STR or nothing - Portugal

[Juan Correia]

Hi everyone, I'm trying to get some people to understand the dynamics of small countries, as is the case of Portugal.

Ok, sure, we are part of Europe, but the honest truth is that a lot of things are just endemic to the reality of the local country and, inside the country, to the reality of the region.

To begin, we have to understand that Portugal is about 1000 miles x 300 miles in terms of territory what makes it easy to get around but, first problem, in small countries, eveything seems "far away".

Also, because we are small, the notion of "country" is different, in the perspective of those living and investing here. People are more concerned with their own small region that with the logic of a nation, in terms of nation wide needs.

Real state is not strange to this reality, and the prof is that we have incredibly different markets, even inside the cities.

The Algarve region (the south end of the country) is a great example. We have locations, whitin a few miles, that very from 1000€ (around 1.2K USD) per square meter in terms of costs, and 3, 4 and even 5 times that.

Also, in terms of rents, things are very distint even inside the same city. I know that this is no different, depending on the disctricts or the class of the neighbourhoods, however, when the total population of a region with around 300x100 miles is around 440K people, its hard to understand these variations.

Also, because the place is small, we have investors and buyers coming from everywhere to buy everywhere, but with the huge differences in income between the people living in the big cities (Lisbon, Porto) and the rest of the population, its EXTREMELY hard to find deals.

Also, i think this happened worldwide, construction prices spiked and, being small and not having that much competition, it makes it very hard to get competitive quotes... so even being small, there's a shortage of homes...

Home owning is very encouraged here in Portugal, rentals are not that popular. Normally, those who rent are either single people with temporary jobs (nurse, professor, etc.) or tourists (mostly STR), but I'm trying to invest in LTR... However, with the low wages is not easy to have good returns. The avarage here is a 0.5% rule, or to be more precise, you get around 600-700 euros for a 120K-150k apartment...

So, please, let me know how things are going on your country or region. Those who are looking to invest here, should look at flips or STR, otherwise... maybe commercial.

let me know your thoughts

Hi everyone, I'm trying to get some people to understand the dynamics of small countries, as is the case of Portugal. 

Ok, sure, we are part of Europe, but the honest truth is that a lot of things are just endemic to the reality of the local country and, inside the country, to the reality of the region.

To begin, we have to understand that Portugal is about 1000 miles x 300 miles in terms of territory what makes it easy to get around but, first problem, in small countries, eveything seems "far away".

Also, because we are small, the notion of "country" is different, in the perspective of those living and investing here. People are more concerned with their own small region that with the logic of a nation, in terms of nation wide needs. 

Real state is not strange to this reality, and the prof is that we have incredibly different markets, even inside the cities.

The Algarve region (the south end of the country) is a great example. We have locations, whitin a few miles, that very from 1000€ (around 1.2K USD) per square meter in terms of costs, and 3, 4 and even 5 times that.

Also, in terms of rents, things are very distint even inside the same city. I know that this is no different, depending on the disctricts or the class of the neighbourhoods, however, when the total population of a region with around 300x100 miles is around 440K people, its hard to understand these variations.

Also, because the place is small, we have investors and buyers coming from everywhere to buy everywhere, but with the huge differences in income between the people living in the big cities (Lisbon, Porto) and the rest of the population, its EXTREMELY hard to find deals.

Also, i think this happened worldwide, construction prices spiked and, being small and not having that much competition, it makes it very hard to get competitive quotes... so even being small, there's a shortage of homes...

Home owning is very encouraged here in Portugal, rentals are not that popular. Normally, those who rent are either single people with temporary jobs (nurse, professor, etc.) or tourists (mostly STR), but I'm trying to invest in LTR... However, with the low wages is not easy to have good returns. The avarage here is a 0.5% rule, or to be more precise, you get around 600-700 euros for a 120K-150k apartment...

So, please, let me know how things are going on your country or region. Those who are looking to invest here, should look at flips or STR, otherwise... maybe commercial.

let me know your thoughts