A Question of Property - Ep 18 - Paul Mahoney, Stefano Lucatello & John Howard - Nova

A Question of Property – Ep 18 – Paul Mahoney, Stefano Lucatello & John Howard

Lucia France:

Hello, and welcome to episode 18 of A Question of Property, where we answer all of your burning property questions. I’m your host, Lucia France, and I’m joined by our usual panel of experts. We have John Howard, property expert of, would you believe it, over 40 years experience in the industry. And author of three different books on the subject, including the most recent, Buying and Selling at Auction. How are you today, John?

John Howard:

I’m very well, and I can’t believe it either.

Lucia France:

No, none of us can. None of us can.

John Howard:

Thank you.

Lucia France:

Stefano Lucatello, welcome to you as senior partner at Kobalt Law International Property Lawyers and our go to for advice on buying and selling property pretty much anywhere in the world. So how are you Stefano?

Stefano Lucatello:

Morning Lucia, thank you. Very well. Morning all.

Lucia France:

Good. Good Morning. And Paul Mahoney, last but not least, our best selling author, award winning property speaker and head of Nova Financial Group and our much needed voice of reason within the group. Good morning, Paul.

Paul Mahoney:

Good Morning.

Lucia France:

So guys, your very first question for today, I’ll start things off. Where is your favorite place to go on holiday? Would you go beach or would you go somewhere cold or a walking holiday? Let’s go to Stefano for this one first.

Stefano Lucatello:

My favorite place is Italy. Why not?

John Howard:

What a surprise.

Stefano Lucatello:

God’s country, as one would say.

John Howard:

Mafia country more like God.

Stefano Lucatello:

Careful what you say, John. Careful.

Lucia France:

John, we’ll go to you for that. I had a feeling you were going to say the UK, John.

Paul Mahoney:

Ipswich.

Stefano Lucatello:

Ipswich, yeah.

John Howard:

Well, I have to say there’s a place in Suffolk called Walberswick, which is very famous.

Stefano Lucatello:

It’s where you didn’t get those flats, isn’t it, John?

John Howard:

It’s exactly-

Stefano Lucatello:

You’ll never forget that.

John Howard:

[inaudible 00:01:58] I didn’t get those flats and it’s a very, very special place to my heart, it’s beautiful Suffolk [inaudible 00:02:01] next to Southwold and if anyone’s got the chance to go there, they should. A awful lot of very [inaudible 00:02:07].

Stefano Lucatello:

Oh, we’ve lost him.

Lucia France:

We’ve lost you there, John.

Stefano Lucatello:

He’s paused. Keep him like that.

Lucia France:

[crosstalk 00:02:18] John there, we’ll go onto Paul for your answer for this one while we get John back.

Paul Mahoney:

[crosstalk 00:02:23] asleep, isn’t he? Yeah, look, it’s beach for sure for me. I grew up on a beach town in Australia, I love Spain. Being on the beach, drinking sangria, eating tapas. I don’t think you can beat that as a holiday.

Lucia France:

No, nothing wrong with that at all. Yeah. I’d have to agree with you there on Spain, having lived there for a while and I do actually really love California as well. I lived there for a while and that’s got some beautiful beaches and also beautiful kind of scenery and stuff like that as well.

Stefano Lucatello:

Have you ever worked in this year? You just seem to have one long holiday.

Lucia France:

Well, I was working out there.

Stefano Lucatello:

All right.

Lucia France:

I was working out there, yeah. One long holiday, the cheek of it. John, are you there? Can you hear us? We’ll come back to John. Hopefully by the time we’ve got through these first two questions. Paul, are you still recording speaker view?

Paul Mahoney:

Yes, I believe so.

Lucia France:

Maybe if you record gallery view… Oh yeah, that should be fine.

Paul Mahoney:

[crosstalk 00:03:21].

Lucia France:

Okay, Paul, let’s go to you for the first question then. Predicting the future here, Paul, do you think that the opportunities and the profits that your clients have made over the last five years in investing in property will continue for the next five years? And if so, why?

