| A growing number of regular visitors to Algarve have spotted the advantage of owning a well located property and making it available for rental during the part of the year when they are not using it themselves. |
This policy has many reasons to commend it. |
| The property can be used by the owners in the quieter periods of the year for golfing breaks , weekend visits and longer Winter rests away from the harsher northern European climate. |
| The rental income during the prime letting periods can be substantial depending on the weeks made available. |
| The revenue achieved contributes to the annual running costs of the property and ensures that it is maintained in first class condition at all times with the additional benefit of capital appreciation such a property enjoys. |
| If good advice and care is taken in the selection of the property it is reasonable to anticipate an annual net return of between 8 to 12 % on the investment plus, of course the appreciation, in the resale value of the property. |
| Some basic rules should be considered before parting with your investment fund: |
• Whether buying a brand new property or an older one to renovate, it should be located in a "tourist area", for example near or overlooking a Golf course, within easy walking or driving distance to the beach and all other holiday amenities.
• Because of the limited availability of weeks to rent and the constraints imposed by the need to remain competitive with rental charges, it is unlikely that an investment in excess of GBP. 500,000 could achieve a percentage return similar to the figures mentioned above.
• It is vital to entrust your property to a well-established rental Agency, they have your home in their hands!
• Treat the property as a commercial investment with an added leisure bonus, furnish it sensibly and do not become emotionally attached to it, allow your Agency to earn money for you. |
How to get started? Virtually anyone can participate. |
| • A well-located apartment in an excellent location can be acquired for GBP 100,000 |
| • Shared between 4 or 6 Golfing friends as a first " dip in the rental ocean " the individual contribution becomes very reasonable and can not only provide free Holiday accommodation, a better return than Bank base rates, but just as important a heck of a lot of fun in the sun. |
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Algarve Guide