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Price Reductions
Price Reductions
Despite never having been in the market for a villa, and having tried to remove myself from mailing lists, I still get a number of properties in and near Cvo sent to me on a weekly basis.
This arrived a few minutes ago.
"We have the pleasure of presenting you with this truly incredible offer:
STUNNING VILLA NEAR GOLF COURSES REDUCED FROM 700.000 EUROS TO
ONLY 390.000 Euros on a quick sale. Can be 100% financed by Portuguese mortgage"
They have dropped the price by around 45% (sorry - maths was never my strong point). Surely the original valuation must have been out by a long way!
This arrived a few minutes ago.
"We have the pleasure of presenting you with this truly incredible offer:
STUNNING VILLA NEAR GOLF COURSES REDUCED FROM 700.000 EUROS TO
ONLY 390.000 Euros on a quick sale. Can be 100% financed by Portuguese mortgage"
They have dropped the price by around 45% (sorry - maths was never my strong point). Surely the original valuation must have been out by a long way!
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e-richard
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Re: Price Reductions
Here's a cynical view:
The Villa in question was probably only worth €350,000 a year ago, but the owner was not in a real hurry to sell, so they put it on the market for double.
Now, someone is going to come along and feel that they have a real bargain, having "saved" €310,000 !
The Villa in question was probably only worth €350,000 a year ago, but the owner was not in a real hurry to sell, so they put it on the market for double.
Now, someone is going to come along and feel that they have a real bargain, having "saved" €310,000 !
Re: Price Reductions
I suspect that it was partly overpriced and partly that the owners now need to sell. If they are converting back to £s then chances are that they may break even.
If you don't have a mortgage and/or can ride out the storm then you can look to the long term. However, with increasing job losses there is likely to be more people who want 'a quick sale', but I fear that for many that ain't gonna happen. When times were good there wer a lot of people who bought second homes thinking they were an investment, and not looking at the short or long term consequences.
Only recently I had someone ask me if our holiday home in CVO was a good investment. I replied that they should only consider it as a lifestyle choice, and a possible long term investment. I pointed out some of the running and maintenance costs, which many people fail to take fully into account. I have also had people tell me that it must be nice to have free holidays. I point out that they are not 'free' as it costs thousands to run and maintain each year. Yes, it will have increased in price substantially, but then we bought 18 years ago this year. However, we still love the life in CVO and don't need to sell, so its not a problem for us. I suspect that for many that is not the case, and I saw many more 'offers' for a quick sale when I was there in February.
If you don't have a mortgage and/or can ride out the storm then you can look to the long term. However, with increasing job losses there is likely to be more people who want 'a quick sale', but I fear that for many that ain't gonna happen. When times were good there wer a lot of people who bought second homes thinking they were an investment, and not looking at the short or long term consequences.
Only recently I had someone ask me if our holiday home in CVO was a good investment. I replied that they should only consider it as a lifestyle choice, and a possible long term investment. I pointed out some of the running and maintenance costs, which many people fail to take fully into account. I have also had people tell me that it must be nice to have free holidays. I point out that they are not 'free' as it costs thousands to run and maintain each year. Yes, it will have increased in price substantially, but then we bought 18 years ago this year. However, we still love the life in CVO and don't need to sell, so its not a problem for us. I suspect that for many that is not the case, and I saw many more 'offers' for a quick sale when I was there in February.
Re: Price Reductions
People really are just greedy. We've just come back from our 3 bed villa in Carvoeiro. Our neighbours' bought their villa before us so for a cheaper price. Their villa has been on the market for about 2 years now for more than double what we paid for our villa so a vast profit on what they paid. They haven't dropped the price. They probably don't need to sell but why put such an outlandish price in the first place? We bought ours not as an 'investment' but so we could spend holidays in a nice place and maybe semi retire in the future. No doubt in the longterm future we will have made a profit but not a huge one. We look at our house here in the UK in the same way. We love our house and it's a happy home. If we make money on top, then that's the icing on the cake. 
Re: Price Reductions
Agree with Mac. We purchased in 2009, and occasionally we are asked if it was a 'good' investment and if it had increased or decreased in value since purchase. In reply we usually state the obvious - we didn't purchase to make a quick profit, nor indeed a long term profit, though of course if we had to sell this would be a bonus. We purchased because we like Portugal, we like Carvoeiro, we loved the apartment when we saw it and the location (and we saw a lotttttttt of apartments in various locations from Tavira to Lagos )blew us away. So it's not all about the bottom line, lifestyle comes in play, and just 15 months on I can say we are pretty happy with the decision.
Re: Price Reductions
We fell in love with Carvoeiro and the Algarve 8 years ago and decided to buy an apartment 5 years ago - we were fortunate as our purchase was long-term for a 'lifestyle' with investment being very much a secondary consideration. Delighted with our decision and so pleased that we did not just buy 'anywhere' for investment as we would not have enjoyed the wonderful pleasures of the Algarve.
When we visit we do notice what appear to be some 'outrageous' prices being asked for properties which are presumably second-homes where owners do not need to sell and are purely marketing on the basis that 'you never know what might come forth' so this can produce a very false market??
When we visit we do notice what appear to be some 'outrageous' prices being asked for properties which are presumably second-homes where owners do not need to sell and are purely marketing on the basis that 'you never know what might come forth' so this can produce a very false market??