I told you yesterday about a recession sale in Costa Rica that was no bargain.
Today, the real deal. Here’s a bona-fide recession sale…not in Costa Rica, but in Portugal. In fact, this is the best euro-property investment opportunity to cross my desk in a very long time. It could amount to a chance to own next-to-free in one of Europe’s most proven rental markets.
Bear with me, and I’ll explain.
First, let’s get our bearings. We’re talking about Portugal’s Algarve, specifically the village of Praia da Luz, one of this region’s most popular family seaside holiday destinations.
We’re also talking about one of this country’s most proven developers.
Here’s the deal:
You purchase a fully furnished one- or two-bedroom property at a 22% discount off list price. Discounted units are available from as little as 228,150 euro. The furniture package is included at no cost.
You buy for almost no money down. Under Portuguese law, you will be required to pay the stamp duty, notary fees, and some other associated costs prior to completion, but, at completion and closing, these costs will be mostly refunded to you by the developer.
Even your fixed legal fees (of 1,200 euro) are included in the cash-back agreement.
Furthermore, you buy with guaranteed financing from a leading bank. Interest is Euribor + 1.25%.
Plus…here’s the kicker: You buy with a one-year guaranteed rental yield of 5%.
European Correspondent Luis da Silva brought this opportunity to my attention over the weekend. When I read through the details, I was skeptical. It’s not every day you’re invited to buy next-to-free in a proven rental market.
So I asked Luis about the rental projections. Could they be for real? If they are, you’ve simply got to front the cash until closing. Then nearly all your capital is returned to you…and you own a rental investment property that could cash flow from month #1.
“The rental figures are very realistic,” replied Luis. “In fact, the amount could be higher in peak season.
“And, yes, as you point out, Kathleen, what makes the deal really interesting,” Luis continued, “is that, with interest rates so low, the properties do have a real chance of being cash flow positive from month #1.
“Plus, you’re being given a chance to buy at prices from about four or five years ago at least. And the product is quality. You’re in Praia da Luz, 6 kilometers west of the historic town of Lagos. You’re within walking distance of shops, restaurants, bars, etc….and about 200 meters from a wide expanse of beach.
“You’re choosing from one-, two-, or three-bedroom apartments with mezzanine and private roof terrace…or from terraced duplex townhouses overlooking the swimming pool. There’s reception and property management service, plus 24-hour security, two big swimming pools, a children’s pool and play area, a poolside snack bar, a tennis court, and an Italian-themed restaurant on the property.
“All units are fully furnished to turn-key standard at no additional charge…even including fitted kitchens with Siemens appliances, air conditioning, and under-floor heating.
“Plus, as an owner, you enjoy a 30% discount off fees at the group’s golf courses in the Algarve, the Silver Coast, and the Azores.”
This is as close to no-brainer as global property investing gets.
Note that, as of this writing, there are but 17 of these units available. And, yes, I’m looking closely at buying one myself.
Luis can give you more information, answer your questions, and put you in touch with the developer to buy. Get in touch here.
“Last year, an analyst on Bloomberg television predicted parity in 2009 for the U.S. dollar, the British pound, and the euro: that is, one dollar equals one pound equals one euro,” writes intrepid Correspondent Paul Terhorst.
“Already this year the pound and the euro reached parity and have been trading near 1:1 for a week or two. Both are drifting toward parity with the dollar, although there’s still a long way to go.
“Parity means that if you own U.S. dollars, Europe is on sale.
“Here’s my advice: Take advantage of this better exchange rate, and spend the summer in Europe…or travel around for a year or two…or even buy a property in the English countryside…
“Think about it. Vicki and I plan a month-long trip to England and France this summer; this will be our first trip to England in a decade.”
“I have read with interest your newsletters and appreciate the opportunity to subscribe to your Overseas Retirement Letter, as I have.
“I am looking for advice for locations where our daughter and her husband could accompany us. They will need employment, though we will not. Our son-in-law is a computer nerd and will need hi-speed Internet access and then he can earn income. Our daughter is a professional nanny.”
— Charles D., United States
The truth is, it won’t be easy (in fact, it probably won’t be possible) for your daughter or son-in-law to find employment in a foreign country. A work visa is no easy thing for a foreigner to obtain anywhere in the world…unless he’s sponsored and relocated with the help of a big international corporation, for example.
Short of that, the best option is a portable career…some revenue-generating, laptop-based business you can do from anywhere. Perhaps this is what your son-in-law has in mind. Best choice for starting and operating an Internet-based business in the Americas would be Panama. Anywhere in Europe probably would work. In Asia, look at Malaysia or Thailand.
Speaking off-the-record, your daughter might find employment as a nanny overseas through less-than-formal channels. This would mean she’d be working off the books and without benefits or a contract. If that doesn’t bother her, First World-trained and experienced nannies are not easy to come by in the developing world. When I was in the market for one, I would have been willing to pay a premium for an English-speaking nanny with U.S. credentials…with or without proper work papers.