Paul Mahoney:

Yeah, good question. Okay. The short answer is yes, and the reason why is we change locations when it makes sense to do so. So, I think the best way to answer this is with examples. For example, Manchester, five years ago, we were investing, ourselves, and our clients were investing in the likes of Deansgate, which is right in the center of the city. Back then you could get a well size desirable, two bedroom apartment for low 200,000s. For those same assets now, you’re paying about 350,000. So that area has grown substantially from sort of 250 pounds of square foot to 450 pounds of square foot. So, obviously we’re not investing there anymore because, relating this back to the question, it’s hard to see that same growth over the next five years. It will unlikely happen.

Paul Mahoney:

However, as we’ve seen that happen, we’d moved to new locations, but still within the same city. So for example, the fringes of the city. One particular development where we had quite a few clients [inaudible 00:04:56] called one Region, bought there about 18 to 24 months ago. Again, at that sort of similar 250 range for two beds, and now those properties are selling for over 300,000. So I’m sure everyone’s heard of the ripple effect. That has been very obvious in Manchester over the past few years and then you go one step out again, for example, where I’ve just bought a property in Salford in Manchester, which is just outside the city center, but it’s between the city center and Salford Quays. Two major employment hubs in their own right, and that [inaudible 00:05:34] area is being squeezed by the expansion of the city center and Salford Quays. And, probably over the next few years as that gentrification and development happens, we’ll almost all become one. So, that’s where we see the next growth opportunity. For example, where I’ve just bought there, you don’t quite have the cool cafés and the trendy gastro pubs on your doorstep, but you can see them down the road. So that’s where we see the opportunity in that particular city, for example.

Paul Mahoney:

So, I suppose, to round out the answer to that question is if you’re investing in the right properties in the right locations, based upon the current situation, then yes, you can be [inaudible 00:06:20] growth in the short, medium and long term. However, you do need to adapt to the way the market changes.

Lucia France:

Okay.

Stefano Lucatello:

So, Paul, are you saying that Salford is a good place to invest because I was told-

Paul Mahoney:

[crosstalk 00:06:31] circumstance [crosstalk 00:06:31]-

Stefano Lucatello:

…Salford has been-

Paul Mahoney:

…not all of Salford but parts of Salford, yes. I’m in the process of buying a property there at the moment.

Stefano Lucatello:

Yeah, because Salford Quays appears to have sort of bloomed [crosstalk 00:06:41]-

Paul Mahoney:

Well, phase two of Salford Quays is now starting.

Stefano Lucatello:

Right.

Paul Mahoney:

You’ve obviously got a media city there, so BBC and ITV, EON. So it’s a big sort of tech and media hub and that’s growing and then also the city center’s growing. So you’ve got this little corridor in the middle between those two locations that is all kind of getting squeezed by a lot of development. And as we’ve seen time and time again, I often give them a base and I often refer to places in London that have experienced growth, like Shoreditch because it’s close to the city, Stratford because of the Olympics and Westfield, the Docklands and Canary Wharf. Southeast London now. All of those areas have gentrified or are gentrifying, whether that be because of their proximity to the center of London or through major development and new facilities and amenities. So they’re the sorts of things that we look for to give confidence in those sorts of things.

Lucia France:

Yeah, Paul, with this question, it’s, this person is basically asking you to predict the future, which of course is impossible, but you’re talking about look at the area specifically rather than a [crosstalk 00:07:49]-

John Howard:

[crosstalk 00:07:49] and I’ll say it again, I said it in the last episode, far too many people focus on the direction of the overall market. Don’t try to ride the UK property wave, identify the best possible location that are driven by individual driving factors and have depth, depth in areas such as employment, facilities, amenities, infrastructure, try to tick as many of the boxes as you can so far is what tenants and future buyers want because that’s going to drive demand and that creates safety.

Lucia France:

Great.

Stefano Lucatello:

Very interesting, Paul. As you’re talking, I’m just looking on the net now. You can get a flat in Salford Quays phase two for just under 100,000 pounds, two bedrooms. That’s very good value.

