. There are a few priviligued properties that never see any crises, but that is only the very top of the market and very few properties Quinta Do Lago is the area I think of. There might be other areas or properties that are unique in some ways that might makes some good rental return. The return must be the only issue that is interesting, not how many days you are able to rent it, the fact that it is less people around and more proeprties for rent plus new hotels comming up every year should be clear enough. Please be very carefull to base any budget on rental incomes, if you not already have the clients rady to come and pay the price you ask.
When it comes to the market itself so is it up to us Real Estate Agents to try to affect prices on the projects in the Algarve, it is amazing to see that the prices are based on some kind of "Gold Rush era" or "Merry Christmas spirit". We need to get this forward cause if the projects stays on the prices as they are today, there will be other countries that will steal our clients. Lower the price on projects and offer clients attractive prices in the end that is our way out of this "crise" if I can use that word here?
We will soon drop a "bomb" 200 meters from the Beach in Central Algarve, T2, Underground parking, sea views of course, huge Pool etc for a starting price at 146.500 Euros!!! We will offer this to other agents as well, but first our own clients who will have a first choise.
Good luck in the selling!

QUOTE=Stefan;55232]About what ppp says? More people than ever are looking... Let us be honest, there are less people willing to invest in properties today of reasons that I should not have to go in to. When it comes to the rental market? How can you compete with the resorts and Hotels, with the packages prices they offer today, including a rental car? So, let us be realstic whit out being to pessimistic. I beleive in the market not only in Algarve but also in other parts of Portugal. Whe it comes to Algarve we might be able to rent if we have the right location, the right property and the right price. There are a few priviligued properties that never see any crises, but that is only the very top of the market and very few properties Quinta Do Lago is the area I think of. There might be other areas or properties that are unique in some ways that might makes some good rental return. The return must be the only issue that is interesting, not how many days you are able to rent it, the fact that it is less people around and more proeprties for rent plus new hotels comming up every year should be clear enough. Please be very carefull to base any budget on rental incomes, if you not already have the clients rady to come and pay the price you ask.
When it comes to the market itself so is it up to us Real Estate Agents to try to affect prices on the projects in the Algarve, it is amazing to see that the prices are based on some kind of "Gold Rush era" or "Merry Christmas spirit". We need to get this forward cause if the projects stays on the prices as they are today, there will be other countries that will steal our clients. Lower the price on projects and offer clients attractive prices in the end that is our way out of this "crise" if I can use that word here?
We will soon drop a "bomb" 200 meters from the Beach in Central Algarve, T2, Underground parking, sea views of course, huge Pool etc for a starting price at 146.500 Euros!!! We will offer this to other agents as well, but first our own clients who will have a first choise.
Good luck in the selling![/quote]

I was not sugesting for a second that anyone should try and compete with the package tour people, you wont have a chance but more and more people are looking for a different type of holiday, perhaps in some private house away from other tourists. Picnics by the side of a river some walking in the mountains, in the area that I'm seeling houses there are a lot of houses for sale way under the prices you are talking about and people do pay a little extra for the exclusivity of a rural holiday a number of the people I know who are letting here are already booked up for the summer and both visits to my website and enquiries are undeminished.
ppp

Believe me, I have heard that before. Of course there are not so many who complain during the high season, but we talk about those who put in their budget more than 60 days rentals. That is a different story and everyone are aware of that today, when not even most of the Hotels can not rent out all their rooms for less than a Air ticket price, you will have a problem to get your return with the prices you pay today (for the majority of the properties). The proeprties you talk about you might get some clients to, but they do not want tp pay coastal prices. 2007 was a minus on the rental inland, there was a small increase in the rentals on Developments (close condominiums), that is were you have the market, the only prblem is that there are more to rent than there are clients, so someone definitly loose, would you gurantee your client that they will not be one of them? Do not take this as a negative pic of the market it is still much better than have a property in the Antarctis ;o)

Ok some will lose not everyone wins my friend thats a fact of life you must be carefull about where and what you buy price+locaction+marketing= success or failure.
Properties In Pefect Portugal Mediacao Imobiliaria

Yepp, that was what I was trying to say and the sooner everyone admit that we are facing a global regression at the moment, the better. To meet todays clients requests and demands is not an easy task. As an registered Agent, we need to be even more iformed about what is really going on, on the market. This is nothing new, but we will have some good effect from this: Not serious Agents will go under, no matter if they have a lisence or not and over priced properties will go down to its real value. Thank you.

Just to add my views on the 'great investment in buy to let debate'

A serious invester will not just jump in an buy a property or properties just because they are seeing adverts and websites screaming out "great investment opertunities here!!"
The serious guys do thier homework and they know where to buy and importantly what to buy, long before everyone starts informing the masses that there are great investments to be had. (look at the Bulgaria mess)

There are good investment opertunities, especially in Central Portugal at the moment, however, to generalise and say that everything is a good investment is somewhat vague. for me a property that can be purchased for say 80,000 euros then rented (let) for say 430 euros per month is a good investment. its a good return in the invested capital and should give you more than you would get in the bank for your cash, (6% or so) on a long term rental basis, less hassle than short term. hopefully better ocupancy too.

A property purchased at say 300,000 euros that the investor/owner wants to rent to say the holliday market, can and in my opinion be harder to get a good return on. This market is hard work, less ocupancy and lots of hassle. although better per week returns than long term let, but lower ocupancy rates.
over all given the return against capital invested it would be a very bad investment. not something that many people would chose to do. better to leave the money in the bank.

there are different types of investment, buying to let is one where someone buys a property and rents it out, hopefully the rental income makes more than the money would elsewhere. while gaining capital growth on the property as a bonus.

an other is someone buys and then does something to the property to increse its value, resells the property and takes a healthy profit and moves on to the next investment.

what seems to be suggested above is that someone buys a property then tries to offer it as a guest house or b and b or a short term rental. while sharing ocupancy with the owner for hollidays etc. this is not an investment in the true sense, its just someone buying a holliday house and supplementing the costs by letting it out when they can. its a different type of business altogether.

sensible buy to let should have little to do with package hollidays or tourists. its about getting a long term tennant in there paying a good rent. and keeping them in there.

anything to do with tourism is not buy to let its a tourist based accommodation business, both are different from an investment point of view.

for me the best investment here in Central Portugal right now would be to buy cheaper properties (under 100,000 euros) make them ready to rent and have medium to long term tennants in there. there is a huge demand for rentals in our area around Tomar, not enough properties for the renters. that would be the smart investment or following the buy do up and sell route.

I am at the moment building a couple of houses one of which i am building especially to rent out, as i know we have a high demand for good quality rentals, so hopefully i will keep it full all year and achieve a good return on my investment

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www.gekkoportugal.com A guide to living, working and buying property in Central Portugal
www.chavetejo.com Central Portugal Registered Estate Agents AMI 7856