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Portugal for Sale
Portugal for Sale – The Country. Over the last couple of years we have seen an enormous increase in the amount of properties in Portugal for sale with the Algarve on the south west coast probably seeing the most activity. This is simply because many of the buyers over the last twenty years or so have been the second home buyer and tourist who have frequented and enjoyed this part of Portugal.
It is not only property in Portugal for sale, but also an increasing amount of debt which has been offered both to the internal and overseas investor alike, with Portugal recently having to ask help from the international institutions simply not to default on their interest payments.
In order to reduce their liability the Portuguese Government have also sold some of their patrimony whilst at the same time off loading quite a substantial chunk of their gold reserves.
With some interest rates on debt being paid at around 10% and more, there is the concern that like Ireland and Greece the economy will suffer long term which unfortunately bodes badly for the younger generations who may be straddled with debt for a very long time in to the future. There are concerns that the future of the one tier European Union is also in doubt.
With interest rates on the rise both on national and private debt the concern for higher inflation seems to be realistic, yet for the time being property prices still seem to be in decline.
This may prove to be an ideal, but limited buying opportunity as two opposing forces seem to be offering property in Portugal for sale at a reduced price; however when inflation takes hold property prices may firm and even rise which in turn will produce great value for the property owner and especially for those who hold property for rental income purposes.