Summer sunshine and the usual mayhem of tourists!

Mid July and with temperatures soaring to over 40 degrees the beaches and pools of the Algarve are now packed with Europe’s holiday makers looking for their summer sun tan!

And with over 50 blue flag beaches the Algarve is definitely one of the best places in the world to do it. With the sea temperature a cool refreshing 25 degrees, its a perfect mix to enjoy the stunning sandy beaches.

Many holiday makers make time to view a few properties on the Algarve whilst out and about to get a feel for the place from a more long term view, if you have a free morning or afternoon then give one of our team a call on +351 843 308 8511,and we can have a chat and show you around for a few hours. Or just drop us an email and we’ll call you back.

No Money Down deals … The reality.

Press Release  *  Press Release  *  Press Release

Date of Issue: 12th July 2010

Infinito Real warns potential buyers on the reality of high loan-to-value mortgages

Infinito Real, a Portugal based group of property investors, has seen a growing number of clients searching for mortgage deals that involve putting little or no money down in order to purchase a property.  Although these types of deals have always been difficult to obtain, Stephen Anderson, Managing Director of Infinito Real, confirms that it has been possible and could potentially still be, for now. Looking at the best deals to be had now, Stephen offers his advice on potential changes in the Portuguese mortgage system and costings in the near future.

The premise behind 100 percent financed mortgages is simple, the property is valued at 20% or more above the purchase price allowing an 80% loan-to-value (LTV) mortgage to be taken out,  thereby eliminating any need for the buyer to part with any money at all, other than buying costs. According to Anderson, the reason these deals have been difficult to obtain is not because of the property itself but the actual client purchasing.

He comments: “Typically these high LTV mortgages have been constrained to borrowers that have, and can prove, a high income. For example to obtain a €200,000 mortgage on a 100% finance deal, you should look to be able to prove around €3,000 NET income per month (between both applicants if jointly purchased), otherwise the banks will more than likely decline the application. Currently, if you can meet this criteria then there is still a good chance of being able to still purchase in this manner but only for the time being.”

However, Anderson does warn that banks are becoming more cautious and much more stringent with their criteria for lending due to rising interest rates. “On high LTV mortgages, the interest rate on offer is significantly higher than that of a 70%, or even 75% mortgage, and the bank has all the risk. Buyers can walk away without any financial loss and the banks are stuck with the property. We have seen this happen in huge numbers in Spain and it has cost the banking institutes heavily. We saw an increase in rates at the start of June and with predicted increases due shortly lending could become even tighter, which is no bad thing as there are still some great deals to be had.”

Anderson continues: “For the qualifying buyer there are still some fantastic mortgage products available. With rises that lie ahead, the chances of looking in a sub 3% mortgage rate will be out of reach by the end of next year. Therefore, I would advise anyone who can buy now to do so as this time next year it would be prudent to expect rates of around 5% again. Interest rates are fixed for the term of the mortgage, so if you can get a low rate now it will remain so for the lifetime of the loan, the only increases will come from the Euribor which will not be heavily increased for some time to come. Currently the best rates available for 80% LTV based on valuation (allowing for 100% of purchase price) is around 4% (3% spread + Euribor, currently 0.7%), which is almost double what it was at the start of the year. Compare that with the rate for a 70% or 75% LTV mortgage at 2.6% (1.9% spread + Euribor) and there is a large difference. Also, the options available for the lower LTV % are much more cost effective and less troublesome to acquire.”

Finally, Anderson advises that to be assured of getting the property you’re looking for, you should expect to have to find at least 20% of the purchasing price, if you have a good financial history demonstrated over the last six months bank statements.

ENDS

Latest Press Release

Date of Issue:  12th May 2010

Infinito Real reports a revitalisation of the Portugal property market but popularity in the areas and types of property being purchased have changed direction

Infinito Real, a Portugal based group of property investors, have released their latest statistics showing that, whilst Portugal has realised a revitalisation of the property market in general with average sales prices for the first quarter of 2010 increasing by 49% year on year, popularity in the areas and types of property being purchased have changed direction.

The latest report from the company demonstrates that, during 2009, the split in popularity in areas for purchase was:  55% East Algarve, 22% Central Algarve, 11% Western Algarve, 11% Silver Coast.  However, for the first quarter of 2010, there has been a swing in popularity with 50% of purchasers choosing Western Algarve, 28% Central Algarve, 14% Eastern Algarve and 7% Silver Coast.

It could be argued that areas such as Carveoiro, Porches, Alvor and Logos have always been popular and are frequented by tourists year after year, which brings a level of comfort to buyers as they know the area is well liked.  However, Stephen Anderson, Managing Director of Infinito Real believes there are further reasons commenting, “the more developed and touristic west coast offers a safer rental potential and the addition of the Formula 1 track and, potentially, a new airport in Portimao, has helped swing clients in this direction.  In addition, much of the current available property in the Eastern Algarve is not yet finished and the smaller areas have been heavily developed without the infrastructure to match.”