Paul Mahoney:

I don’t know what they’d be like.

Lucia France:

Under 100,000? Wow.

Stefano Lucatello:

[crosstalk 00:08:36]-

John Howard:

That’s always worrying when a [crosstalk 00:08:38]-

Paul Mahoney:

[crosstalk 00:08:40] I know that know that area well, and a good one bed in that area is going from about 150.

Stefano Lucatello:

Yeah.

Lucia France:

Right, okay.

John Howard:

It’s not always about buying the cheapest.

Paul Mahoney:

No, it’s not.

Stefano Lucatello:

No. Agree with you.

Lucia France:

[crosstalk 00:08:51]. So John, welcome back. Good to see you.

John Howard:

Yeah, sorry. My internet-

Lucia France:

That’s okay.

John Howard:

…being in the country, I’m sorry. Beautiful summer countryside, it has its downside as well.

Lucia France:

You quite get the tail end of your answer about-

John Howard:

Sorry. Very quickly. The answer was, in Walberswick there’s lots of interesting, quite well known people who are… A lot of artists and also one or two film producers and so on, who’ve got second homes there and it’s a very special place. Yeah.

Lucia France:

Fantastic.

John Howard:

Well worth a visit.

Stefano Lucatello:

Isn’t Adnams Brewery-

John Howard:

Adnams beer, yeah-

Stefano Lucatello:

… in Southwold?

John Howard:

…they’re in Southwold. And what you do, you get the rowing boats, which you pay a pound for to get over the river to Southwold. It’s very sweet. It’s lovely. Very special place. Yeah.

Lucia France:

Good recommendation. All right. Okay. Let’s go then to John, for your first question for today. So, John, I’m now on my third property deal, do you think that I’m best to stick with my joint venture partner or to borrow more money from a bridging company and go alone?

John Howard:

That’s a super, super question. And a lot of people get into this situation where they’ve done a couple with someone, they’re thinking, “Well, I’ve only got half the profit, I’ve done most of the work and all this business.” And they look at to sort of be a bit grave and go out on their own. And I think there’s nothing wrong with that. I mean, over the years I’ve had a number of property backers, investors, and also, I’ve done deals on my own as well. So I think you can do both. And I would leave the door open to both because I think, as long as you’re honest with the partner you’ve been doing it with and say, “Look, this one I’m going to do on my own. The next one, I’d be happy to do with you.” I don’t thing there’s anything wrong with that. I would hedge your bets a bit and I would try and… You can’t have too many friends in property, can’t have too many contacts, and you can’t have too many people willing to partner up with you either.

John Howard:

But the problem with other joint venture partners, of course, is one, you’re diluting your profit, depending on what they’re going to do. If they’re the backer and you can’t buy the property without then there’s no [crosstalk 00:11:03]… Then obviously stick with them. But if you can buy the property [inaudible 00:11:08] on your own and make a lot more money and all they’re doing is the same as you, you really want a joint venture partner to be totally different to you. So if you are the financial backer, you’re the financial backer and they’re the doer. If they’re the doer and finding the deals, then you need the backer, but you don’t want to be both doing the same thing because it’s just a waste, you’re just doubling up all the time and you want different skill sets. Yeah.

Lucia France:

Would you say borrowing more money from a bridging company is a wise idea?

John Howard:

Well, it all depends on the deal, but I mean, if you’re giving 50% of the deal profit away [inaudible 00:11:42], and the bridging companies at 15% and you can afford it, then clearly you’re a bit mad to give 50% away. So, in a way, although these bridging are very expensive and I’m always say, “Only use them for a very short period of time and make sure you know how long that time is.” You have to say that it is cheaper than having a backer at 50%. It depends what that backer’s doing, basically.

Lucia France:

Yeah. Okay. So, as usual, it’s all about talking and it depends on the situation.

John Howard:

Absolutely, yeah.

Stefano Lucatello:

You can borrow from your parents because they have a mutual interest.

