Living from Rentals in Porto
If you have the option, owning assets that produce income is a better financial strategy than owning assets that generate expenses.
This is particularly true if you own a house or an apartment. Real Estate is a great investment, but it also requires a good amount of care with repairs and maintenance; property taxes and often the building fee, we know here as “condomínio” .
Renting or leasing it is the way to generate income and end up with positive cash flow after all those expenses are paid for.
If you are thinking of buying an apartment in Porto (or a house for that matter) it is an enviable way of getting yourself a place to stay in one of the most lovely and easygoing cities of Portugal and when not here, obtain a good income that will cover for any expenses and most likely provide an interesting surplus in your annual income by renting it in the short-term rental market.
In the past years there has been a significant growth in this market. Not only due to the growing tourism market, but also due to newcomers moving in to Porto to work or study.
The pandemics has put a brake on the tourism market, but not on the work market, where there is still a clear movement, with people moving to Porto and needing a temporary accommodation while they settle here.
Even though there is a seasonal decrease in medium term stays, fact is they do provide a sustainable revenue during the pandemics period.
Porto, has therefore still a lot to offer for the investor in Real Estate seeking an extra income. It is a resilient market for medium to long term stays and will recover quickly in the short term rentals, as soon as travel kicks in again. Not by chance, it has been again elected Europe’s best city break destination in the World Travel Awards