31
-
is substantially below Canada's "business/investment capital requirement of $C100,000.
In a moment, I'll show you how, by the time you receive your Portuguese citizenship papers, your total cash outlay could be zero--and you may even realise a small profit. First, let's con- sider the principles of real estate investment as they apply to Portugal.
Location
It's said that the three most important criteria for any real estate investment are location, location, and location.
A real estate investment can offer you two kinds of returns:
1.
Capital appreciation. While general economic conditions may cause all property to appreciate (or decline) in value, a quality property that will have continuing demand regardless of economic conditions offers greater potential appreciation than just any property (plus lower downside risk in any general decline in property prices).
2. Rental income. Any rise in rental income will be accom- panied by capital appreciation (and vice versa) as the level of rental returns has a similar cause: a well-located property that can easily be rented.
In Portugal I have identified two kinds of property which offer superior potential for appreciation and rental income:
Luxury apartments/houses in Lisbon
In January 1986, Portugal will become a member of the European Economic Community. One effect will be an influx of bureaucrats into Lisbon seeking superior (government paid) accom- modation. In addition, Portugal's economy should receive a significant boost from EEC membership which will further improve demand for such property (see business opportunities in Portugal, below).
Vacation/retirement villas
The Algarve region of southern Portugal is an exceedingly popular vacation destination for travellers from Britain, Germany, the Netherlands, and the Scandinavian countries. addition to hotel accommodation, there is a significant demand
In