Whilst Infinito Real report that clients are happy to spend more for larger or better quality properties, with villa sales becoming more regular whilst the market is stable and the prices remain competitive, the highly priced Vilamoura properties are not currently attracting buyers, with little movement on prices.  “The same properties have been for sale for quite some time now and we would recommend only purchasing re-sales in this area at present” advises Stephen Anderson.  “Most developers are totally unrealistic with their pricing.  For example, a new build in this area would commonly market at between €300,000 and up to €500,000 for a two bedroom apartment whereas a good two bedroom re-sale apartment can be found for around €200,000.  If you are looking to buy in this area, be aware of what else is for sale in the development.  If there are lots of units available negotiate a good price or walk away – it’s as simple as that.”

ENDS

For further information, please contact:

Stephen Anderson, Managing Director, Infinito Real on +351 289 313 325, www.portugalvillasandapartments.net

Helen Evison, Infinito Real PR on 01276 62201 / 07979537335

Editors Notes

Infinito Real, a Portugal based company, is a group of property investors that over the years have formed a partnership to offer services to the consumer.  The idea is that the company provides the help and advice on mortgages and taxation, interior design and legal and contractual advice that was not available when they bought their first properties.

Complying with the recently introduced legislation in Portugal regarding real estate companies, Infinito Real’s licences are all up to date and their partnership network is made up only of registered companies. A key benefit to dealing with a real estate agent who complies with this legal requirement provides indemnity insurance for you as a consumer should anything unexpected happen.

Stunning 3 bed villa with sea views in Tavira center : A bargain at €300,000!

Property Information

A nice property for sale in Portugal Tavira, with lots of living space and fantastic sea views. Centrally located within easy walking distance to all the attractions in the area, including the bars restaurants transportation links etc… All this with the peaceful tranquillity of a quiet street. Would be an ideal second home for somewhere to rest and relax and enjoying everything the Algarve has to offer, with plenty of extra space for guests to visit for long or short stays. A great family home with modern finishes throughout, and now at a fantastic price as well!

To make an appointment to view this property contact us now!!

Date of Issue:  March 2010

Infinito Real, a Portugal based company, believe the recession has brought about a market where the “rich get richer”

Infinito Real, a Portugal based company started and run by property investors, have seen a vast change in the type of client they are getting in comparison to last year and believe this “high earning, big investment” trend will continue to grow up to the end of the year.  So have continuing low interest rates and reduced property prices only benefited a certain clientele?

Last year, the majority of customers for Infinito Real were what one would deem as “lifestyle” clients – someone who has saved to purchase a property for themselves to use for a prolonged period of time, or for a permanent move. However, the demographic has changed rapidly over the last year and 2010 has brought about a high influx of new clients who are in a much higher income bracket.  With more disposable funds, these clients are looking for investment properties that can double as holiday homes.

As the climate continues to stabilise those who had not been looking into property investment before realise the time to capitalise is now. With mortgage rates particularly favourable for those clients with wealth, and therefore low risk, and the prestige of owning a property in a luxury area such as the Algarve, the appeal is much higher than leaving it in the bank and perhaps making a 3% return.

Stephen Anderson, Managing Director of Infinito Real comments, “The ‘boom’ of 2007 was a time of property madness, where there was a frenzy to buy as much as possible which ultimately left many in a financial nightmare. In those days the idea of buying abroad was still relatively new and the implications not always fully understood. Nowadays buyers are much more savvy, taking elements such as location and type of property into consideration. Generally speaking the two bedroom, two bathroom apartment is the bench mark for the majority of buyers, with at least a swimming pool on site and only a short drive to the beach. These types of properties in high yield rental areas are extremely popular, which when coupled with a large discount can bring in rental returns in excess of 10% per annum.”

The key for those “lifestyle” buyers who are still looking to fulfil a lifetime ambition of owning a property in Portugal is to remember the benefits of a Portuguese mortgage are still very appealing.  Stephen continues “Generally my advice is, if you are interested in a property discuss the types of loans available and the associated repayments with a mortgage brokerage. Set yourself a monthly budget that you are comfortable with and see how much you can borrow without over stretching.  Certain areas will yield a better return if you “need” to make an income from the property so look for a bargain that will put you in a strong position to sell at a good price in the future, lowering the risk of becoming stuck with a property you can’t sell on.”

On the recent Forbes rich list, the average increase across the top earners in the world has gone up by $500 million, the time to invest is when the market hits the bottom, and right now is that time!

Infinito Real Press Release February 2010.

Figures from Infinito Real, a Portugal based company, see enquiries double from January 2009 to January 2010

Infinito Real, a Portugal based company started and run by property investors, have had a busy start to 2010.  Their volume of enquiries has increased on average 17% month on month from October 2009 to January 2010 and January enquiries hit a high of just over 500, compared to half of that in 2009.

The appeal of Portugal as a destination to invest or buy a holiday home has always been popular without becoming overcrowded like neighbouring Spain. With the end of the recession in sight, owing to the UK market showing steady increases for the last 7 months, the Portuguese property market has seen a shift in buyer attitude with investors wanting to make a purchase which they like and not just for profit purposes.  Stephen Anderson, Managing Director of Infinito Real believes the recent “boom” in business to the Portuguese property market can be attributed to a number of factors.