John Howard:

Yeah, absolutely. That’s always the best route. Families always the best route to start with. Yeah.

Paul Mahoney:

We weren’t all born with the silver spoon though.

John Howard:

No, I do understand and I appreciate that and some people came out the right womb did nothing wrong. That’s the only thing they’ve ever done right and others [inaudible 00:12:34] and done it and have done everything, if you get my meaning, if that makes sense.

Paul Mahoney:

I’m only teasing.

Stefano Lucatello:

Move on.

Lucia France:

Right, yes. Let’s go to Stefano, [inaudible 00:12:45] we’re off to France. So, I’m looking at investing in a commercial shop investment in France. I’m an experienced investor in the UK, but is the landlord and tenant act for commercial properties similar out there?

Stefano Lucatello:

No. The answer to your question-

Lucia France:

That’s good, end of question.

Stefano Lucatello:

Move on. Commercial property in France is a nightmare because commercial properties in Europe are regulated as they are in the United Kingdom by a different body of legislation and when you’re buying commercial property, you don’t get the same protection as you would as a consumer, I beg your pardon, and when you’re investing in a residential property. So you have to be very, very careful because the body of law that exists for residential purchases as a consumer does not exist for the commercial aspect. You need to do proper due diligence. You would have to see comparables as we would in England, but they don’t have that sort of information available as we would do in England. So if you’re buying a commercial in the United Kingdom, you would go and do, I’m sure the guys would agree-

Lucia France:

Sorry, Stefano. Could you just repeat that? We just [crosstalk 00:13:58]-

Stefano Lucatello:

[crosstalk 00:13:58] lose me?

Lucia France:

[crosstalk 00:00:13:59].

Stefano Lucatello:

The same body of law doesn’t exist for commercial property in France as it does in England, you would have to do proper due diligence. And you don’t have comparables in France. So in England, if you go and buy a commercial property, you would go and see what the others around it are doing, just to have an idea of what rent yields you would get and all the rest of it. In France, it doesn’t exist, sort of information doesn’t exist, or if it does, it’s very difficult to get. So you’re having to use a totally different mindset. My advice to anyone investing anywhere abroad is to have someone there who knows what they’re talking about on your side. So you would actually instruct a surveyor, over there, who would tell you what’s what, what’s happening, what trends are doing, what the rental yield is and whether it’s a good or a bad investment.

Stefano Lucatello:

The other thing is that getting people out abroad is much more difficult, as we said before, especially on a commercial lease. Commercial leases are very difficult to get tenants out of even if, and I have one at the moment in Paris where we’re having a real problem, even if they are in the wrong, because you can’t just go and evict them, as with all things, you have to wait for the process to go through court and if you don’t, you’re in breach and you can have the police coming after you. So you have to be very, very careful.

Stefano Lucatello:

Commercial property in France, Spain, Italy, Portugal, is totally different from here and it’s regulated totally differently. Get someone who knows what they are talking about to affect due diligence on your part beforehand.

John Howard:

Stefano, do they do, like in the UK, 21 for pairing and insuring leases and things like that with rent reviews or they don’t?

Stefano Lucatello:

Leases do not, as such, exist abroad for commercial property. Most of the property that you sell is bought as a freehold and leases called [foreign language 00:15:58], bail, B-A-I-L, as in bail, very rarely exist. And when they do exist, they are very draconian, they’re very tight and we don’t have the same of the equivalent of the landlord and tenant at 1954 part two [crosstalk 00:16:15]-

John Howard:

I mean, the great thing in the UK, of course, is if they don’t pay the rent, you can get them out within 21 days, [inaudible 00:16:20] .

Stefano Lucatello:

Yeah, we can’t do that abroad. You have to go to go to court, but it’s not a 21 day procedure.

John Howard:

No, okay. That’s interesting. Very interesting.

Stefano Lucatello:

[inaudible 00:16:29].

Lucia France:

Great, thank you Stefano, thank you for that. Okay, Paul, your last question for today is here. So, Paul, I’ve met you and John at the Property Summits event which I thought-

Paul Mahoney:

Oh!

