Hi, today 'jornal de negócios' feaures a special section on real estate in Portugal. It is in Portuguese, but use google translator to translate to English. http://www.jornalden...ate=HOMEPAGE_V2
The discourse is pretty much the same... try to talk up the market. In particular there is a piece where estate agents are interviewed. Guess what the position is? Good time to invest, house prices are close from the bottom... you can buy and rent... bla bla bla
Obviously I left a comment... with some basic maths, the return on investment is 2.35%, assumiing that it rents for the 12 months (and the tennant pays!) and that there are no extra expenses (e.g. major renovation). We know these are pretty bold assumptions, so the actual ROI is likely to be lower.... And if we factor in price depreciation, then you are more likely than not to lose money. As I have always been saying, until the Gross return is 10% (today a good one is 5-6%), there is no point in buying. and even if it gets there, the decision should not be taken lightly.