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House Price Crash Forum

Portugal Housing Market


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HOLA441
Portugal is now one of the cheapest civilized places in the world to live. As part of the contraction, both asset prices and many retail prices in Portugal have dropped substantially.

The middle/upper-middle class segments of the real estate market have gone no-bid, and investment property owners with mortgages to service are getting desperate.

To give you an idea, I’m renting a spacious 3-bedroom, 2000 square foot luxury apartment in a new(ish) development that was completed during the real estate boom a few years ago. It’s costing me a whopping $60/night.

The complex is a ghost town. I’ve seen four human beings in as many days, and as I stand on the terrace surveying the other units, most of what I see is vacant.

Property owners I’ve spoken to say that they don’t want to rent to locals under a long-term lease because the locals can’t pay. And when they stop paying, the government makes eviction very difficult.

This makes their market of potential lessees quite small, hence cheap prices.

Read more: http://www.sovereignman.com/expat/five-things-ive-learned-on-the-ground-in-portugal/#ixzz20F8V1Sat

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Reminded me of an old one

I wonder how Christina is getting on?

Christina, 47, from Pimlico, west London, bought the property for 300,000 euros in 2008 (£250,000 at the time). She has been considering selling the property to invest in a buytolet in the UK. However, she is rethinking this strategy in light of the current situation.

'The rent is covering the mortgage and other costs,' she says. 'The Algarve has been awful property-wise because of a glut of supply. But thankfully, they are not matching supply in other parts of the coast, which are more attractive and cheaper.' As head of the Portuguese Chamber of Commerce in London, Christina has a good grasp of the country's economy and is upbeat about the prospects for her property.

Even if Portugal left the euro and returned to using the escudo, she believes the impact would not necessarily be negative - and might even increase property prices.

Now would be a bad time to sell, she believes, as many properties have gone on sale because 'people have taken fright' at the country's financial malaise. But if she was offered 320,000 euros (£266,000), she would probably sell and reinvest in Britain.

Christina says: 'I'm confident that if I sit on it for a year or 18 months, I will be OK because then I will have more than one buyer to choose from.'

Read more: http://www.dailymail.co.uk/money/article-1337826/Should-holiday-home-owners-stay-PIGS-storm.html

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Christina still owns property in Portugal in Oct 2010 when doing A Place in the Sun interview. Not decided which buyer to choose yet?

http://www.aplaceinthesun.com/news/feature/tabid/131/EntryId/430/Interview-with-Christina-Hippisley-from-the-UK-Portuguese-Chamber-of-Commerce.aspx

Spreading the word about Madeira property in April 2010

http://www.madeira-real-estate.com/

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May 2011 Christina is still bullish on Portugese property

Portugal's problems have been different from those of Greece and Ireland, the other EU countries that have needed bailing out, we have put a lot of effort into explaining that, when it comes to buying property in Portugal, the bubble hasn’t burst the way it has in Spain, simply because there was no ‘bubble’ in the first place.

“Despite the global financial crisis, the Portuguese property market has remained relatively stable. Demand, of course, has been drastically down, but prices have not dropped dramatically, as Portugal has never suffered from the over-supply of properties that we have long seen in Spain. The market is coming back slowly, and Portugal will be better placed than most countries to benefit when it does.”

http://www.businessnewsalgarve.com/tabletalk_view.asp?t=Table+talk+-+Christina+Hippisley&id=133&cid=0&scid=0

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Quote

they don't want to rent to locals as the Gov makes it hard to evict them when they wont pay

This is exactly whats happening in Spain to many Brits who rent out to Spanish who also wont or cant pay and get no help fron the authoritys.We have 3 familys in our complex who enjoy all the facility's of the community and pay f all apart from the first months rent which gets them in then its free :angry:

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20k to rent a flat in a low wage country like portugal

who the hell is this idiot.

its not that they wont rent to the locals, the locals aint bloody stupid to pay about 10 times the usual rent, thats whats wrong.

but lets just sit and giggle at their stupidity

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