Friday, March 5, 2021
Dear Your Overseas Dream Home Reader,
My senior researcher, Margaret Summerfield is on the next leg of her journey.
For the past few months, she’s been touring her way through Europe, test driving promising destinations and searching for real estate deals.
I’ve been handing this e-letter over to her each week so she can share her updates…where she’s going and what she’s found.
She’s now reached the shores of southern France, navigating her way though the glamour and splendor of the Cote d’Azur. I’ll be sharing her updates very soon.
Today, however, Margaret is giving her final take away from her journey through Portugal, comparing her two favorite beach towns…
Read on…
Wishing you good real estate investing,
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Ronan McMahon, Real Estate Trend Alert
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How Do These Two Beach Destinations in Portugal Stack Up?
By Margaret Summerfield
I’m on the road, seeking a new base in southern Europe. It’s a weird journey—complicated by travel restrictions, cancelled flights, and ever-changing rules.
The New Year threw a spanner in the works with Brexit. I’m Irish, and Ireland is still part of the European Union (EU). So, I can come and go as I please, travel and work around Europe. As of January 1st, however, my English husband is classed as a non-EU citizen. Like Americans and Canadians, he is now restricted to a maximum 90 days out of every 180 in the Schengen Zone. Once we pick a place to base ourselves, he has rights as the partner of an EU citizen. But the idea of being a perpetual traveler around Europe is out the window.
Where we go at the end of March is much more limited. For now, the journey continues…with a comparison of Cascais and Lagos.
They’re two seaside locations in Portugal that on the surface look similar. They both have marinas, beaches, walking trails. But in some ways, they’re polar opposites.
Size
With a population of 200,000 or so, Cascais is a small city. It’s a half-hour drive from Lisbon, Portugal’s capital city, so it’s a popular weekend and second-home getaway with folks from Lisbon.
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Lagos on the other hand is much smaller—30,000 population or so at the last count in 2011. It feels lower density than Cascais, more relaxed, more easygoing. Cascais has a busy city feel and gets even busier at the weekends. I’m declaring Lagos the winner here because I prefer the more relaxed vibe it offers.
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Style
Cascais is cosmopolitan, sophisticated, chic. The marina is packed with expensive boats and pleasure craft. You see Ferraris, Lamborghinis, McLarens, and Maseratis driving around here…as well as vintage cars and motorcycles. The marina hosts events like the Americas Cup. It’s a popular spot for brunch or lunch, with Italian and Portuguese food, sushi, and a café if you just want a coffee and pastry.
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There’s a museum neighborhood, home to a couple of the historic homes I wrote about last week. And, a Ruta de Arquitectura that leads you around the city to its notable buildings. That’s something that’s lacking in Lagos.
When I called a Latin friend and mentioned I was in Cascais, she was immediately impressed, and confessed that she’d love to live there herself. Its glamour is very appealing to a certain set of buyers and renters.
Lagos is very different. You see the odd Ferrari, and there are some big luxury yachts in the marina…but nothing on the scale of Cascais. And, it attracts a very different set—lots of perpetual travelers, some in scruffy trailers…retirees, surfers, and sunseekers. It’s much more low-key than Cascais.
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There are some great walking, cycling, and running trails around Lagos, along clifftops and bluffs, and wild, untamed beaches. Cascais too has good routes but they’re much more developed, and you’ll come across more people using them. I went to Ponta de Piedade lighthouse and nature reserve in Lagos and met a handful of people on a two-hour walk. That never happened in Cascais.
When it comes to dining, both Cascais and Lagos have a good range of options, along with nice cafés and pastry shops. Lagos has fewer blingy clothing and jewelry stores than Cascais…but some nice local options instead. And I much preferred the supermarkets in Lagos. They were all in walking distance of where I stayed, and stocked lots of imported goodies (Irish butter, curry pastes, English cheddar, Swiss chocolate) alongside local products.
At the start of this trip, I would have told you that I’m a city girl…needing access to culture and amenities. But despite its lack of cultural offerings, I’m voting for Lagos again, as the quality of life there is so fantastic.
Airport Access
Lagos is two hours from Faro airport, with lots of flight connections (at very low cost) across Europe. Cascais is a half hour from Lisbon airport, with a broader global reach. But, Lagos is less than three hours’ drive from Lisbon airport (or a short connecting flight). Cascais just inches ahead here.
International Destination
This one surprised me, as I thought that proximity to Lisbon would mean a strong international presence in Cascais. But it’s the Algarve…which includes Lagos…that has more of an international influence. There are foreign language online newspapers…supermarkets stocking international brands…many expat groups. And lots of Dutch, Belgians, French, Swedish, Austrian, German, Irish, North American, and British tourists and part-time residents. If this is important to you, then Lagos ticks this box.
Real Estate Prices
This is where Lagos really comes into its own. The top end of the market—luxury real estate in prime locations—runs around €3,000 per square meter ($335 per square foot). You can get a spacious two-bed condo, for example, with a nice terrace, on a budget of €300,000 to €400,000 ($361,020 to $481,360).
Something similar in Cascais could cost close to double the price.
That’s a huge difference that has a significant impact on your real estate budget.
If you’re committed to Cascais, and want a location on the doorstep of Lisbon, you’ll pay that premium. But if you’re looking for more bang for your real estate buck, Lagos wins out.
Overall, Lagos is the clear winner. It’s a place I’d happily go back to—and one that is now top of my shortlist of potential bases. But how will it fare against rivals in the French Riviera?
Stay tuned…
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Your Comments and Questions
Susanne says: Hi Ronan! I am somewhat new to RETA but have subscribed to IL for years. We have lived in Belize and Costa Rica, but now have our sights on Europe, particularly Portugal or Italy. Last year’s Portugal trip we had scheduled in April had to be cancelled, but we are anxious to move ahead with plans. We love the deals you have shown us so far, but they are all pre-construction. Will you be bringing any finished homes or condos to our attention? Is it safe to buy right now without the ability to see the property and neighborhood first-hand, especially if it is primarily for our personal use and not a rental? What are the logistics of buying “sight unseen” or getting bank financing without being there in person? These nitty gritty details roll around our heads, awaiting satisfying answers. Ronan says: Hi Susanne, In RETA we get these huge discounts thanks to our group buying power. Our group buying power doesn’t have value for a one-off property sale. It does to a new preconstruction project. That’s one of the big reasons so many of our best deals are pre-construction. But I know many of our fellow members aren’t in this for the money alone—me included. That’s why we added the new supplement to RETA called Dream Home Digest. Our first issue dropped just a couple of weeks ago and featured properties from some of the best value regions of Ireland, along with a helpful guide for buying auction properties, and one of the best profit plays I see in Ireland right now. The next issue will be from the San Miguel de Allende area of Mexico. Expect more of this to come in RETA. For a resale property in particular, you should put boots on the ground and see it for yourself. Generally, all the admin and finance can be done remotely. I’ve closed on a couple of properties in Portugal this way recently. All the admin was handled remotely but I did leave a power of attorney with my lawyer there. I’d use this time to get all your ducks in a row. Hopefully, there’s light at the end of the tunnel and you will be able to safely travel soon.
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