After few years seeing the prices of properties going up in Portugal, seems like things may change soon. As I keep looking for a property for myself (as you all know from my previous post that Ive been renting since I moved to Portugal), I believe is better to pay a mortgage rather than the rent. I have seen some action on the property prices this week. Coronavirus may have some influence on this, as the population is not sure what the future holds, if another financial crisis will happen and how it will affect the world. .
In my last post I spoke a bit about the short-term rentals now offering their properties for the next month or two, for the price they used to charge weekly. Not far from this reality, sellers are also dropping their prices it seems. Real Estate Agencies are sending mailers to their database to see if anyone wants to reduce the price of their property so they can do a “online sale” and try to keep increase the business and also help their clients to sell their properties. Ive seen properties once announced at €195,000 now down to €159,900. (thats 18% down, its massive!!), also another one from €175,000 now at €156,000 (almost 9% off).
Im watching the prices and waiting for a bargain, maybe soon I will own a property by the Portuguese sea, who knows?! At the same time, I keep watching the markets as I will need so exchange some money for the deposit. The volatility that we are seeing at the moment can also help (or not) when exchange money, thats why is good to have a broker in place. To keep you updated with the markets and any spikes in your favor! If I can make more for my money, why not?!
Now we all have some time to watch how the economy is doing and all. Some people are more interested than others, and for those who want a good deal but are not into up to speed with the markets, there is always a solution, get yourself a good real estate agent and a great currency exchange provider to get yourself started!
Today I would like to share with you a little bit of what Ive seen online lately. As Ive mention before, I moved to Portugal in December 2017 and during the first few months here it was really hard to find a property to rent – long term.
I spent hours & hours looking on Facebook groups and renting related websites. It was hard to find a property at that time, as most of the properties were set up for Airbnb or something similar. The owners can make a pretty decent amount of money renting their properties to tourists, who tend to pay higher rates than us locals.
After weeks and weeks trying to find a property, I have found one that would work for me, but if you think I got it, you are wrong! The owners asked you for one month rent & one month deposit, which was fine. Then they asked for a guarantor, and thats when things went sideways. As I moved here by myself and didnt know anyone in the area it was impossible for me to provide a guarantor. I could probably give another month rent but that was about it. And unfortunately, that wasnt enough.
As I dont give up easily I kept asking people at work about rooms or properties to rent, as the short-term rent was too expensive for me. Luckily one of the guys that worked with me mentioned that a friend had an empty apartment and he would speak with her about me and guess what?? I got a place to call home!!
This week Ive started to see several posts on Facebook of people wanting to rent their properties mid to long term, as due to COVID-19 they’ve had their booking cancelled, now instead of seeing posts announcing weekly prices at €500 (for a 2 bedroom apartment), we have now started to see owners advertising renting for April & May (initially) for €500/€600 per month. What a difference!! They probably believe that in June things will be back to normal and they will probably be able to rent their properties weekly again. Well, some still have to pay mortgages and this is a way to keep their financial commitments up to date. Lets wait and see what the future holds for us! Hoping for some good news soon!!
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