independent retirement living options in paradise · brexit and a hung parliament. uk buyers now...
TRANSCRIPT
INDEPENDENT RETIREMENT LIVING
OPTIONS IN PARADISE
LIO CONFERENCE
CARVOEIRO, ALGARVE, PORTUGAL
Portugal at a glance
• Madeira: warm all year, furthest to fly• North/Porto: cheapest, history and culture,
colder/rainier• Silver Coast: cheaper, windier/cold sea• Cascais/Estoril: cosmopolitan, existing expat
community, more expensive• Lisbon: good for year-long rentals; purchasing
historical property; quick movers• Algarve: top tourist destination. Gets 70%+ of all
real estate enquiries. 3000 hours of sunshine, 300+ sunny days a year (more than California). Large multinational expat community. GOOD for winter/summer rentals; year-round rental investments; holiday investment property; best overall value for money
Crisis and opportunity, property rebounds
1. USD consistently high levels against the Euro, around €0.90 (90 cents), and has been trading in the 87-95 cent range since Jan 2015
2. USD at historically high rates against the Pound (70-78p+) due to Brexit and a hung parliament. UK buyers now selling to receive proceeds in GBP. As the Pound has fallen, UK sellers are able to discount the Euro price, creating a great opportunity, especially with sellers who bought pre-2008 financial crisis
3. Market most active since 2008. Transaction times low. Prices rising. 1. French are fleeing taxes, social unrest and terrorist threat2. UK buyers worried about Brexit back in the market3. Scandinavians seek sunshine, friendly people and low tax4. Brazilians seek safe currency haven with cultural/language links
Typical ways to get residence in Portugal
NON-EU CITIZENS (without automatic right of residence)1. Golden visa:
1. €500K Investment2. €350K in historical city centres with redevelopment need
2. D7 subsistence visa with minimum income requirements• 1st adult: €530/month• 2nd adult: €265/month
EU CITIZENS (automatic right of residence)• If you have EU passport, use it, if you can get one, do so!
NHR (Non Habitual Resident) status via either:1. Rental contract2. Purchase of a property3. DO NOT FORGET: you can rent before you buy!
Why the Lisbon/Cascais/Estoril area ?
• Several times voted Europe’s best cruise, weekend break and city break destination• Existing multinational expatriate population. English very widely spoken• An excellent mix of historical/traditional and modern real estate options• The most popular destination for Portugal’s Golden Visa program (similar to the US EB-5)• Lisbon undergoing a huge redevelopment boom, prices rising monthly• Most sought-after location for urban regeneration and redevelopment projects• TAP running a promotion allowing long-haul guests to stop over for 1-3 days for free!
Why the Algarve?
• Voted the Best Place in the World to Retire• Some of the best beaches, golf courses and marinas in the world• Existing multinational expatriate population. English very widely spoken• Food and wine among best and freshest in the world. Largest fish consumer in Europe• Attractive and well-priced real estate. Algarve much less developed than Spain• Many sporting, nature, historical attractions and activities• A high degree of anonymity and respect for privacy• Is the Algarve Europe’s most famous secret? 7 million a year visit it, most in the summer!• To many people, this is as close as it gets to PARADISE!
The options pyramid
Short-term Rentals
Property for sale
Winter Rentals
Full-time residence
Care
Senior/Retirement Living “villages”
Va
rie
ty o
f o
ptio
ns
Searching for a new home: traditional approach 1
Google “2 bed apt
with sea view”
List too long, slash
budget
Nothing you like,
friend
recommends town
Great properties,
not sure where
town is
Google town, not
sure busy enough
in winter
Adjust criteria,
enquire online via
local agent
Same property
2nd site, diff.
price, diff. view
???
Enquire into as
many properties
as possible
Agent starts
sending options
Agent finally asks
when you will visit
Contact stops
when you say 12
months’ time
You decide to use
your extensive
exprience to…
Become a
Portugal EXPERT
based on DTR
Perhaps another
country…?
Another year?
Searching for a new home: traditional approach 2
Google “2 bed apt
with sea view in
town X”
List of properties
and listing agentsStart to book visits
On day of visit,
some properties
not available
Visit: 2nd agent
returns to same
property as 1st
Agent does not do
rental
management
About to close
deal, when…
You spot a great
deal in another
town
Ask agent in town
1 if they cover
town 2
Agent starts
scrambling: APB
to partners!
You work in
parallel and
contact others
Town 1 agents
stop writing to you
You figure 1st
option was best
but…It has now SOLD!
