Property Movement ?
 

As a keen seller of a large villa do I detect a slight rising of interest from potentiual buyers ?With interest rates so low worldwide some people are cashing in on the lower prices of second homes. Not only will they have eventual capital growth on the purchase price but a good interim return by way of holiday rentals. This may be the way to go for cash rich investors ? Well I am hoping ...........????

Re: Property Movement ?
 

Two pigs flew over my house this morning;)

Re: Property Movement ?
 

hardly nothing is selling, prices will drop between 20% and 35% in the next 6 months, in general a lot of properties are way over priced

Re: Property Movement ?
 

restrctions of credit , having credit at low rates doesnt mean squat if its not being loaned.

The biggest impact to algarvean property is yet to happen , that of negative equatity on first homes.I would reckon that the majoirty of foreign owned property in the algarve is from mortgage equity.While the low rates are good for paying one mortgage just now , when the rates rise then offloading NEEDS to happen of second properties to keep first homes.Combine this with decreasing first home values then its a problem for some , but not for those with cash to buy and property investing vehicles ie funds.

My tip , if you need to sell then get what you can now , if you can ride out the storm for ten years then your back where you started , which isnt a problem unless you think that property values are your pension which means sell now for what you can get because its not going to get any better for the short and medium term.

I have seen people offloading 1 bed apts for 85k euros , which is what they paid for it 10 years ago , fortunately for them they made money form rentals , over the last two years though the profit and income has dried up.

This brings me to rentals , A subject that does my head in.I see for most of the year empty properties that could be making money for the owners.They want their apt rental money but also want to be there when its the rental season , these are usually the most vocal people of how the dream has turned sour and sometimes mortgaged to the hilt for the dream holiday home or rental property business.

10 years ago i thought the portuguese had learned form the spanish in overdevelopment , seems they hadnt.

Re: Property Movement ?
 

I doubt that the property market in general will be going anywhere over the next 5 years, maybe longer. The reason I suggest that are:

1) As far as Brits are concerned:
£/euro drop of 25% since 2008.
Drop in UK house prices still ongoing
Interest rates on savings all time low
Difficult to sell UK houses
Uncertainty about Euro in long term.

Portuguese developers will find it difficult to drop prices sufficiently to entice people, because they paid top dollar for land bought in 2007-09.
Only note of optimism is that if interest rates do go higher in Euroland then developers might be forced into reducing prices to get rid of the debt.
But I feel that is a long way off, and what if the PIGS countries are forced to either leave the Euro?
All very difficult questions, and no none has the real answer at the moment.

Re: Property Movement ?
 

We looked at buying a place on the Silver Coast in June but thought properties were overpriced and most of them shoddy. Many were unfinished and looked as though they had been in that state for a long time. The ones we saw are still on the market. We will wait a year or so to see if prices come down. We would be interested once prices drop at least 25%. We're in no hurry to buy.

Re: Property Movement ?
 

I don't believe this is going to happen. The last time I caught house prices info on TV, they said the number of properties sold has gone down and was at all-time low (or something like that), but the average price has actually gone up.

Various taxes on property licensing have gone up dramatically in the last year as the government and local councils scramble for money to plug their deficits. IVA has gone up and the goverment wants to add another 2% to it.

The only way house prices can drop that I can see is if Portugal gets kicked out of the Euro.

Re: Property Movement ?
 

I think it will happen once sellers come to terms with the good times are over, I know people who have had property on the market for 2, 3 and 4yrs plus and have just had a few viewings in that time but will not drop the price, its madness.

Most of them are holiday homes and investments and unless you are very well off, then people are holding onto their money and the last thing they are thinking about is a holiday home or a property investment where there has been to many built.

Also the estate agents needs to price them right instead of x amount to get the property on the books, but then tells the seller a few months later they need to drop it.

Its in a mess and will be for a few years, I think what masterbaits says will ring true

Re: Property Movement ?
 

Hi.
Does anyone know of any Mobile Homes for sale on the Algarve, that you can live in all year round. It would need to ba a good size around 38ftx 12ft. Will consider most locations though near the coast would be favourite. Cheers Keith.

Re: Property Movement ?
 

Hi Keith
Calico Park near Vila Nova de Cacela / Manta Rota would be ideal for you.
Good luck

Re: Property Movement ?
 

Thanks for that Monkeynuts.

Re: Property Movement ?
 

THere are a few legal mobile home parks but consider that sumer temps can get to the high 30s low 40s and like in a mobile could be unbearably hot.

It is also difficult to get permission to site your own mobile and get water power etc in the Algarve.

As for prices until demand increases then to a degree the prices question is not that important.
As others have said it is the availability of credit/finance that is dictating the level of sales NOT just in Portugal but throughout Europe and the US.

Re: Property Movement ?
 

Thanks Tell. Having already spent many months on the algarve i'm aware of the pros and cons. As here in uk when its cold you put on the heating in sunny Europe you just live the opposite way round if its hot put the air con on. I'm coming back to Portugal in November to look around so if anyone knows of any large mobile homes for sale that might interest me i look forward to any advice. Regards Keith.