Portugal’s Undervalued Coast… and Is it Time to Buy in Argentina?

◼Alan U. asks: Hello Ronan, I’m interested in buying an investment property in the Algarve region of Portugal, with hopes of maximum rental income and some capital appreciation. Which cities would you recommend? I am looking to rent as many weeks out of the year as possible and would vacation there on the open weeks. Thank you.

◼ Ronan says: Hi Alan, I’m afraid to say that unless you have a time machine, the window for getting a great-value investment property in the Algarve has largely passed.

Dig deep there and you may be able to find a good one-off deal. But such is the demand in the Algarve that, on average, prices have been pushed to a very high level and deals that offer strong rental yields and capital appreciation are rare indeed.

Here’s what happened…

For decades, the Algarve was one of Europe’s premier beach destinations. But over the past 10 years, it has evolved into a year-round destination for retirees, young families, digital nomads, and work-from-anywhere professionals. The traditional 10-week summer high season is a thing of the past.

As a result, the region’s international airport is struggling to handle the influx of visitors. There’s now a critical shortage of inventory and a soaring demand for real estate, and as a result, resale and rental prices are at historic highs.

But that doesn’t mean there isn’t still opportunity in Portugal, though. Far from it. You just have to know where to look (be sure to read Market Watch, later in this issue).

As places like the Algarve have exploded in popularity, my team and I have been looking elsewhere in Portugal for opportunity. And we found it, in northern Portugal.

The coast north of Portugal’s second city of Porto is stunningly beautiful, yet it remains overlooked and undervalued. All along this coast, you’ll find “hidden” destinations where you can enjoy all the amazing lifestyle benefits of this incredible country—excellent food… soft-sand beaches… rich history and culture… glorious weather… But the prices can be mind-blowingly low in comparison to destinations to the south.

This region won’t stay under the radar for long, it will be discovered by the masses, and I anticipate that prices will rise. That’s why I’ve recently bought a large historic mansion here.

My new property is in the medieval town of Caminha. Located at the mouth of the Minho River that separates Portugal from Spain, this picturesque town has a long and rich history.

But Caminha today feels modern and upmarket. There are art galleries and boutique hotels, fine-dining restaurants and wine bars. Then just outside town you have lagoon and Atlantic beaches, bucolic countryside, and excellent hiking.

If you’re interested in learning more about this part of Portugal, I’ve compiled The RETA Guide to Investing in Portugal’s “Undiscovered North” that explains the process I used to buy here, and gives you all the info and contact details you need to do the same. It’s available to members of my Real Estate Trend Alert group here. (Not a RETA member? All the details you’ll need to join are here.)

◼Uditha F. asks: Dear Ronan, I’m wondering about Argentina as a desirable destination. Now that President Milei has started his turnaround of this wonderful country, have you or your team done any scouting in Buenos Aires or any part of the country? I do understand that there is a long, long way for Argentina to go before it becomes the next hotspot destination.

◼Ronan says: Hi Uditha, you’re right to say that Argentina is a desirable location—a vast Atlantic coastline, the towering Andes, desert regions, and some of the most fertile farmlands in the world. And with a population of almost 45 million, it’s home to modern cities, quaint villages, and everything in between.

Given its extraordinary natural resources, excellent demographics, and enormous swathes of productive land, Argentina should be one of the richest nations on earth. But through incompetence and corruption, it became trapped in perpetual economic chaos, with regular sovereign debt defaults, currency crises, and bouts of hyperinflation.

Enter Javier Milei. Elected president in 2023, Milei is the most disruptive force in Argentinian politics for generations. A self-described anarcho-capitalist, he’s introduced wide-ranging reforms to shake Argentina out of this cycle of constant economic crisis, and the early results have been hugely impressive. Which raises a question: Is this a buying moment in Argentina?

Like you, I’ve been fascinated by this question. So, to learn more, I reached out to a contact. Joel Bowman is a writer and longtime resident of Buenos Aires. Joel and I go way back. We first met 20 years ago when he was the managing editor over at The Daily Reckoning with Bill Bonner (founding publisher of International Living). More recently, he was Bill’s man-on-the-ground down in Argentina, covering markets and politics from the “end of the world.”

I recently recorded a call with Joel for members of my RETA group, where we chatted about Milei’s reforms and whether economic crisis is turning to opportunity in Argentina.

Click here to view our full conversation. It’s an excellent on-the-ground snapshot of where Argentina is today.