In the real estate market the term “dream house” is much bandied about, but the real dream has always been the holiday home. With primary residences you have to bear in mind commuting distance, school district, storage space, resale value. However, people feel freed from such practical constrains when looking at a holiday home for a different set of needs, such a recreation, retreat and reunions.
Luis Ledo, Managing Director of the real estate agency Casas do Barlavento, warns that the factors one looks for in a primary residence must also come into play when searching for a holiday home. “Buying an overseas property means different things to different people. Some want a straightforward financial investment and, however distant, it can seem a safer bet these days than stocks and shares or pension plans.
“Others buy for a total change of lifestyle and plan to spend the rest of their lives in sunnier climes. Some opt for a combination of personal use and to be able to let their asset to cover the running costs.Today British purchasers are much more aware of the overseas market, but some do get carried away with the ‘dream’. Even if you plan to buy a property for your family to use for years to come, you still want to know you’ve made a wise investment.”
He continues: “With much more competition from emerging and cheaper markets, such as Croatia and Bulgaria, the western Algarve is still looking good as an investment proposition. It can’t compete on price but it competes on any other factors. The quality of build is far superior to many other European destinations and our old rival, Spain, has had some terrible publicity lately.
“Portugal is also attractive because of the crime rate is low. Ease of travel is another factor, with so many regular and reasonable flights to and from the UK and such a short flight time in comparison to other destinations.
“Portugal’s infrastructures and road systems are now very good, cutting travel times to and from the airport and making the whole of Portugal easier to explore. We are also attracting high profile events with everything from major concerts to golf, tennis, sailing and motor biking events that attract a diverse range of people. Communication is simple as the majority of us speak English. It’s all makes for an enjoyable, easy experience.
“The region from Lagos to Sagres continues to offer excellent capital growth and returns. Within the last five years capital growth has been in excess of 10 %. Aljezur on the west coast is a great option on the moment. You can still pick up plots of land at reasonable prices and new developments are starting to take shape. When choosing a property for investment, consider all the key factors such as the right location, quality of build and amenities – but make sure you have an exit strategy.”
All agents have off plan properties on their books but Luis explains the difference of this newly launched website, http://www.algarve-offplan.com
“We have a dedicated team looking for projects specifically to suit the investor and we simplify the process for them. We perform due diligence checks to ensure all the necessary licenses and paperwork is in place. Our network of contacts with local developers and builders enables us direct access to early off plan opportunities before they come to the general market, ensure a more attractive price. Off plan purchase is still the best way of maximizing return.”
With offices in Lagos, Aljezur and Praia da Luz, Casas do Barlavento as established itself working exclusively in the western Algarve.
Quote: Algarve Property Magazine