This thread is meant to get feedback and thoughts about the value of real estate in the post-COVID environment, specially related to Golden Visa investors in Portugal. Any relevant input from southern Europe would be welcome here.
There are really one premise and three subtopics here:
Premise 1 - Due to COVID, the value of real estate will decrease in general. This is virtually a fact after discussing with multiple people in Portugal and seeing the impact on the tourism industry in Portugal.
Some have suggested that this can create some good opportunities for GV investors. Whether that is true remains to be seen. But it opens some points of discussion.
(A) When is the optimal time to buy to get the best values from the COVID related downturn in real estate market whether through funds or direct real estate purchase.
(B) with respect to investment funds, what types of properties will perform best post-COVID. Some funds focus on retail, some on residential, some on anything that is a good value. Which will prevail and when?
(c) For anyone on the ground in Portugal can you provide any anecdotes? For those owning or purchasing real estate in Portugal, can you offer any suggestions?
Does this law about not requiring payment of principle and interest apply only to bank held mortgages or also to rent itself? If property owners cannot collect rental income, then any type of real estate investment or fund will perform very poorly and negative yields.
it’s for any mortgage - rental property or self-use property. Not for rent, people still needs to pay rent!! However it’s hurting for those who rely on holiday let like airbnb as they are not getting tourist to rent.
The retail sector will be helped by a couple of recently enacted bills including rent discounts of up to 50% on lost sales in retail schemes during Q1 (potentially extended to Q2) and subsidised rent payments (with a cap of €2,000 for monthly rents up to €4,000) in high street retail. As for hospitality, and according to the Portuguese Hotel Association (AHP), with 80% of hotel units closed, the recovery of the sector is now not foreseen until 2024.
As I read this it means that commercial real estate investments are possibly in trouble even though it reads that “the sector will be helped”.
