Portugal's Algarve is NUMBER ONE!!!

 

Nominated Number One in the World for investment by Channel 4´s 20 Best Properties To Buy Abroad

 

Did you see the UK TV programme, 'A Place in the Sun' on Channel 4 January 5th? Well maybe not, unless you have Sky TV. Going out to UK viewers at prime time 8pm, hosted by Amanda Lamb, it was a special, hour long, edition entitled 'the best 20 destinations to buy property in the sun'.

 

The criteria for evaluating the hot spots were the 'three P's' price, position and potential and the 20 destinations were ranked accordingly.

 

Read About Portugal and see Photos of the Algarve.

 

It was interesting to see mentioned, many of the prestigious areas where the Brits buy abroad such as Florida and the French Riviera, the Costa del Sol, a firm favorite with British investors was 14th place.

 

The up and, coming destinations in Eastern Europe, such as Croatia and Bulgaria, did rank highly as did Turkey.

 

Surprisingly the ex-Portuguese colony of Cape Verde was high up on the charts with the emphasis, that the property market there was about to take off.

 

One of the top five was Cape Town, in South Africa, but due to its distance from northern Europe it could not take the top spot.

 

The coveted number one position went to the Algarve. Yes, millions of viewers saw the highly rated show 'sing the praises' of the beautiful Algarve giving it, the best position, the best property prices and the best potential for growth.

 

If you want to buy a place in the sun, the Algarve is the best place -that's official.

 

Many British and indeed other northern Europeans have continued to buy property in this 'place in the sun' for many years and although a large proportion today buy in cash many need to finance the purchase with a mortgage. Up to a few years ago only a limited number of lenders, in Portugal, would consider lending to foreigners. Now things are changing. More banks are realizing that this market is attractive. If a purchaser is non-resident in Portugal they can borrow up to 80% of the value of the property and maybe a higher percentage if they are resident.

 

With current Euro interest rates approx. 2.5% lower than Sterling, a lot of buyers are opting to borrow here as opposed to increasing their borrowing in the United Kingdom. A word of caution however is that borrowing in a different currency means the debt is subject to exchange rate fluctuations. Maximum mortgage repayment terms are typically 15 to 20 years and it is possible to obtain 25 years with some lenders.

 

Borrowing in later life now tends not to be a problem as it may be possible, in certain circumstances, to obtain a mortgage at the age of 65.

 

If you are asset rich and cash poor, unlocking capital from an existing owned property, for any purpose, can be achieved by taking out a mortgage. It is however a good idea to look at the whole package being offered as a low headline interest rate might mean a high early redemption penalty and or the requirement of an expensive life assurance. With a lot more choice now available, it means that getting the right deal is very important.

 

You can use the services of a local mortgage broker who will survey the market and recommend the (best lender based on the individuals requirements) bringing you one step closer to owning that "place in the sun".

 

According to the World Travel and Tourism Council the Algarve is set to become the most sought after holiday destination in Europe!

 

In their summary the WTTC’s analysis of the Algarve said that the Algarve has still not tapped into its full potential, in fact it's far from it. The Portuguese government are doing all they can to put together an extensive package that will encourage investors to the Algarve, and should have their new plans in effect sometime in the near future.

 

The WTTC also went on to say that the properties available in the Algarve offer massive value to anyone wishing to purchase now, with capital appreciation targeted at 15% per annum over the next five years.

 

If you would like further information about Property Position, Price and Potential in Portugal contact us, we will be glad to help.