Where to Buy
Whilst Porto is a beautiful area if you want the warm weather all year forget it , the Algarve has a microclimate and if you compare monthly climate statistics on the web e.g. January average Braganca (North) 8ºC and Faro (South) 16ºC. Have you considered inland Monchique where at the moment there are still some cheap properties to be had. No fear of overdevelopment either as the planning regulations are strict there so there will never be a surplus of properties for sale making any investment in the area a good buy although I believe prices will increase in the future as it becomes more popular. The rental market certainly is good as there are a number of people wanting to be near everything thats going on in the Algarve but being able to return to the peace of the countryside and enjoying the real Portugal.I'm currently renting a place in the Algarve and am thinking of buying somewhere in Portugal. But at the moment I am not convinced the Algarve is the place to buy. I can't see there being much capital apperciation, its already too expensive and with all the building going on I'm sure the supply is going to outstrip demand. I remember the days when it was impossible to find a place to stay here in August, now its not a problem at all. The days of full occupancy are gone!
Can anyone suggest any other areas in Portugal I should be looking. I know all the talk has been about the silver coast but I am considering Espinho. Its still relativly cheap, about 120K euros for a 3 bed apartment, and with ryanair flying to Porto I think prices should rise as the Brits discover it.
Does anyone know what the long term rental market is like in that area. The plan would be to rent out the property and use the income to pay my rent here in the Algarve. Maybe even leverage it and use the rent to pay a mortgage on a one bed place here. Two for the price of one!