Hi All,
Just read the above article and wanted to know your thoughts on the rising property prices.
Does it make any economic sense at the way the property prices are going up…will it stabilize or will it turn out to be another bubble to be burst?
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I visited over Summer for a holiday (but also to pay attention to the market). From what I see there’s lots of construction going on, which is positive, but I also see a huge disparity in earnings/lifestyles, and this is obvious in the property market.
It’s not uncommon to see a street with a beautiful €750k+ home that is well kept. Next to that there are 2-3 far less maintained properties. Then usually a derelict property. Then it all repeats.
Property investors are often told to “buy the worst house in the best neighborhood”. My initial impression is that Portugal’s economy isn’t particularly sustainable, and buying a beautiful home there is the equivalent to “buying the best house in the worst neighborhood”.
Of course this is an exaggeration, but as with buying properties in most of Europe right now, I’d only be interested in buying a deal of a property.
This said, with what I know of immigration right now, I expect the run up has much further to go as taxes are going up everywhere, and the NHR program still represents a good opportunity to most HNWIs around the world.
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Hi Jase,
Appreciate your valuable feedback.
Yes it is very important to locate the property in a neighborhood where you get better value for investment made in the long run.
If someone is planning to settle in the same property then it is a different subject all together.
Cheers.
Ronson