Lucia France:

Good, so, that’s good. I took your advice and I bought my first buy-to-let property. I could just about stretch to buy another one. Do you think I should do that now or wait another year or so when I’ll have more funds available?

Paul Mahoney:

Okay. Well thank you for attending Property Summits for a start, I assume they attended the in person day that we did. I thought it was a great day and we got some great feedback.

Lucia France:

[crosstalk 00:17:07].

Paul Mahoney:

And we are doing some more of those via webinar at the moment. So if anyone’s interested, feel free to look that up. So, should they stretch themselves? I think [inaudible 00:17:19] limited information for me to give a proper answer, because it depends what we’re talking about. For example, it’s a bit of a subjective view, what they’ve said, if that makes sense. Because some people would think of 100,000 pounds as not enough, and some people would think of that as too much for one property investment, if that makes sense. Sometimes we meet with clients in London and they’ve got half a million quid in cash and they’re are asking us, “Is that enough to get started?” Whereas other people have got 20 grand cash and they think they’re loaded. So, I would need a bit more of an understanding, but let’s just use some examples.

Paul Mahoney:

I don’t think there’s all that much worth buying in the UK for buy-to-let purposes, less than about 100,000 pounds. Now, some people will disagree with me on that. So as far as taking all the right due diligence boxes, quality properties in good locations, having the right sort of target market that’s going to pay you rent, easily rentable, rather than cheap properties in cheaper areas that often have higher vacancy rates, it’s harder to get your rent, more maintenance, all that sort of thing. I don’t think there’s that much work under 100 grand and even then you’re a little bit limited, in my personal view. Therefore, the minimum starting cash to buy a property really that’s worth buying in the UK would be about 30,000 pounds. Ideally 40,000 plus, I’d say, because the options really open up there. So I suppose that hopefully answers their question, depending on how much funds they’ve got. But yeah.

Paul Mahoney:

I think that if they are limited in, in whatever way that might be, that it probably is worth waiting to get a bit more cash to get a better property rather than just buying property for the sake of it.

John Howard:

Yeah. I mean, I think, I think you’re right, Paul, especially at the moment, I don’t think there’s any massive rush to buy a second one if you’ve just about got enough, [inaudible 00:19:27] wait a little bit longer so that we know what we think the market might do next year for investment market. And the other thing I would say is, I think, you’re absolutely right about the values because, yes, we know we can all go and buy a terrace house at 35 grand somewhere, 40 grand somewhere, but there’s no capital growth in it and what you’re looking at is a good property, in good condition, in a decent area with capital growth. And the capital growth part is just as important to me and I know other people disagree probably… Just as important as the yield.

Paul Mahoney:

Yeah, and on that point, just to kind of explain that slightly further. Very often we have people that come to us who are just starting out and start out focusing on yield and the biggest limitation of that is the only way you grow income through yield focused properties is by injecting more capital or more cash. So it’s a very slow way, unless you’re earning a lot of money from another source, it’s not really the right strategy for you if you’re just starting out and wanting to build a portfolio. Whereas investing for capital growth and using the income to support the debt is going to be a much… It may not seem like a quicker way because it probably will take you a decade to build a decent portfolio that way, but it will be quicker than saving the cash to invest, if that makes sense.

Paul Mahoney:

So a simple example is if you take 50 grand and buy a 200 grand property, and that increases in value by 5% per annum and gives a half decent yield, you should be able to re-mortgage that property and get back your initial cash every three to four years. So you start with one, you then have the ability to buy a second one in three to four years time, then in three to four years after that, you have the ability to buy another two. So you go one to four and within 10 to 12 years, based upon average returns, you should be able to have about eight properties just from your initial investment. [inaudible 00:21:31] self perpetuating, it’s what I refer to in my book as the snowball effect. And some people view a decade or 12 years as a long time, but actually, when it comes to property investment, it’s not a long time. And of course, if you’re injecting more cash every year to that, it has a multiplying factor.

