Investing in Portugal

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Investing in Portugal Property

Portugal is now among the most searched destinations on the internet for overseas investment. 60% of the British population are considering investing or moving abroad in the future (Barclays Bank June 2009). Appetite for owning a property here has not gone. It was just suppressed by the unknown; the fuel prices, the food prices, job security, exchange rates. All of these factors through 2009 reared their heads to provide further reasons to do nothing. However, while not all of these factors may have disappeared, we are not stagnant in our desire to invest and provide for the future. Property is the only investment that has proven again and again to be the one stable investment.

Portugal is and always will be just a few hours by plane with its mild climate, friendly people and a history of treasures and marvellous natural beauty. It’s still one of the safest places in the world; no terrorism, no war and it’s very rare to see serious crimes that now dominate the UK & Irish media. Portugal is also a wonderful brand “I’ve bought in Portugal” is a statement to be proud of.

2010 has seen renewed optimism among the developers as clients return with the desire to buy. This has resulted in them purchasing land and starting new projects and this has allowed the investor to pick off some outstanding stock at less than valuation prices.

The Next Twelve Months

As an investor now is the time to move. We firmly believe this strategy. There are some very desirable properties at excellent prices. Once these are gone and there are few then it will be a while for the next level of properties to hit the market as the developers start building again. Alternatively it will be the resale market where the bargains can be found and whilst this can prove fruitful it can also have bad side effects with maintenance and running costs.

By the start of 2011 there will still be a shortage of good quality projects. There will be undesirable properties, there always are, but they were never a good investment. You buy the best units at the best price and then they will always remain a commodity that achieves a quick and profitable outcome.

As optimism returns, so will the volume of buyers and confidence will return this year as the recession drifts into people’s memories and the housing market and banks return to normality. The demand will return but the supply is behind, catching up for two years of shelved projects and indecision. So perhaps the overnight gain is a real possibility. Buy now at 70% of valuaton and sell back in one year. It’s happened before. For more information on Property for sale in Portugal contact the Portugal property team and send any emails to info@portugalproperty.com

Published in: Money