So, a lot of people buy places in Portugal for their GV with the intent to rent them out to help pay for them.
From all that I’ve seen, it seems as though it’s not really a great money-maker - that by the time you pay taxes and service and utilities and whathaveyou, you might break even or make a percent or so. You might do better than that on a vacation rental perhaps.
Is it working out differently than that for people?
agreed. I would love to see a pro forma from someone with experience on this topic.
Outside Covid times there were reasonable returns on properties in Lisbon and Porto, all year round. Other locations like Algarve there is more of a holiday season (summer). Longer term rentals are possible, produce lower return but have lower costs. Holiday and short term rentals need a lot of local support and all the services costs are with you. Always a good idea to work with a local management company. The best ones are the longest established.
I always advise my clients to assume they won’t get any rentals on the property given market conditions and what you actually get is a bonus and this is the right mindset to approach it. If someone tells you a certain rental expectation and you don’t get it, you’ll be a bit upset.
I’m wondering if the situation has changed in late 2021. Would love to hear about experiences from GV holders.