Is Portugal a good place for investing now?

[Ann Brown]

Hi all.

I wanted to ask you about an opportunity I heard from a friend to purchase a Villa as a second home investment. It is located in Caldas da Rainha, Portugal. The price is ~150,000€, and the expected return, after Utilities and Taxes, should be around 800€ per month. My friend says that the rent is guaranteed for the first Three years from purchase.
I am very excited, since this deal represents ~8% annual net return rate, but I am also worried of the “PIGS†crisis and what will happen after three years. Do you think that Portugal is a good place for investing now, and is it going to get better soon? Are there better place to put my money in? (Spain, Greece, Germany – maybe?)

Thank you in advance

Ann