Perhaps meant
not to be…
you tell yourself
Searching for a new home: limitations of traditional approach
• No overall view of the market: bottom-up instead of top-downSOLUTION: consider location before property (where before what)
• Your natural curiosity: as many options as possible;Your traditional approach: one agency, or one location, etc
SOLUTION: consider location before property (where before what)
• The further away you are, the more you need someone working for you. SOLUTION: consider finder’s agreement, firm will work for you
• Most firms will not be able to cover rentals, sales, investments etcSOLUTION: make sure your selected partner has expertise in each
• In case of doubt or a tie…SOLUTION: choose the one who has done what you want to doe.g. if a bank manager wants to sell you an investment product, ask them if they have invested AND made money with it
Searching for a new home in Paradise
Do you
know the
region?
Eliminate areas
Select finalists using
key criteria:
beds, views, style,
town size, car,
amenities, budget.
Rent, buy
or RBYB?
Discovery Tour
May need to
exclude short let
properties
Length
of rent?NHR ? Care ?
Only properties
with suitable
contracts
Proximity to care
home to minimize
disruption
Golden
visa or
D7 ?
Invest-
ment
yields?
Budget enough,
not more
Head
vs.
Heart ?
Personal use?“Nice location” is
not enough. Price!
Independent Living: 2 bedroomapartment with a pleasant view
< €200,000Modern or
refurbishedHistorical city view
Condo with on-site
amenities such as
indoor pool / spa
Yield > 7% With large terrace No steep hills
Larger town close
to cultural
activities
WINTER LET: 2 bedroom sea-view apartment
Modern 1, 2 and 3 bedroom apartments in fantastic location near the beach
One of few long-term modern let options near Praia da Rocha in Portimão, at excellent prices
LONG-TERM RENT: from €599 per month + expenses
Well appointed, light and spacious apartments located in the popular
neighbourhood of Praia da Rocha in the bustling city of Portimão. The
apartments are fully equipped and furnished to a contemporary
standard. Conveniently located for all local amenities including easy
access to the wide and popular Rocha beach.
1, 2 or 3-bedroom modern apartments with a variety of views
Walking distance to Rocha beach, restaurants, shops and public
transport
Contemporary furnishings
Elevator, entry phone, lobby and plenty of parking
Fully fitted kitchen including washing machine in 2 and 3 bedroom
apartments
Current Portuguese investment climate
• Portugal is getting a lot of good press
• Tourism is increasing, 8 record-breaking years in a row
• Prices are going up
• Cheap deals last weeks, sometimes days
• Construction has restarted
• Single-property redevelopment has grown substantially in major tourism hubs. Smart money is on medium-sized (10-25) projects or those with a clear focus (for example, senior independent living or care)
• If you want a cheap deal, be ready to move quicklySIGN UP FOR OUR INVESTOR MAILING LIST
• If you want larger deals with good returns, get in earlySPEAK TO US ABOUT OFF-MARKET OR EARLY STAGE OPPORTUNITIES
About ASL
• Solutions for retirees moving or spending winters in Southern Europe
• Accommodation for rent (incl. serviced and “try before you decide”)
• Property for sale (including property sourcing and investment)
• Mainly 1, 2 bedroom apartments, 3 bedroom villas, and refurbishments
• Coverage of Algarve, Lisbon/Cascais/Estoril, Silver Coast (and Spain)
• Discovery tours in up to 8 languages
• Post-installation services via specialist partner network (utilities, health, vehicle registration, legal, banking, pets, cultural & sporting clubs)
• Clients from 20 countries around the world
• 6 nationalities consistently move for Portugal’s NHR (tax-free) status
• A few nationalities obtain residence via the Golden Visa program
“Discovery tours”
• A combination of tourism and real estate• Understanding the context of the region and its areas• Visit to a variety of real estate options• Accompanied by an expert knowledgeable in the region• Next “Discovery Tour”:
• LIO Conference 2017• Lisbon: 3-4 July: talk to us about individual tours or
joining small group on July 10• Algarve: 2 days: 8-9 July: €250/pax; €400/couple
• Numbers STRICTLY limited. First tour full, second tour MAXIMUM 18 places available – sign up today
For more information
• Visit us at our booth to find out more or to book a Discovery tour!• Let us know if you want to be placed on an investors’ mailing list –
fill in the questionnaire on the desk.
CONTACTS:
Luís da [email protected]
UK: +44 208 144 7558PT: +351 965 683 054