Hi folks - does anyone have experience being a landlord in Portugal? Not Airbnb - regular rental contracts. I’m somewhat curious about buying an investment property and renting it out as a way to generate some income and asset value in euros. Being a US citizen effectively rules out stocks, as FACTA means most European brokerages won’t let you trade.
Would be interested to hear from anyone who’s doing this - what are the pain points and pitfalls, what is your recourse if you end up with bad tenants, etc. Was it worth however much headache? (And how much headache is it?)
Never ever my brother got hotel room and accountant charge 70 bucks for preparing and send monthly slips to tax office .Plus all beurocracy kills me.Just stay on sgov buy the dip etf s .Reit is non sense here maybe before covid ,it was okay but not anymore
Seems very risky. Common knowledge (unsure how accurate it is, but it doesn’t sound unreasonable) is that it takes forever to evict someone, since the courts are so slow. So if things go poorly, it’s really bad really fast
Why are you “ruled out of stocks”? I’m assuming from your question you reside in Portugal - you can open an account in the U.S. with Interactive Brokers or Schwab International. I believe both are happy to work with U.S. expats.
Yes, I live in PT. European stocks, I mean. Denominated in Euros. I could buy international ETFs through a brokerage but it doesn’t hedge against the exchange rate.
Got it - IB (and I assume Schwab) allow you to purchase stocks from over 36 countries on all the major markets. Also, there are U.S.-based ETFs for European public companies that are currency-hedged to the EUR, e.g. HEZU. Although its ER is a bit on the high side (0.53%), there may be cheaper ones, and it might still be cheaper since you’d be saving on the trading fees.
You have to get a property manager. It will be impossible to fix things like a broken A/C unit without a lot of Portuguese contacts. So, the rental income is not that great.
As an asset, I found it to be a good hedge against US tech stocks, even if the returns are not outstanding. But that was just good timing. The property prices might cool down.
The property managers are also pretty good at vetting tenants, though. It is in their interests for everything to go smoothly.
This can happen in any country and PT is no exception. However, the new rules are more favorable than the past and it leads to faster resolutions unlike before.
Not necessary, have you heard about the multi-risk insurance with full cover and 24x7 assistance?
I would disagree… PT rental incomes are far better than my apartments in other major cities across including NYC (Strictly speaking on percentage wise).