I am planning to engage in Portugal GV program by investing 280k € in Mercan. The property proposed for my investment is Ocean View hotel at St.Andre. Anyone has any thoughts or inputs on how guaranteed or safe this is?
I’m currently a Mercan investor and would say this is a high-risk investment. There are a lot of unknowns, and once in, there is no pain-free way to get out. That said, I’d say the returns in terms of the GV are equally high.
Ultimately this is not a financial investment; it’s a lifestyle investment. You will lose money on this in terms of opportunity costs and inflation. It’s a long lock-up period of at least seven years, perhaps more depending on when you can get title to the land and they can complete the project.
Mercan’s only real risk is reputational, and that is significant. They have a good reputation and a track record of completed projects and want to keep it that way. Most frustration is related to the speed of the Portuguese government and its impact on projects and paperwork. Still, I’ve not found what I would consider a legitimate complaint about them. They are a bit slow but responsive to any questions or concerns.
There are lower-risk and more affordable ways to get a GV, but your circumstances would require you to travel frequently and have time flexibility, which was a no go for me.
If I were starting now, I’d factor the currency exchange rate into my timing. It’s my opinion towards the end of this year to early next year. The dollar will begin to strengthen again. I saved close to 30K USD through luck and timing the exchange rate.
Best of luck!
Agree with casaportugal.
You may also be interested in Pela Terra - which is the one I went with. It offers something different from property exposure. The folks there are just excellent. Obviously every investment is nuanced in general, and also to your personal situation.
Hello Nik,
I too am considering pelaterra, and though have some reservations, I’m attracted by the simpler (than real estate) proposition, as well as the sustainability angle.
Can I ask your reasons for choosing this route and this fund for your GV applications? How far down the process are you, and are you happy with your interactions so far?
Thanks in Advance,
Harsh.
Hi Harsh,
I find it more appealing as an investment. There’s the knowing that it’s making the world slightly a better place, but also that farmland assets are not correlated with the rest of the macro economy. It seems to me a safer investment. Perhaps less exciting in terms of upside, but more predictable, less risky. I invested a year ago (still waiting for my pre-approval - sigh). None of the other investments I found had those attributes.
I’ve found the folks there really excellent - passionate about what they’re doing, capable and smart, friendly… just good people. No reservations in recommending.