Where to buy investment property? Croatia (Candy Brick, Istria) vs Portugal (Algarve)
Before you start searching for a rental property for sale, decide WHERE to buy investment property.
In this article you will find comparison between 2 options – Candy Brick in Istria (Croatia) and Algarve (Portugal).
The choice between investment property Candy Brick in Croatia and buying a house in Portugal is simple.
Is buying an investment property about sunbathing at the pool, when tourists are out? No, don’t focus on that.
So, maybe it is about listening to your colleagues from job saying big “WOW” and then, after a deep breath, how much they wish they had a holiday home as you do??
No, it’s not about that!!!
Although investments are a journey (you have heard it in this video), when you search for a rental property for sale, think rationally and base your decision on numbers.
Focus on earnings that you will get from the property over time.
If you follow this advice, you will know where to buy investment property.
And you will enjoy your decision too, also sunbathing at the pool 😉
Time for numbers!
Let’s push Candy Brick in Istria (Croatia) and Algarve (Portugal) to the wall, so you know everything!
Overnight stays (this shows YOUR PAYING CLIENTS)
You have over 27.400.000 overnight stays in 2017 in Istria (Croatia). This are Candy Brick clients!
(The number of overnight stays is published month by month by the Istrian tourist board. You can easily monitor it here.)
Now, you need to see the number of overnight stays in Algarve.
The first try didn’t work out well.
I found only old data and… and the most recent article was not very promising for an investor considering Algarve, when answering the question where to buy investment property.
That was an article about a large drop in the number of UK holidaymakers in Algarve.
Old data from Portugal makes you think that nobody truly cares about providing reliable information to investors, who want to check if Algarve can be called the best place to buy a holiday home abroad.
Let’s keep on searching using different words, limiting time frame. You need fresh batch of data!
Finally, you’re visiting the website of Statistics Portugal – that one should be the most valid one with updated information!
3 days ago (!!!) they published a document, which shows data on tourists arrival from… 2016!
OK, you don’t want to share with investors, who want to know where to buy investment property, data from 2017.
Then, we’ll make a usage of 2016 data: there were 18,1 mln overnight stays in Algarve in 2016.
(But, just tell me, how is that, that Istria releases official statistic data month by month??!).
Overnight stays: OVER 27,4 mln (Istria, Croatia) vs Algarve 18,1 mln (Algarve, Portugal)
The difference is huge, of almost 10.000.000 paid nights!!
It’s like you had almost 10.000.000 more occasions to rent your Candy Brick property in Istria (Croatia), than in Algarve.
Not bad at all, especially when investments are a “game” of numbers and experience. And with Candy Brick in Istria you have both 🙂
Another aspect to compare: AVERAGE BOOKING of almost 7 days (Istria, Croatia) vs 2,5 days (Algarve, Portugal)
You can’t know where to buy investment property, if you don’t know the average length of booking.
In practical terms (read: in $$$), while in Istria you pay for cleaning once a week or once in 2 weeks, in Algarve you pay 2-3 times a week.
Or you want people to stay in dirty rooms and dry up with used towels??!
Given the medium stay of less than 2,5 day, with a property in Algarve your fixed costs get higher and automatically you make less profit with you house.
At the same time, minimum bookings that you receive, as an owner of Candy Brick property in Istria, are guaranteed of 7 or 14 days.
Type of client who comes to Istria and Algarve and his spending possibilities.
If you have a couple of children, need to travel with a bag full of toys and a dog (sometimes with 2 and a cat too :)), travelling by plane gets just impossible.
You just choose a family-friendly place in the sun, that you can reach in few hours by your own car.
And this is Istria (Croatia), where Candy Brick villas are located.
Who spends here mostly time and book our villas? Families, mostly from Germany, one of the richest European nation.
Pictures illustrates the reasons why more than thousand words.
Distance by car from Germany to Pula, Istria (Croatia)
Family which booked your villa, leaves early morning, and they can have lunch at the terrace of your Candy Brick villa 😉
Distance by car from Germany to Faro, Algarve (Portugal):
6 days of exhausting travel with children and dog are just impossible for your villa clients who mostly have 14 days of holiday.
In fact, German holidaymakers prefer going to Istria (Croatia) with their families and not to Algarve.
Family friendly atmosphere
Istria is preferred destination by families, not only because its distance.
The second reason is that Istria is a truly family-friendly place offering high cultural activities.
This is what you get if you google “faro algarve party”
Young people (read: empty wallet), who book cheapest apartments on Airbnb or hostels in dormitory rooms.
And this is when you google “pula party”:
In almost all the pictures you can see Amfiteatar in Pula (Istria).
This place hosts concerts, theatre and other cultural events, which costs more than a single euro to enter in.
Such events attract a different than in Algavre type of client to Istria.
Families who come to Istria have high requirements for cultural activities and book accommodation in Candy Brick villas with pools and not in cheapest apartments or hostels.
Where to buy investment property: TIME FOR KNOCKOUT
Families, who come to Istria (Croatia) book mostly a very specific type of accommodation: villas with pools.
If you own a Candy Brick investment property, you target a yearly earning of 20.000 – 25.000 euro in a year, for years.
And tourists make bookings for your villa a year in advance! Often anticipating a part of total payment different months before the season!
What’s more, tourists book for 7 – 14 – 21 days, long periods. Rental, arrivals and departures are perfectly organised.
And no, Candy Brick property doesn’t cost 500.000 euro!!!! 🙂
And what about Algarve? Tourists stay mostly in hotels, holiday villages and holiday apartments.
They book rather last minute (younger and more flexible than in Istria tourists) and stay for 2,5 days in medium only.
Nobody will book your hotel room or an apartment on Airbnb a year in advance guaranteeing you 20.000 – 25.000 euro in a season!
Impossible in Algarve, but also very difficult if you buy a property from a no name sellers or via a real estate agents, who cares only about his commission in Istria!
5 Security Guarantees, which protects your interests to get 20.000 – 25.000 euro in a season
Candy Brick villas are the ONLY ONE covered by 5 Candy Brick Security Guarantees, which protects your interests.
With a purchase of a Candy Brick villa you enter a narrow circle of (9) privileged investors, who get:
- Legal Guarantee
- Quality Guarantee
- Rental Guarantee
- Local Master Team Guarantee
- Exit Strategy Guarantee
Guarantees will be explained in next articles 🙂
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In the next articles you will also find comparison between Croatia and buying investment property in: