20% deposit -off plans in "Silver Coast, Portugal" in 2007... hang on or cut losses?

G

Grange

Guest
I placed a 20% deposit on a property off plans in Silver Coast, Portugal last year, due for completion in Jan 2009.

Given current reccesion, is it likely that I could see much profit in this investment in the next few years including apprecitiation and costs associated with it?

...... or should I walk away and lose my 20%?

Any advice appreciated
 
Re: Portugal Investment

Property prices here in Portugal have been steady over the last few years and look set to remain that way so if you are looking for substantial capital appreciation you may well be disappointed however it is very unlikely to depreciate in the way that Spanish properties have. Unless your circumstances have changed since you put down the deposit (job security, etc) I don't think you should cut and run at this stage. Are you intending to let it or use it yourself?

Sarah W

www.chavetejo.com
 
Re: Portugal Investment

Grange,

Insufficent information. What's the name of the development; how big; type of property; reasons for buying; how long did you intend to hold the property; purchase price; purchasing costs; annual service charge etc.
 
Re: Portugal Investment

Sorry Sarah but little point in an estate agent giving a view like that. So the Portugese market is exempt from recession ?? -- i don't think so. I have been looking at Villamoira for the past few years and prices are well marked down in the past few months.
 
Re: Portugal Investment

To say that property prices in Portugal are unlikely to track those in Spain is a nonsense; the two markets have tended to rise and fall at the same time historically and are doing so today.

Prices in Portugal, as in Spain, are dropping and bargains are to be had in the resale market. Few bargains however are to be found off plan, and if you bought off plan on the silver coast you are probably facing a bit of negative equity if you complete. This will of course depend on how much you paid in the first place.

The Portugese property along the south coast is more popular with foreigners than further north, primarily because of better winter weather. Spain has the same divide; the warmer areas around the Costa del Sol and Costa Calida are more attractive to retirees and seekers of winter sunshine.

Regardless of what the estate agents tell you, the Mediterranean has warmer weather off season than the Atlantic. The market on the Silver coast is more specialised than the Algarve, with a mostly local (and consequently smaller) customer base.

If I were in your shoes and the deposit was small I would be tempted to walk; if you bought at a good price at the time compared to present levels I might take the hit and hang on for a few years. The decider would be whether I liked the area and was going to get a lot of use from the property myself.
 
Re: Portugal Investment

Sorry Sarah but little point in an estate agent giving a view like that. So the Portugese market is exempt from recession ?? -- i don't think so. I have been looking at Villamoira for the past few years and prices are well marked down in the past few months.

I didn't say the Portuguese market was immune from recession, my point was (away from the Algarve, which I should have highlighted) property prices in central Portugal haven't risen dramatically in the past and aren't now falling dramatically although there some people selling due to reduced circumstances in their home countries. As my carpenter recently opinioned "Portugal has always been a poor country so why should we notice any difference?". As per BigRog's post it's impossible to advise the OP without knowing far more details of his/her circumstances.

Sarah W

www.chavetejo.com
 
I placed a 20% deposit on a property off plans in Silver Coast, Portugal last year, due for completion in Jan 2009. Given current reccesion is it likely that I could see much profit in this investment in the next few years including apprecitiation and costs associated with it or should I walk away and lose my 20%? Any advice appreciated

I bought a two-bed apartment in Atlantico Village near Pedra do Ouro on the Silver Coast last June for 185000 euros.
I bought it mainly as an investment and was going to keep it for about 3 to 5 years.
Was hopping that when the golf course was built next to it that this might increase the value.

What type of rent would a two-bed apartment achieve on the Silver Coast in the high season and would there be much of a rental market outside of the summer months.
 
Re: Portugal Investment

I placed a 20% deposit on a property off plans in Silver Coast, Portugal last year, due for completion in Jan 2009. Given current reccesion is it likely that I could see much profit in this investment in the next few years including apprecitiation and costs associated with it or should I walk away and lose my 20%? Any advice appreciated


Will they let you just walk away? If you don't complete and they sell the property for say 50% of the original purchhase price (no doubt to one of their cronies) will they be able to come after you and collect the 30% shortfall through the Portugese and Irish courts.

I was in an EA last year on thr Silver Coast last year enquiring about a property that I had absolutely no intention of buying.

The next thing the EA wanted to arrange finance for the property and requested my payslip. This was despite the fact that the property was suppost to be self financing. At that stage I realised that it would not be a simple matter of walking away and not completing the contract, if I decided that I wanted to pull out for whatever reason. There would be nothing to stop them chasing the debt in Ireland and taking me to court here for any shortfall.


Murt

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