To buy in Portugal or go back to Australia???

[Astrogirl72]

I am Australian married to a Portuguese man and currently live in Portugal with our two young daughters. We have been looking to buy a Quinta in Portugal and rebuild a ruin to our dream home, however my family in Australia as well as my husbands family here in Portugal think we are crazy and should take out money back to the "land down under" because of the financial crisis we are currently in.

I am so confused as I was looking forward to our new life here, but also now concerned that we may be making the wrong decision. Would love to get feedback from other expats now living here and their experiences with living in this country - being positive or negative.

If we were to stay, we would need to make a living off our Quinta and thought pig farming may be a great option. So any input regarding this would also be wonderful.

[Tony1]

Astro,

Prices will fall unevenly across the EU. Portugal will actually not be too badly hit, Spain will be hit harder. However consider buying an investment property in Oz and rent in Portugal for say 2 years and then review what you want to do.

Pigs can be a challange if you are not experianced. The price of Olive Oil is down at the moment but that won't last so give some thought to an olive farm. At least that is what we are thinking.

Tony1




we have decided to rent will take a modest hit

[Astrogirl72]

Thanks for your quick response Tony1 and your words of encouragement.

[Sirtravelot]

Doesn't Australia hold a better future for your children?

[canoeman]

If you need to turn your dream into a profit making enterprise to continue to live here, then I think you need to take a really, really hard look at Portugal, current EU crisis and compare to a future back in Oz and be very realistic.
Farming of any sort whether pigs or olives requires investment, expertise and being able to break into a local market, let alone cope with constant changes in EU regulations, which one round of put paid to a friends pig farm overnight, then you have Portuguese bureaucratic nightmare on top even on minor things like buying Agricultural Diesel.

If you didn't need the profit element different kettle of fish.

[anapedrosa]

I wasn't sure whether to jump in here as I don't yet live in Portugal, but I have to agree with Canoeman, it depends on your motivation and needs.

My partner and I purchased land last year and will start to build this year. I am not overly worried about the property value short term fluctuations as we will be moving there to live, our concern is with quality of life. Our income will be coming from Canada. Australia and Canada are in good economic shape compared with Europe right now.

You mention two young daughters, so I am not sure whether youth employment is at the top of your list. My children (young adults) are able to find work in Canada, though they may grumble about it, they have choices and I am not sure that is the case for many Portuguese youth at the moment. However, if your girls are young, things will change in both countries by the time they are looking.

If you are wanting to farm in Portugal, I believe there is a program aimed at young people, where via an application there is the potential to use government land and there is an incubator program - they are trying to encourage young people to go back into agriculture. I am not a farmer and I believe it is not an easy life, so some caution here.

By the way, my family and friends in Portugal have also expressed surprise that we are choosing to move to Portugal. We can't wait! This is our situation, I wish you and your family the best of luck whichever path you choose.

[danlondonuk]

Very interesting comments, do those already living in Portugal see property prices falling and us the market still stagnant, I am hoping on creating a bed and breakfast accomodation in eastern Algarve faro regions, have seen an expensive large property with land but would have to sell my uk homes.
The uk weather...constant rain makes me very depressed as I love the warm outdoors lifestyle and have found the Portugese people very friendly, should I wait or as now the exchange rate from uk £ to Euro is favourable, unfortunately the pound could fall against the euro with further money printing here.....Any advice ..Positive and Negative.I have not seen tourism drop in the Eastern Algarve region and feel a bed and breakfast aimed at uk holidaymakers could work?
Greatly Appreciated.

[canoeman]

The best buys are going to be from expats wanting to return to home, the Portuguese are now being more realistic over property prices but unless they really need the money are still reluctant to negotiate, Portuguese are the second largest group of homeowners behind USA driven by succession laws, so often they don't really need to sell that second or third home or part share.

B&B in current Portuguese climate, but more importantly the rest of EU including UK where your business is likely to be from, you need to be very realistic with your business plan.
To me the Algarve region is more suited to holiday lets, B&B more suited to rest of Portugal that B&B type customers are more likely to visit.

If this is a really serious proposition, then you should sell in UK first, the possibility of a quick sale here could vastly affect price.

[danlondonuk]

Originally Posted by canoeman

The best buys are going to be from expats wanting to return to home, the Portuguese are now being more realistic over property prices but unless they really need the money are still reluctant to negotiate, Portuguese are the second largest group of homeowners behind USA driven by succession laws, so often they don't really need to sell that second or third home or part share.

B&B in current Portuguese climate, but more importantly the rest of EU including UK where your business is likely to be from, you need to be very realistic with your business plan.
To me the Algarve region is more suited to holiday lets, B&B more suited to rest of Portugal that B&B type customers are more likely to visit.

If this is a really serious proposition, then you should sell in UK first, the possibility of a quick sale here could vastly affect price.

Informative and Practical, yes very serious in the move over and offering an upmarket guesthouse eastern Algarve I agree with you that Portugese reluctant or need to sell in current climate however the exchange rate £ to Euro are favourable it depends which way they go which is anyone's guess, although the uk £ will prob also decline in value as well. Regards dan

[canoeman]

UK £'s picked up against € but nothings really that stable at the moment, Spain is the one that could really cause a problem with €, but then the other night reported that just 2 off the UK Banks have 30 Billion at risk in Spain, all effects UK economy.

Just a quick look on Owners Direct lists 10 B&B for Eastern Algarve, doesn't sound a lot but that's just one site, personally I'd be a bit more flexible about area.