Quinta do Lago Market Update Spring 2009By Kerstin Buechner Dias • Jan 14th, 2009 • Category: Lead Story
A clever man has said: “In property, be brave when everyone is afraid and be afraid when everyone else is being brave”.
Well, it was business as usual at Quinta Properties in 2008 – that is until October. And then things became a little quiet. While many clients stood back in shock and watched the value of their shares plummet, others cut their losses and hoped that the banks in which they parked their cash would not go belly up.
Now, that is all history and so where do we stand today? Without a doubt the number of transactions has reduced in the last quarter of 2008.
We can see a clear pattern and it may be hard to stomach, but opportunistic buyers are looking for distressed sellers. Equity rich investors and speculators are very active in the market, targeting distressed vendors. No doubt about it – cash rich vultures are the first to benefit.
Having said that, many offers are being turned down and many of our vendors actually would rather take their property off the market than sell at a discount to the price they paid. It seems many of our clients are well placed in wealth terms to weather the storm. This will also aid in supporting market prices and stop prices form dropping and as another side effect, reduce the risk of over supply.
All in all normal market forces are at work and there is by no means a state of emergency in Quinta do Lago.
As ever, it is the rarer properties at the top of the market that continue to attract most interest. Not only discounted properties but the larger, new and well located properties are in demand. Winners in the current market will be anyone with equity who can buy in the next 6 months. Forget mortgages.
We see that investors are watching the market very carefully as some unfortunate vendors are forced to sell cheap, they will make their first moves, and bring about a recovery in demand. Whether it’s the kind of demand our vendors want, is of course questionable.
We are busier than ever at Quinta Properties.
Recent events in the global marketplace have encouraged us to focus on business efficiency. We have re-evaluated all our marketing efforts and streamlined them to work more effectively for our clients in this particular niche market. Naturally we continue with local and international press and advertising, local billboards (which you may have noticed), regular targeted mailings and a sales team of 6 who aggressively continue to make every effort to find buyers for our vendors’ properties.
Our Buyer’s Guide ‘Passion for Property’ goes to print this week and we hope to have the regular fun Launch Party sometime during the February half term holiday. This is our biggest as well as our most effective marketing tool. Initial print run 10.000.
We are delighted to announce the arrival of Margarida Coelho and Frank Schmitz to our team. Frank and Margarida bring to Quinta Properties a wealth of experience in the property market.
Frank joins us from the German property market software provider and naturally, understands the need for effective communication in the times ahead. In fact, since Frank started work on our website in October we have rocketed up the Google search ratings, resulting in a clear increase in new leads. Frank is also developing new markets for us as the numbers of English and Irish buyers decrease. At heart Frank is a sales and marketing man.
Margarida has gained much experience and knowledge in the Algarve property market over the past seven years, she specialises in the intricacies of local government regulations and possesses outstanding administration skills.
Both Frank and Margarida are highly motivated and multi-lingual, and we have every confidence that they will be valuable members of our team.
Invitation to all our Vendors to Update us on your current Status
To be able to give all our vendors the best possible service in these changed times, may we invite you to let us know your current status. Perhaps you are fortunate enough to be relaxed about selling in these tricky times. However, if you are keen to sell and would accept a discounted price, to invest the funds elsewhere, please do let us know this. As mentioned we do have buyers for this type of purchase.
Please have a look at the price of your property and especially the currency in which we are marketing it. Sterling vs. the Euro has fluctuated a great deal over the last 6 months, and we want to make sure you are happy with the status quo. To avoid any confusion we would kindly ask you to notify us in writing of any currency and price changes.
Opportunities in a turbulent world
Please register with us, should you wish to be notified of any “good deals” coming onto our books this year. As many of our clients feel that property is still the best place for their money, do please let us know if you are looking to further your investments in the area. We are of course at your service! Please contact email@example.com or firstname.lastname@example.org!
As of 2009 all properties must have an Energy Certification. This is a system by which the energy efficiency of properties is graded much like your electric equipment at home, with grades from A to G. Properties cannot fail but if a property is to be sold via a local Portuguese Notary, this certification will be requested. The grade your property receives may have an impact on your annual property tax (IMI). For more information please contact your local lawyer.
At Quinta Properties we firmly believe that in turbulent times there exists opportunity so we have invested time and resources on ensuring that we are best placed to meet these challenges. The weak have been pushed aside and the strong-willed have risen to the challenge.
Please feel free to comment on this article using the comment function below.
With our very best regards,
Kerstin & Alison