Villamoura, Portugal, Lusort, et al......

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Mechman

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Hi all

Just wondering has anyone here had any experience of the Lusort developments in the Villamoura area of Portugal.

Have looked at Villa Sol and Monte Laguna, both 2 bed apartments and 3 bed townhouses. They aren't cheap, but I was wondering are they sensible for the area, hovering around €350-€400k?

The place seems grand, mostly golf orientated of course, and both myself and Mrs like it.

I imagine there wouldn't be much capital appreciation at those kind of prices, and having spent 6 hours reading therads on here today, I'm concerned at the possibility pf massive ongoing development a la Spain along the Algarve, and the prposed new hotels as well taking away from any rental possibilities.

The reason I'm thinking of buying is to reduce my tax bill, by taking out a pension mortgage - I would hope to not have to rely on rental income to fund it, but would like some rental to hopefully cover maintenance cost. E'd see it as a holiday home / retirement place in 20 years or so. It would be a great bonus if there was capital appreciation over the next 10 years or so of course.

Theres also the Palymera development as well, at much the same cost - anyone dabbled in this?

Or would I be better taking the cash and going somewhere else altogether?

All thoughts and comments greatfully appreciated
 
Noone ever looked at these developments then?

Is Portugal becoming relatively unpopular then perhaps?
 
Hi Mechman

I had a look at several properties in Vilamoura last February and nearly bought a two bed apartment in Praia Village for €300k. I spoke to the guy in the Lusort office and their development plans for the new Marina are very impressive.

My big problem was that everything seems to be geared to new developments. Sure, they keep going up in price, but I'm not sure there's a realistic resale market and it seems to me that there's a huge difference between the price people are being asked to pay for new builds and the price you're likely to get if you ever need to sell.

So my advice (for what it's worth) is to go ahead and buy if you can comfortably afford the price and you enjoy staying there, but only if you are prepared to take a big hit if you find that you need/want to sell the property somewhere down the line.

You might make money on it, but my perception of the market (again, for what it's worth) is that you are more likely to lose money than make a profit if you find yourself having to sell because of changed circumstances.

Regards
Homer
 
Thanks for the reply Homer

It seems between Lusort and Oceanico having Villamoura in theie sights, there is oing to be a LOT of development happening there over the next few years, particularly due to the "20 Year Plan" they keep talking about, including the new marina.

The prices ae going up and up there though - its not like Bulgaria, well maybe it is, maybe its more like Ireland - if each new development jacks up the price, it will only be the guys who have the yachts in the marina who will be able to afford anything there !

I've now kinda doscounted Vila Sol, the one near Quarteria and the Palymera development - seems all the action is going to be up the road near the Victoria Golf Course where the new Tivoli Hotel is being built, the Residences development is there, and I think thats near where the Priaia Village is too?

Phase 2 of Monte Laguna went up by 10% and Phase 3 another 10% so Lusort said - can't see why as there is so much supply, but there must be no shortage of buyers either?

I take your point though that it would be hard to sell, if I had to, unless the price was at a substantial discount.

Villamoura just aint cheap
 
The "Spanish Algarve" just across the border is being touted as a cheaper alternative. I've been to Isla Canela several times over the last few years and they can't give the properties away. Some resales have been on the market for three years to my knowledge, and the take up of commercial premises is less than 10%.
 

Bargains to be had there then ! Did you buy anything there then? Or thinking of it?
 
Hi Mechman,

No way !. The beach is nice, and there are several golf courses within 30 minutes drive, but there's nothing else there. The local town of Ayamonte is pleasant, and from there you can take the ferry across the river to Villa Real, but a week or two's holiday would be enough.

Plus, from an investment point of view it's a no-brainer; new blocks going up at a rate of knots, but virtually no resale market.

This is happening in lots of places both overseas and UK, and there is a very simple reason - developers can offer financial packages, individual sellers can't.
 

Seems the only reason to buy anywhere out there is if you fancy a second home then - theres no investment value so

Would be different if close to retirement, would get good use of it then - in your 30s or 40s, and if you want to see the world, seems to be very little reason to buy anywhere in the Algarve, either Portugese or Spanish then?

Who is buying all these places then? I'm confused?
 
Mechman,

I think the bottom line is that very few people are buying in these places. I read somewhere that there are an estimated 1 million unsold new properties on the Spanish Costas.

If you are buying for your own use, fine, but go for a resale; there are some very desperate sellers out there.

For an investment, then a top end villa, minimum 4/5 beds with pool, of course; the sort of property offered to rent by holiday companies like
James Villas.

Elsewhere, for the longer term investor, a building plot in Southern Cyprus. Currently land sales are VAT free, but VAT @ 15% will be introduced next year.

My personal favourite are at the moment is the Far East. There are some interesting leaseback opportunities around.
 
Thanks for that Rog

You'd get a lot of time in those JamesVillas properties for 300k

Nice places there
 
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