Investing in Monte Santo

[Jumbo1]

If you email us at, boeman55 at yahoo dot co dot uk (I've written it like that so the post doesn't get removed, hopefully), we will be happy to fill you in with regards to what we have done about furniture.

[MJS]

As already indicated in one of the previous posts, Mr Azy Leite is the Condominium and Owner Services Manager for Imocom's Residential Tourism resorts and can clarify matters related to the Rental Contract, Owner usage, Services, the Owners Club and the Condominium. He can be contacted at: azy (dot) leite (at) imocom-grupo (dot) com or alternatively at 00 351 289 304 900.

Feel free to contact him to schedule an appointment locally in person.

[Lysos]

Joanne,

Read my recent post about Portugal. There is much better value to be had elsewhere, in the Eastern algarve, close to the Spanish border. You will get far more property for your money, the area is developing, with new golf courses and facilities, the area appeals to families. There are English agents who will advertise your property, manage changeovers and everything else you need. I am not an agent, but recently spent a week in my friend's villa there; she lets it out in July & August (always full) and the returns cover the mortgage and all other outgoings for the year.Do some basic research on rental/demand before you invest anywhere,. These new complexes will promise you anything to get you to sign on the dotted line. If you buy a resale property you can ask to see the 'books' so you get an idea of real returns, not just projected returns, which, unless the complex is contracted to a holiday company are nothing more than wild, extemely optimistic guesses.

[manor park]

Lysos

Very interested to read your post, I wonder where you were as I have just bought in eastern Algarve and think that the whole area from Faro to Spain will grow a lot in the next few years, it also benefits from some of the best climate.

MP

[Lysos]

MP,

Near the small town of Vila Nova de Cacela, and two minutes from the new golf course of Monte Rey.

My view is that if you are letting your own individual property, you can customise it to make it unique to attract clients (if, indeed that is your aim). On a large complex, you are competing with hundreds of other properties; in addition, as I said earlier, the rental returns 'promised' to buyers in Monte Santo are totally unachievable, as basic research would indicate. If the rental is 'guaranteed' then it is invariably factored into the selling price. I dread to think what the service charges will be !.

[Jumbo1]

Lysos, I believe that there is not a lot wrong with the advice you are giving. The one factor you are ignoring is that Monte Santo is being built as a luxury resort with finishes to the highest standards. We looked at property in France, Spain and the Florida (and considered several other countries as well) before choosing to buy in Portugal. We then looked at a good few properties and developments before we choose Monte Santo. It, quite simply, had a superior standard of finish (in the show house and promised for the rest) to anything else we had seen. That, combined with the facilities and the location, made it our choice. Admittedly, rental return was not our first priority, but I will be surprised if it does not eventually let at a premium.

You do appear to be ignoring the fact that it is not just an average bunch of condos that we are talking about here. It was built and marketed as a 5 star (Hilton) hotel type resort. It is still going to be run as such, in the main. A maximum of 30% of owners have the option to deal privately from the get go, as we have chosen to do. So I don't think you are comparing like with like.

However from a purely investment perspective, I have to say that I find your statement that " I am not an agent, but recently spent a week in my friend's villa there; she lets it out in July & August (always full) and the returns cover the mortgage and all other outgoings for the year” very impressive and certainly worth investigating by anybody still searching.
BTW, I asked what the service charges were to be when I was looking at the property and was told a max. of 220 euros/mth. So that is what I am expecting and while not exactly (by a long shot) inexpensive I figured it was bearable for the facilities on offer.

I posted this last night “We were told that the date for the (deed signing?) party and the handing over date had been firmed up for the 15th of June and the 1st of July.”

I spoke to the agent from (3 letters) who sold us the place today and also my solicitor. I did not take enough notice of what precisely I was told was happening on each of those dates, as I was mainly interested in when the property was going to be available. After today’s conversations it appears that any "party event" is more likely to be for dignitaries and such like to celebrate the completion of the venture and without any of the new owners necessarily being invited.

Also (from my solicitor), even if building and landscaping were all finished and the habitation license applied for by the middle of May, it is quite probable that the license will not be issued until well into July (in his opinion).

So I am not going to book any flights just yet!

[raywbirch]

We have just purchase a propery T2 at Monte Santo Does anybody know the details of the rental package? prices etc.How easy is it to rent out yourselves?Maid service?handing over keys?Maintenance?
Any info
Ray

[Lysos]

Jumbo!,

Thank you for your considered and well balanced response. If buying for your own use, and 5 star 'luxury' is what you want, then you are probably not concerned that you are paying over the odds (in my opinion).

However, my posting was aimed at those buyers for whom the projected (wild guesses, and in my belief, unachievable) rental returns seem to be their motivation.

Most couples and families want to spend the majority of their holiday outdoors, enjoying the weather. As long as the living quarters are clean and modern they will be happy; after all they will only be used for sleeping, washing and occasional cooking; granite worktops and plasma screens are unnecessary.

You can only swim in one pool at a time (and how much nicer and '5 star' to have your own private pool) and eat in one restaurant at a time. Being able to enjoy a barbecue on your patio, with freshly picked lemon in your g & t, whilst still being able to keep a weather eye on children in the pool will appeal to more potential renters than a flat on a complex.

(We'll be there again two weeks tonight, sitting in Pedro's restaurant, telling ourselves not to pig out on the wonderful bread, olives, sardine pate & cheese or we won't be able to eat that huge casserole of prawns and haricot beans - never succeeded yet !. Bottle of water, and a bottle of very palatable house red, £20).

[Roy Burns]

Originally Posted by scroft

Interesting to find other Monte Santo investors. We have a T2 apartment and a 2 bed townhouse. It will be interesting to compare notes as we move towards completion. I'm interested in who will end up marketing the rentals of the properties in the end. When we bought, the Hilton group's name was being bandied about but I don't know if anything has been formed up yet.

Brian/Janet

Hello,

We are new to the forum and are also owners of a T2. We called into the site on 6th March and had a good look around. All the units are now painted and the hard landscaping, retaining walls, Road paving, pool construction are all under way with plenty of activity on site. The town houses look nearer completion than the rest. Our apartment has all the floors finished and the marble in the bathrooms is complete and the internal painting is underway.
Nadine in the office said that we will all be invited to an opening party around the middle of June but this depends on the issue of the completion licence from the local authority. They are hoping to rent out from 1st July.

Hope this is useful.

Regards Roy & Jean

[bones]

I am looking to get a mortgage on a T2 property in Monte Santo.Does anyone know if a bank has valued any property there and what value?