Eastern Algarve - Olhao Marina

[redfeffer]

Anyone had any experience of purchase at Olhao Marina Village.

Familiar with the site and area, but interested in others opinion on location, price and future prospects

[James Glassbrook]

I must declare my intersest-I am an agent for the developement.
The location is good.
If they build the five star hotel (the only one in the municpality) and the second marina the investment should be very good-medium term-I'm not reccomending any short term investment anywhere because my crystal ball has gone cloudy.
Jim

[Lysos]

The Eastern Algarve has a lot of potential, but it is definiteley (as everywhere) a buyer's market. Whatever your reason for buying (and please don't think holiday lets will cover a mortgag) go for a resale. That way you know exactly what you are getting in terms of facilities, amenities and general views, plus it's much easier to negotiate on the price.

[James Glassbrook]

Surely whether or not holiday lets will cover the mortgage depends on the size of the mortgage ?
Jim

[Lysos]

Yes, Jim, but I'm talking about the 'deals' where agents are pushing 75-80% mortgages to clinch the sale.

However, let's assume the position is reversed and you can afford to input 50-60% cash, is that the best use of your capital, from a pure investment point of view ?. Personal holiday use is a different issue. My partner has a villa in the Eastern Algarve and there is certainly no capital growth there. Ex pat owners are being advised to drop asking prices by at least 10/15% if they want to generate interest, and then to expect offers below that if they are realistic about selling.

[James Glassbrook]

Hi lysos,
I agree with your basic ideas but we don't push mortgages.
Your remark that resale is best is open to question-new properties carry a five year guarrantee and that must be taken into account when considering investment value.There was a great deal of poor quality building in the past as many buyers of "bargains" have discovered.
Jim

[Lysos]

Hi Jim,

Agree about building quality, that's why you should get a survey done. Problem with new build in today's climate is that the developer might go bust and you are left on a building site (e.g. Costa Esuri, just across the river in Spain, built - or not - by Fadesa). Plus it's very easy to promise facilities, but no guarantee they will ever be built. A purchase contract is specifically about the individual property; there are no caveats about the sale being dependent on the provision of swimming pools, tennis courts etc. I've even heard of a development in Spain called 'Golf something', with no golf course !. Also, with a resale there's more room for negotiation on price.

[James Glassbrook]

It is possible for a promissory contract to specify facilities-perhaps the acceptance of such terms would be an indication of the developer's good faith or confidence.
Jim

[Lysos]

Hi again,

James,
Yet to see a contract dependent on promised facilities. Still think the eastern Algarve is a great area, but as I've said before it is very much a buyers' market, as is everywhere. Infinitely preferable, though to places such as Bulgaria, Egypt, Morocco, and - don't make me laugh - Cape Verde !. A significant proportion of our bookings this year (26 weeks, could have been more if we hadn't gone !) came from Portuguese in Lisbon. If all you want is a family holiday in the sun, why travel further ?. An easy 4 hour drive, stopping whenever for the kids, beats the pants off flying. We expect a significant percentage of bookings next year from indigenous families.