Lucia France:

Yeah. And Paul, can I just clarify that a couple of things, we talked in a previous episode about mortgages being good loan to value at the moment. So would that be a reason that he should possibly stretch himself? And secondly, you were talking about the difference between 30 and 40 K as a deposit, not as in to buy a property, right?

Paul Mahoney:

Yeah. As a deposit, correct. Yes [crosstalk 00:00:22:14]-

Stefano Lucatello:

Unless you’re buying [crosstalk 00:22:14].

Paul Mahoney:

…[crosstalk 00:22:15] grand [crosstalk 00:22:16]-

John Howard:

Unless your buying [inaudible 00:22:18], you get a mansion for that.

Stefano Lucatello:

You buy the whole road for it.

Paul Mahoney:

If you have [crosstalk 00:22:23] pound, you’d be able to buy a property worth about 100,000 once you account for your deposit and costs. Whereas if you have 40, you’d probably be able to stretch to about 140, 150. So, it’s a pretty big difference in the value of the property that you can get.

Lucia France:

Yeah, [crosstalk 00:22:39]-

Stefano Lucatello:

Paul, you joke about that but some years ago, a London [inaudible 00:22:44] investor bought a whole street for 20 grand and he didn’t even bother coming up. He just bought it and he had it all redone up and let it out to DSS clients.

Paul Mahoney:

In Liverpool they were selling terrace houses for a pound at one point.

Stefano Lucatello:

Wow.

Paul Mahoney:

There was terms and conditions to it but you could buy it because there were streets there that were derelict. So to bring them back, they were selling them to people for a pound and I believe they had to live there for five years at least and do some renovation works.

Stefano Lucatello:

Yeah, [inaudible 00:23:14] places where they have 12 months to redo them and I have a client who did that. But have you noticed lots of the military, the ex-military, are now buying up these old houses? It’s been done in whole [inaudible 00:23:26], they’ve done it in Liverpool, they’ve done it in Manchester [inaudible 00:23:29]-

John Howard:

Yeah, they have.

Stefano Lucatello:

…and it’s good use of old properties that are derelict in not so good areas which have been regenerated now.

Lucia France:

Yeah.

John Howard:

Also in Italy, I saw a program, I don’t know where the village was, but in Italy they were trying to attract young people to a village in Italy because everyone was over about 80 years old, weren’t they?

Stefano Lucatello:

Yeah, it’s happening now. I was reading about it just yesterday, John, it’s in Sicily and they want to create what’s called a happy village for, from everything I read, people over 60 years of age, both Sicily and Sardinia now have got these projects on because many of the properties that are there are not being kept properly, they’re empty and you can get some fantastic value properties now for about 100,000 euros, 150,000 euros worth much, much more.

Lucia France:

Fantastic. Thank you very much there for the answer. We’ve not got very much longer to go. So, I’ll ask for some slightly speedy replies to these questions. So John, your next one is.

John Howard:

Yes.

Lucia France:

[crosstalk 00:24:34] opportunity to buy some land that the council say will be included in the next 10 year plan. Does this automatically mean I will get planning permission for houses? Any advice? Much appreciated.

John Howard:

Well, it’s a very, very good start. So what the counselor is saying, over the next 10, 12 years, whatever it might be, they are planning to allow the zoned areas to be built on. It doesn’t mean you’ll get planning the day the 10 years start, it might be at the end of the 10 years. So you’ve got to be careful. But in principle, it’s a really good start and if that is going to happen, I would make sure wait until it’s happened because lots of agents and people say, “Oh, it’s going to be in the next 10 year policy or the next 10 year plan.” If you like, for houses. And of course, guess what? It isn’t any. So, don’t just assume it’s going to be. If you have to buy it before the 10 year plan is out, then the least you should be doing is having [inaudible 00:25:37] local authority, I would suggest the chief planning officer, and I would find out exactly what the score is from them and made sure, if there’s a draft plan out and it’s in that, that gives you some confidence. But you really need to know it’s definitely going be in the next 10 year plan. Definitely. Because if it isn’t in there, you know, probably, you’re not going to get planning for over 10 years.

