It’s well known that buying a property at auction can save you a fortune, this goes for property in Portugal too. But with more and more “savvy” buyers looking for a bargain property, or a distressed sale, the competition is fierce.
Record Property Price results
According to to some in the know prices are regularly exceeding, by some margin, the guide prices due to bidding wars from those looking for cheap property.
Graham Barton who features on BBC One’s Homes under the Hammer, said “In a recession these results are amazing. They are the biggest margins over guide I can remember in30 years in the industry”
In an article from www.themovechannel.com, they quote some staggering examples of this.
- A 2 bedroom cottage in Truro in Cornwall for 109% above its guide price of £60,000 in September
- A Grade II listed freehold terrace in Kensington, London for £2.52 million, an amazing 129% over its lower limit of £1.1million to £1.25million guide price.
- Another flat in Kensington went for £615,000, 146% over the £250,000 lower limit.
Perhaps one of the most poignant messages in all this is a quote from Countrywide, Britain’s largest estate agent “The sales most exceeding expectations are in locations “renowned for holding their value or in towns and cities undergoing redevelopment”.
Property in Portugal
Although Portugal property is not the same as the UK, there are many similarities, and its no secret that the UK has been the source of a incredibly high % of sales throughout the country over recent years.
Cheap property in Portugal is becoming slightly harder to find for precisely the same reason as in the UK. Strong areas, such as Albufeira, Vilamoura, Quinta, Vale do Lobo hold their prices well.
A lot of the “bargains” have been bought up by professional investors who have predicted a change in the market woulnt take too long and snapped them up, with the ideal of selling them on in a year or two’s time.
We have sold around 80 properties over the last 6 months, all priced under the valuations by up to 40%, but now it is becoming harder to find. As developers are now starting to increase their prices again as there is more interest.
The Time to Buy is …….
You guessed it, NOW. With the market making an, albeit, small resurgence, confidences are coming back interest rates are low, and thousands of people have been holding off until they see a sign its back. When this happens, there will be huge competition for bargains, and as in the UK the bargains become bidding wars forcing the price up.
So, if you are looking to buy, have a look now. Don’t expect a bargain, but look for one, don’t be sucked into hugely discounted property being advertised everywhere, some of it isnt that much of a bargain!
And of course remember the saying “It’s only a bargain if you really wanted it”
For any information on buying in Portugal, feel free to drop us a line anytime.