PORTUGAL AND THE ALGARVE ARE GOING THROUGH AN OUT-OF-CONTROL SPECULATIVE HOUSING BUBBLE.
SHOULD COUNTRIES SUCH AS TUNIS, TURKEY, or EGYPT BECOME STABLE, PORTUGAL IS LIKELY TO EXPERIENCE A REAL ESTATE CRASH.
WHILE THE COUNTRY CONTINUES TO ENJOY A XENIAL REPUTATION, THE FACTS ARE GRIM FOR ANY AMERICANS ON A MODEST SS ALLOWANCE (PAYING OUT 2,000 – 2,500 EUROS A MONTH FOR A RETIRED COUPLE). WHO WISH TO SPEND THEIR GOLDEN YEARS IN PORTUGAL.
SMALL VILLAS THAT COST BETWEEN 100 and 150K EUROS 10 or 15 YEARS AGO HAVE NOW DOUBLED. SHOULD THE BUBBLE BURST, THEY COULD FACE RUIN IN A FOREIGN COUNTRY, WITH NO FALLBACK HOUSING ASSETS BACK HOME.
MOREOVER, IT IS LIKELY THAT THE LEFTIST GOVERNMENT WILL CONTINUE TO TARGET HOME BUYERS AS A TRAPPED REVENUE STREAM.
IN MAY 2018 ALONE, THE COST OF HOUSING INCREASED BY OVER 16%.
FLIPPING IS A MAJOR PROBLEM, WITH THE LEFTIST GOVT CONSIDERING DRACONIAN LAWS TO HEAVILY DING THOSE WHO SELL PROPERTIES BEFORE 5 YEARS.
IN GENERAL, THERE ARE NUMEROUS AND CONFISCATORY TAXES INVOLVED IN BUYING AND SELLING PROPERTY FOR A PROFIT IN THE ALGARVE. RENTAL INCOME IS TAXED AT 28%, IF YOU ARE A NON RESIDENT.
COMBINED WITH THE FACT THAT LONG TERM CHEAP LETS HAVE BECOME SCARCE, PORTUGAL CAN NO LONGER BE SAID TO BE A BARGAIN EUROPEAN DESTINATION.
In a world where nothing is the way it used to be, and Chinese interests control Club Med, it pays to know a thing or two about the lay of the land.
In the Algarve, long-term rental (aluguer de longa duração) unfurnished (sem mobília) apartments (apartamento) for an entire year are apparently harder to find than honest Republican politicians.
Word has it that these are very expensive.
This is because of Portuguese rental law favors tenants and maked it hard for rapacious landlords to indulge their innate sense of greed.
As is the case around the world, long-term rentals typically do not include utilities such as gas and electricity / heating or Internet. In Gouna, I always used to ask for what to expect in that regard before I rented a place.
In Tavira (and elsewhere) you can always find relatively affordable villas like this during the offseason, off the beaten track. But who wants to live with bloody mountain goats in the middle of nowhere? And come summer and the shoulder seasons, you’d have to move.
You can also rent 1 or 2 bedroom condos near some sort of resort beachie area pretty easy, but I’d rather sleep in cat vomit than get stuck in a geezer magnet like that and help pay off someone’s second mortgage or finance some foreign speculative REIT bet.
We have made a new friend via social media who said it may be possible to get touch with someone who can rent us a nice flat for under 1,000 euros a month for a year in Tavira proper.
There also online ads; something like this goes for US $810/m.
I will also look for ads in the English language papers.
Also, bulletin board in the Supermarkets are apparently very effective means of finding lodging.
Walking along the houses by the Gilão river, with my eyes peeled for FOR RENT signs, is also an idea.
Finally, let’s not forget that pubs are often are a very good source for town scuttlebutt and rental tips.
With everyone in the UK except dear Aunt Nellie looking to invest before the idiocy known as Brexit kicks in, villa prices are no doubt going to smoke even more in the year ahead.
The stars would have to align for this to work.
My original hope was to be able to find a villa for under 175K euros. This now appears to have turned into a pipe dream.
Rich is what rich does.
I still have a paid up house in an upscale gated community in Florida, a nice car that’s in tip-top shape, a nice Trek bicycle, a nice SUP board, and a gorgeous inlet where I can paddle it like an aging Connor Baxter.
With my team the NY Jets looking solid, and Trumpo about to eat shit in November, I wouldn’t mind it one bit if I ended up this year kicking back and soaking up South Florida perfect 6-month winter and maybe even writing something about the Algarve to pass the time.
Good times may be around the corner.
After all, the nasty old prick across the street isn’t going to live forever.