Lucia France:

It depends how long you have to wait, really. Would it be worth trying to ask them to get planning permission and maybe that would be [crosstalk 00:00:26:09]-

John Howard:

I don’t think you’ll get it if it’s going to go in the next 10 year plan, I would’ve thought it would be turned down now on the basis that they don’t need the planning. They don’t need it. They’ve got enough in the pipeline. So just be careful, talk to the chief planning officer and take it from there.

Lucia France:

Great. Okay. Thank you very much. Stefano, moving on to Portugal now. Been all over Europe today. So Stefano, I’ve heard you say on previous programs that Portugal is the most expensive of the European countries, but if I’ve got a limited of 100K, are there still places in Portugal you could recommend for me to have a look at it?

Stefano Lucatello:

Yeah, absolutely. Portugal is a beautiful place to invest. Most people unfortunately think that Portugal is the Algarve in the South. So thinking of Villa Mura and places like that, which is where many rich people go and the Algarve stretches from Spain all the way West. And it’s not the best part to invest because there are good places as well as bad places to invest there. My view is, if you’ve got any forethought you will go to the North, you’ll go to the Douro part of above Portugal, above Lisbon to the North. I mean, it’s got some fantastic places. Like North of Spain, many people don’t know the North of Spain like Gascony and places like that, but why, because they just don’t go. They think of Spain being Marvina, Malaga, where ever.

Stefano Lucatello:

So, this comment goes for both Spain and Portugal, go to the North, go to the Porto regions, go to the countryside, not necessarily to the beaches and you get some fantastic value. There’s loads and loads of derelict properties or partially renovated property that you can buy for that sort of amount of money and you will get much more land than you would if you were to invest 100,000… You probably won’t get very much nowadays in the Algarve for 100,000 anyway.

Stefano Lucatello:

The other place you could go to is Lisbon, of course. Lisbon is a beautiful weekend retreat now. It’s very, very famous, very beautiful and there are still places in, to use the Paul’s description, which have not been described and not have the ripple effect yet, where you can buy and it will be on the edge of development in the next few years and your property will go up in value. But certainly, I would go to the North of Portugal where you get a lot more for your value.

Lucia France:

I take it-

John Howard:

The Silver Coast is lovely. The Silver Coast. Up [crosstalk 00:28:37]-

Stefano Lucatello:

[crosstalk 00:28:39] Silver Coast-

John Howard:

[crosstalk 00:28:39].

Stefano Lucatello:

The Silver Coast is… Yeah, it’s-

John Howard:

Beautiful.

Stefano Lucatello:

[crosstalk 00:28:43], Trafalgar and sort of going around there is beautiful. But it depends on what you want. If you want a shack on the beach, then there are shacks on the beach to be found in the South Portugal beaches. But I would say go to the North because you get much more for your buck.

John Howard:

Yeah.

Lucia France:

And Stefano, I guess, just advising cautionary side here as well. If this person was looking to sell again soon, maybe that might not be the best option for them?

Stefano Lucatello:

No. I mean, if the intention is to buy and sell and create a quick profit, then I wouldn’t go there, I’d be going to a city center. I’d be using more the analogy that Paul does, which is go and invest in apartments which are mainly new, and there are new developments happening in all the cities in Portugal. So, go and investigate that. But do you due diligence quite properly. In depth.

Lucia France:

Absolutely. All right, well, that’s it for today. Guys, thank you so much everybody for watching. If you’d like to get in touch, please do email us. Ask, A-S-K, @aquestionofproperty.co.uk. Or, of course, leave your question in the comments below. Thank you so much to Paul Mahoney, Stefano Lucatello, and John Howard for all your advice here today. And thanks [inaudible 00:29:55] for watching. Bye everybody.

Stefano Lucatello:

Thanks, Lucia. Thank you [crosstalk 00:29:56].

John Howard:

Bye-bye.

 

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