investment in rocha brava

[jlj76]

Hi,

I am considering buying a 2 bed apartment in Rocha Brava which will be primarily an investment. We really enjoyed the vibe and location of the resort.
It seems to have everything going for it.
I will probably only use it maybe a few weekends a year off season and would like it to at worst break even after paying all the running costs, but ideally maybe make a few quid to pay for the breaks.
Is this a pipe dream and all the lofty projections are not achievable?
The idea is really appealing, but my head keeps saying its probably never going to work out and I should keep on walking.
All comments welcome.

[sunman]

my thoughts;

keep renting.

buying costs purchase tax, annual maintainance charges, licences to rent it out, damp in the winter, clients peeing in you bath, pool repairs, condominnium charges,

rent twice a year, if you still like it in 3 years time then consider buying if it's still an itch that needs scratching

[widge]

Sound advice sunman from one who's been there & still got the T shirt.

[dennisg]

Well, I have no regrets having bought a quarter share 18 years ago, then selling it and buying a house outright which I have owned for the past 14 years. We only use it during the winter and rent it out through Rocha Brava from April to October. The rents cover all our maintenance and running costs and some of my winter golf fees. In view of advancing age and various other reasons we have now decided to put it up for sale through the agents on site.
I don't think you would regret buying in the long term but suggest trying a quarter share to start with.

[Mike Banks]

Sunman's comments may well be valid for him, but not relevant for Rocha Brava. If you buy an apartment on Rocha Brava, the management company will handle all the lettings as they hold the letting licence for the whole resort. Similarly they maintain the onsite swimming pools. They let out our apartment when we are not using it, and we make a small profit each year unless we incur some capital expenditure. At the very least you should break even. My advice would be to go for it.

[jlj76]

Hi Mike,
Good to hear a positive experience for a change, a lot of people seemed to have gotten burned.
Do you know any numbers on your lettings?
I have been told 12 weeks during high season is a given. And I should be able to get another 12 weeks during lower season at lower rates.

ongoing costs I am aware of so far are,
condo fees are 2000 (based on how well maintained the place is, I think money well spent)
Council tax about 450.

Do you find the free wi fi satisfactory? Though I have been told this is being updated before high season.
My understanding is that Rocha Brava offers to do the lettings but you are not obligated to use them. Both owners and agent seem to indicate this.

Regards
Jon

[Bruce Wallis]

We own a house near Rocha Brava, and from what I hear, Rocha Brava is probably the best of all the Part Ownership/Timeshare/Holiday Bond ownership condominiums in the area.

What you do need to be aware of is that once you are in there, they seem to hold all the cards in terms of rentals, charges and I am led to believe, onward sales.

Quite a few of our friends who now own their villas in the Carvoeiro area started off by owning or part owning at Rocha Brava, and none of them have a bad word about the place.

[Mike Banks]

Hi Jon
I'm at Rocha Brava at the moment, and my figures are back in UK. I'll pm you when I get home next week, and give you more detail. Further to Bruce's comments, all lettings do have to go through RB but that means you don't have to get involved in licences, cleaning etc. Rocha Brava have no control or influence on property sales.

[cereza]

I owned a property on RB and have several friends who still own there both on outright and shared basis. I can only praise the management and I can confirm that there is no interference in the buying or selling process. I wouldn't get too carried away with the number of weeks rentals outside of the kids summer holidays but the income should easily cover expenses. Lettings are best left to the management to avoid all the problems of licenses. The site is extremely well run and provides a great base for holidays. As for an investment - properties on RB follow the general market price movement so that is a personal decision but there always seems to be good demand there. I found it a very good way to get acquainted with the Portuguese property market before moving on to other areas if so desired.

[jlj76]

Thanks for the feedback guys.
I have been dealing with Ideal Homes, they seem a very professional outfit, and after querying them, they have checked and still say you are free to rent it out on your own.
Don't suppose someone who owns a property could shoot an email out to your management and query this?
They also say that a license is not required as the resort already owns one. This sounds odd if the above is true.
Ideal home is offering to market and manage the property for a flat rate of £1000 a year and includes airport transfers for all guests.

Regards
Jon

[cereza]

Sounds a bit odd to me Jon. I don't see why you need a middle man like Ideal Homes although I must admit to never having heard of them. If you want to buy on RB just go to the on site sales agent Steve Dackombe. He's a really nice English guy who knows his stuff and gets most of the properties for sale and he is independent - he will give you good advice. His office is down by Atlantic Point. As for the lettings and license issue just ask Steve or just check with the RB management ! I wouldn't just accept what they have told you without checking! The authorities are getting hot on the license issue.
Transports from the airport are easily arranged.
To check more on RB look further down this web site home page to see a section devoted to RB.

[jlj76]

I think I met Steve when I was out there viewing properties. I assumed he worked for RB management.
How can I get in touch with Steve? Might be worth shooting him an email.
I believe the split if rented via RB is 60-40, Ideal homes says with their flat rate, I will be much better off.

Cheers
Jon

[cereza]

Jon I sold my place on RB a few years ago ( all through Steve ) but obviously I'm not up on the latest situation so dont take my word as gospel but you do need to check the facts. I've sent you a pm with details .

[dennisg]

I think I met Steve when I was out there viewing properties. I assumed he worked for RB management.
How can I get in touch with Steve? Might be worth shooting him an email.
I believe the split if rented via RB is 60-40, Ideal homes says with their flat rate, I will be much better off.

Cheers
Jon

He is Stephen Dackombe, Escritorio de Vendas, Rocha Brava Apartamentos Turisticos, Apartado 1047, 8401- 908 Carvoeiro LGA, Algarve.
His phone number 00351 282 359 533. e mail camil6@world.net.pt
website. www.rochabravaproperty.com.

I can confirm that he is completely independent of Rocha Brava.
I can also confirm that a property owned on Rocha Brava can only be rented out through the management; that is the Portuguese law on condiminiums. We have always been happy with the rents we have received. It has always been let for the 8 weeks of July and August, plus Easter, and several other occasions during the better months of the year.

[jlj76]

Thanks for the info guys, I will be checking with the estate agent and Steve.
Maybe the agent meant I let it out privately, and to RB they are friends and family or something.