Property investment on the Algarve
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Following many years of enjoyable holidays in Spain, Chris and Mary Hammond from Bramhall, Cheshire, decided to buy into the holiday home dream. Purchasing a two-bedroom apartment in Marbella for 213,000 Euros in 2002, the couple pictured a steady return on their investment as they continued to soak up the sunny offering of their much-loved Spain. However, their dream soon turned sour. Chris, 56, explains: "After three years we planned to sell the apartment in order to fund a larger holiday home, but we gradually realised that this would be a terrible move to make. Sadly, we felt that Marbella had gone drastically downhill. I've heard that thousands of properties built in Marbella in the past ten years have been illegally built or do not possess proper building licences. On top of this, the mayor of Marbella and various councillors were charged with corruption! With dubious property agents and developers plaguing the market, we completely lost faith in the property system. But the final straw came when our car was broken into and a number of our neighbours were burgled. The area was obviously changing for the worse, and with the cost of living going up too, we put our apartment up for sale."
Seeking an alternative location, Mary and Christopher were thrilled to hear glowing reports from friends who had purchased in the Algarve. "After several visits we were hooked, and found the port town of Lagos to be the jewel of the Algarve," says Mary, 55. "We were keen to buy a property, but didn't want to experience the negative outcome we had with Spain, especially when it came to finding a reputable agent."
But the couple needn't have worried, since numerous friends highly recommended the company Jones Homes for them to approach. Booking an inspection trip for March 2006, the couple firmly requested that they wanted to travel independently on top of the tour, in order to gain a wider view of both the property market and area. Yet when Jones Homes took them to the Boavista Resort, the golf and leisure development provided everything the couple could wish for.
The 210-hectare cliff-top site in the Western Algarve is located between the historic bustling marina town of Lagos, where there is a regular bus and excellent taxi service from Boavista, and the attractive coastal resort of Praia da Luz. Moreover the facilities at Boavista itself offered more than enough appeal. As a keen golfer, Chris was delighted by the magnificent Howard Swann-designed golf course: "It's such a superbly challenging course, that no matter how many times I play, I know I'll never get bored," he enthuses. "Also, the club has an excellent membership who quickly made me feel at home. Mary loves the fact that there are fantastic beaches nearby, and the new clubhouse and its facilities will be ready this summer, so we'll have everything we need for our future holidays."
The spacious, well-appointed clubhouse with its impressive array of facilities will reward members with a full range of wining, dining and relaxation facilities, while a luxurious health club will incorporate a heated indoor swimming pool with Jacuzzi, sauna, steam room, massage facility and a beautician. Adding to this considerable selection of activities, a gymnasium with fitness studio overlooking the swimming pool is to be accompanied by tennis courts, a football area and children's play area.
Adding to the resort's temptations, the couple found the property to be equally compelling. Luxury villas occupy the perimeter in elevated positions, with the golf course of integrated indigenous and formal planting weaving between, while the use of a natural colour scheme for the villa exteriors serves to enhance their harmony with the natural environment. In fact the couple felt so content at the thought of owning a property at Boavista, their decision to buy was immediate.
Paying a €10,000 (£6,500) deposit to secure the only three-bedroom detached villa on-site at a total purchase price of €495,000 (£335,000), their only concern was the sale of their Spanish apartment. "Thankfully we sold this in April 2006, but not without considerable hassle," explains Chris. "Although the apartment's value had risen in 2003, by 2006 the market had slumped and in the end we were lucky to break even with the sale, but at least we were free of Spain and hadn't made a loss."
Putting the Spanish fiasco behind them, the Hammonds' new Algarve property has turned their overseas holiday home dreams around. Their villa has fine views over the golf course to one side, and the communal pool and Lagos to the other. "We chose not to have a private pool as we didn't want to take on the extra cost and maintenance, and as the resort pool is only 50 metres away, there really seemed little point," says Chris.
"On top of the perfect property, thanks to the sales team at Boavista, we were pleasantly surprised at the hassle-free purchasing procedure, especially compared to our Marbella nightmare. We were given help in all manner of things to help us set up home and settle in. We were also put in touch with a solicitor, and since friends of ours had used him, we had complete peace of mind."
When it came to furnishing the villa, Mary took control, with the sales team at the resort suggesting the most suitable company. "As this company was familiar with the Boavista properties, the staff knew exactly the style and size of the rooms, which made the whole process a breeze. We paid around €25,000 (£16,500) to furnish the entire villa, and there were only a few minor hiccups during the delivery, but all these were rectified straightaway, meaning that the property was ready for our first holiday in October 2006. Now all we have to worry about is how we'd like to spend our time there," laughs Chris. "Now that we've spent more time in Portugal, we've realised that it's so much better than Spain. We find the Portuguese people much friendlier and even eating out is about a third cheaper, and crime certainly isn't the problem it was in Spain. In fact, we feel completely at ease with our investment, especially since our property is already worth over €550,000 (£375,000)! But the best part about this stage in our lives, is that we're handing over the reigns of our building supplies business to our son and daughter, meaning that we'll be able to spend even more time in Portugal."
The Hammonds' top ten tips:
- Choose a destination with a good reputation, particularly with regard to crime rate and property system
- Choose an agent or developer that comes highly recommended
- Do independent research as well as searching for property through an agent, so that you gain a good overall view of the market
- Use a lawyer that comes highly recommended so that the buying process is seamless and worry free
- Make sure the resort and surrounding area will keep you entertained no matter how many times you visit
- If you think you would like help with setting up your home and settling in, choose an agent that offers a good after-sales service
- Choose a location with easy and reasonably priced flight options so that multiple trips a year are affordable
- If the development you are buying on is not finished when you plan to buy, find out when the completion dates are for the various facilities and properties, so you are not left without amenities and services you need for enjoyable holidays
- Investigate the cost of living before you decide to buy, especially if you plan to spend a lot of time at your overseas property
- Take advice from people who have already bought in the area/development you are considering, as their personal experiences will speak volumes.
Read our other articles about buying property in Portugal:
as well as our overseas news stories affecting the property market in Portugal, the Homes Overseas Guide to Buying Property in Portugal or view our range of property for sale in Portugal.
First published in Homes Overseas Magazine September 2007.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
