Just to add my views on the 'great investment in buy to let debate'
A serious invester will not just jump in an buy a property or properties just because they are seeing adverts and websites screaming out "great investment opertunities here!!"
The serious guys do thier homework and they know where to buy and importantly what to buy, long before everyone starts informing the masses that there are great investments to be had. (look at the Bulgaria mess)
There are good investment opertunities, especially in Central Portugal at the moment, however, to generalise and say that everything is a good investment is somewhat vague. for me a property that can be purchased for say 80,000 euros then rented (let) for say 430 euros per month is a good investment. its a good return in the invested capital and should give you more than you would get in the bank for your cash, (6% or so) on a long term rental basis, less hassle than short term. hopefully better ocupancy too.
A property purchased at say 300,000 euros that the investor/owner wants to rent to say the holliday market, can and in my opinion be harder to get a good return on. This market is hard work, less ocupancy and lots of hassle. although better per week returns than long term let, but lower ocupancy rates.
over all given the return against capital invested it would be a very bad investment. not something that many people would chose to do. better to leave the money in the bank.
there are different types of investment, buying to let is one where someone buys a property and rents it out, hopefully the rental income makes more than the money would elsewhere. while gaining capital growth on the property as a bonus.
an other is someone buys and then does something to the property to increse its value, resells the property and takes a healthy profit and moves on to the next investment.
what seems to be suggested above is that someone buys a property then tries to offer it as a guest house or b and b or a short term rental. while sharing ocupancy with the owner for hollidays etc. this is not an investment in the true sense, its just someone buying a holliday house and supplementing the costs by letting it out when they can. its a different type of business altogether.
sensible buy to let should have little to do with package hollidays or tourists. its about getting a long term tennant in there paying a good rent. and keeping them in there.
anything to do with tourism is not buy to let its a tourist based accommodation business, both are different from an investment point of view.
for me the best investment here in Central Portugal right now would be to buy cheaper properties (under 100,000 euros) make them ready to rent and have medium to long term tennants in there. there is a huge demand for rentals in our area around Tomar, not enough properties for the renters. that would be the smart investment or following the buy do up and sell route.
I am at the moment building a couple of houses one of which i am building especially to rent out, as i know we have a high demand for good quality rentals, so hopefully i will keep it full all year and achieve a good return on my investment