Stephen comments “The start of 2010 has seen more positive press coverage for the property industry as a whole and with less focus on the global recession, confidence to invest has started to increase.  We have seen that a number of buyers who postponed their plans in 2009 are now ready to move which has created a backlog of buyers wanting to move as soon as possible. The small increase in the exchange rate from £1 – €1 throughout most of 2009, up to £1 – €1.15 has provided a 15% “discount” from previous months and has had a profound effect.”

A further notable change for Infinito Real has been the vast reduction in the number of distressed sales, a forced sale with a discount of at least 20% from the original price. Even though distressed sales have always been available, the economic downturn saw a considerable increase of people in financial difficulty including both individual sellers and also larger developers.

Stephen continues “Ironically, 2009 was the best possible time to buy a property in Portugal and the worst time to sell.  At the peak of the recession we had in the region of 150 “distressed sale” properties and with high appeal to the majority of investors they sold very quickly.  We currently have less than 10 and with the restabilising of the market place I think it is unlikely we will see any further bouts of desperation from developers slashing prices.”

After working in the real estate industry for 25 years, Infinito Real has one of the largest portfolios of property for sale in Portugal.  They offer services in financial advice including mortgage and taxation, interior design and legal and contractual advice, all learnt from their own experience of buying property.

Play the game

Play the Game:-

The game of Investing in Property has changed and the trick is to change with it before the majority realises what the new rules of the game are.

Real estate markets in various parts of the world are picking up again as investment companies, private equity funds and lifestyle buyers/investors have returned to investing in property, a safe bet.

People will still want to move from rainy and cold countries in Northern Europe to the sunny south and are picking up deals where they can. Portugal hasn’t suffered nearly as badly as most, and much of the standing stock has been bought up by investment companies already, which have kept prices at a fairly high level and markets stable.

Overpriced properties have been corrected and with discount deals available for property investors, 2010 will be an interesting year. Avid investors will stay ahead of the game by going in before the majority of buyers realise prices are rising or beginning to rise.

Make sure you play the game, contact us to arrange Property Inspection Visits at:-

EMAIL: info@irgproperty.com
TELEPHONE: 0845 308 8511 from UK
+351 289 313 325 from Portugal

First impressions count …. Airports!

Your Algarve Holiday Home Airport welcomes you:-

Faro Airport is a modern facility that serves the entire coastal area of Continental Portugal’s southern-most province.

Positioned in a prime tourist area, this airport receives thousands of visitors per year, mostly holiday makers coming to enjoy the summer months, with property owners enjoying stays throughout the year.

An aesthetically pleasing building, the delightfully colourful airport terminal fits perfectly into the climate and ambiance of the Algarve region. It is equipped with all the services necessary for passenger comfort, making it one of the most important airports in the country.

The airport of the Algarve in Faro is an excellent example of how airports as an infrastructure have enhanced the value to the tourism sector in Portugal.

We are happy to help you book your journey, contact us now to find out more!

New decade, new predictions!

What we can predict with some certainly is that Portugal is a hot-spot for Property Investment

What an amazing year 2009 has been. Although the world of property and investment seemed to have been turned upside down recently; the final year in the noughties produced a plethora of exciting investment opportunities.

But where should we be looking to invest in 2010?

The art of predicting where or where not to invest has changed dramatically over the last few years.  Whilst one could assume that the international recession would have limited investment opportunities the opposite has happened creating numerous potential deals to be had in Portugal.  For example, some property prices have dropped dramatically and distressed sales have risen to such a degree that a few huge opportunities still exist.

Portugal with its temperate climate, limited land and strict planning rules, offers an excellent opportunity to invest in all sectors of the property market.  A popular holiday destination with Europeans and the Portuguese themselves, amongst others, the South Coast Algarve bucked the trend by registering fantastic % occupancy for accommodation in 2008-2009.

However like most good things in life these opportunities will be snapped up pretty quickly so if you are interested in hearing more please contact us at:-

EMAIL: info@irgproperty.com
TELEPHONE: 0843 308 8511 from UK
+351 289 313 325 from Portugal

STOP, LOOK, LISTEN………..

Portugal Property Deal of the month!!

Are you looking for what could easily be “the bargain of this year”? Whatever you do…do NOT miss out on these stunningly located linked villas overlooking the shimmering Atlantic Ocean. Check out the views from the individual roof terraces, it’s the ideal place to own your dream holiday home.
If you haven’t yet heard about Benagil situated in Central Algarve, you have now!
Two sandy beaches, located either side of this fabulous development that sits atop the hardy cliffs with savings of up to 100,000 Euros!! Yes you’ve read that correctly! We cannot fail to be impressed and you cannot afford to miss out on this amazing opportunity.
Toss in more than 300 days a year of sunshine, and you’ve got a future so bright you’ll need those shades.

If you are looking for a bargain property in Portugal or maybe you’d like more information or would like to tour these beautiful homes, get in touch with us quickly at :

EMAIL: info@irgproperty.com

TELEPHONE: 0843 308 8511 from UK
+351 289 313 325 from Portugal.