Wednesday, February 17, 2021
Dear Roving Real Estate Investor Reader,
Today, I’m kicking off our first-ever virtual Members-Only Scouting Trip (MOST) to Portugal’s Algarve.
This is a RETA-only event…
If you’re a member, watch your Alerts. I’ll be sending you a link to join the MOST in a matter of hours.
If you’re not a RETA member, hold tight. I’m bringing you a chance to join our MOST and learn more about our Algarve deals—including how to get a discount of close to $42,000—later this week.
More on that in a moment…
First, let me explain what you can expect to get in this event…
In this virtual MOST, we’re taking a look at the hottest opportunities in Europe’s most popular beach destination.
The Algarve is what I call an “internationalized destination,” a place so universally attractive that it draws people from all over the world. A place where—no matter what happens—people always come.
It has perfect weather, amazing golden-sand beaches and world-class golf. The cost of living is low, the food is great, it’s safe, peaceful, and easy to get to.
And it’s a place where we can make money, even when travel is limited…
For instance, in Lagos, despite the pandemic and global lockdown, rentals are still doing well. My contact on the ground tells me that in 2020 the average rental there rented for around 35 weeks and some property owners were pulling in gross yields of 7%. That’s in a bad year. In a normal year—when there’s no pandemic—you could expect to rent for around 40 weeks.
Lagos is my favorite beach town on the entire coast. It’s a place that has it all. Amazing restaurants, artsy boutiques, ornate cathedrals, old fortifications, and beaches that rival those of Southern California.
And it’s where RETA members now have the opportunity to lock down a luxury two-bed condo with a discount of nearly $42,000.
Mortgages of up to 80% are available, with rates less than 2%. And I figure we can see 8% annual appreciation and a 10% gross.
I’m also bringing members details of bank fire-sale opportunities…luxury condos in one of the most prestigious communities in the Algarve.
During the virtual MOST, my contact will take you on a walkthrough of one of these condos.
As you might recall, when I scouted Portugal last October, I ended up locking one down for €410,000. That’s with no money down and a mortgage of 1.7%…
The other day I found a similar condo in this community listing for €830,000.
These are grossly undervalued by the bank, and I figure there are more available homes in this community than the bankers let on—with the option to get 100% financing and sub 2% interest rates.
The play here is to polish up the condo, furnish it nicely, and then rent for one full year, creating an income stream and increasing the value of the property. (These are super blue-chip condos so you can pull in €48,000 to €55,000 a year in rental income.) Finally, you can sell, figuring on gains of as much as €250,000.
We’ll also be looking at deals in the Eastern Algarve, where we can own for sub €150,000.
Historically, the eastern Algarve has been overlooked, despite having some of Europe’s finest beaches, lots of protected land…and a more traditional Portuguese feel. But that’s likely to change as Portugal grows as a place for mobile people, international investors, and foreign retirees…
The deals I’m focused on are in a more relaxed and authentic destination than the more established tourist locales in the west…but still only 30 minutes from Faro’s international airport…
Using the miracle of leverage, you could lock down a condo in the pleasant waterfront town here and be into the deal for just €29,800 plus buying costs, which are pretty low in Portugal. With bank finance of 80% LTV, at say a 1.5% rate, your repayments are around €575 a month.
If you’re a RETA member, watch your inbox today at 1 p.m. ET for a link to this virtual Members-Only Scouting Trip (MOST).
If you’re not a member, stay tuned…
Tomorrow, I’m opening up a special trial offer, giving you access to the MOST, all our incredible deals on the Algarve…and much more.
Wishing you good real estate investing,
Ronan McMahon, Real Estate Trend Alert
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Your Comments and Questions
Linda says: Hi Ronan, I was interested in your comment regarding owning your own car in Cabo. From your reports I realize you go back and forth to Cabo. Do you have any problems maintaining a vehicle when you may not be there for a length of time?
I will be in the position of considering some kind of transportation in Portugal and also in Mexico in the nearish future.
Ronan says: Hi Linda. My in-laws live here in Cabo. So, when we leave, they will occasionally take the car for a drive to make sure everything keeps ticking over. Other folks here, who don’t have this luxury, rely on neighbors to help. Generally, neighbors are very helpful as everyone is in the same boat, trying to juggle stuff like this while coming and going.
In Ireland I have a car my parents help with. When in Portugal I rent a car. Off season, which is when I’m there, it’s incredibly inexpensive. They try and catch you with insurance but the hack with this is to buy an annual insurance policy separately…don’t buy it from the car rental company.