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Looking for a better investment return? Try buying a property in Portugal!

Looking for a better investment return? Try buying a property in Portugal!

With the interest rates in the UK being so low at the moment, the best return you can hope to get on your savings is a Bond Scheme with interest fixed at 2.31% for 3 years.
Not much is it? It`s always been a strongly held belief that your money is safe in bricks and mortar, but is safe good enough?
These days, with the right advice and guidance it is possible to not only ensure your money is safe as houses, but also to have said houses bring you in a great profit!

finance

 

The rental potential in the Algarve region of Portugal is huge. The Algarve is a massive draw for tourists, from families looking for a summer holiday destination with loads for the children to do, to golfers coming away for long weekend in the winter to indulge in their favourite activity, so realistically, the potential is there for rental all year round.

 

With 2 bedroom apartments in high rental areas starting from around £120,000 it’s not impossible to achieve and can bring in yields of up to 10%. Over 50,000 properties are now owned by British buyers in the region with a great percentage of these being used for holiday homes and rented out the rest of the time.

 

There are many reasons why the Algarve is the best place to buy your investment property. For example, the buying costs are very low (typically 6% on a cash purchase), and the buying procedure is simple, stable and transparent. Construction density limits are set at 8% for the Algarve meaning the environment (and your views) is protected, and also ensuring there will always be a good market for the resale of your property with growth rates for this year predicted to be around 10%. Taxes on rental income are also lower. Net rental income is currently taxed at a flat rate of 9%, taxable income being defined as gross rent, less maintenance costs, repairs and other related expenses such as insurance and council tax. Ongoing costs such as council tax, utility bills and community fees are also much cheaper in the Algarve than in other areas and countries.

 

But what will keep the tourists coming back year after year to ensure your investment is long term? Well, quite simply, the Algarve is the best holiday destination in Europe! With the lowest crime rate in Europe, and short flight times from all major UK airports, it’s safe and accessible. There is also the climate. The Algarve achieves over 300 days of sunshine per year and has a climate comparable with California, it has the highest concentration of blue flag beaches and golf courses per capita in Europe and is steeped in history and culture. As well as beaches the hinterland is beautiful, and green all year round and there is a great amount of UNESCO protected nature reserve and park land. There are even flamingos and dolphins!

 

Don’t let your money stagnate in a non profitable bank or savings scheme, invest in Portugal. Great returns and a beautiful holiday home in the sun!

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