Testing a different business model to Rural Properties’ standard ‘buy, renovate and sell’, a derelict cottage was selected for development as a short-term rental property due to its location near Portugal’s famous ‘Route 66’.
When a call came through about a tumble-down cottage at the head of the stunning Mega valley, to the south of Castanheira de Pera, the price was attractive, but the paperwork was certainly a challenge. However, the old mantra of ‘location, location, location’ held true as the tiny cluster of houses that make up the hamlet of Horta Cimeira are an easy detour from perhaps the country’s best-known road trip route.
Descendants of the cottage’s original owner lived in nearby villages and an elder was designated as chief spokesman and signatory for a group of five. A long-retired Sr Manuel had been raised in the cottage and could attest to the fact that it was a family property which nobody had formally registered.
The wooden interior of the building was close to collapse, eaten away by damp, bugs and time, but the thick, stone walls were in good shape. Clearly the acquisition price would have to reflect the need for a complete internal rebuild and new, insulated roof.
As a rental proposition, the house lies only 150 metres to a beautiful and underused river-beach and not far to the N2, or ‘Route 66’, that stretches 739 kilometres from Chaves in the north of the country to Faro in the south.
For drivers or motorcyclists seeking a couple of days’ respite midway through their N2 marathon, or for holidaymakers looking for the calm of the countryside only 15 minutes to a town, this is an ideal haven.
A purchase price was agreed, and an advert was posted in the local newspaper, giving opportunity to anyone who had a claim, to come forward. When the statutory 30-day period was over without incident, a justification and deed was signed.
Stage one was to remove and replace the roof and to form a solid concrete first floor that served to tie in the four walls.
The cottage then was advertised specifically as an Alojamento Local, (short-term rental) property, with the buyer paying a 25% deposit to reflect the high degree of personalisation that was on offer.
This appealed to a young Dutch buyer who was delighted to specify much of what he wanted in terms of interior finish, kitchen layout, bedroom configuration, etc, but even more delighted with the property’s location in the stunning countryside where the Pedrógão Grande and Goís municipalities meet.
The use of video and WhatsApp made renovation progress reports easy and, when the buyer arrived from the Netherlands to check on his asset, all was ‘as expected and on target’ rather than there being any nasty shocks.
With the cottage now nearing completion, many locals already have expressed delight that someone has taken over the old place and that it soon will have a new role.
The ‘social impact’ of rural development is real. When someone renovates or buys a renovated cottage, local shops, restaurants, and businesses have an increased turnover, visitors become attuned to an area and some later buy properties for themselves. Word of mouth from happy holidaymakers helps increase Portugal’s international visibility and many locals, like Sr Manuel, admit an uplift in spirit as crumbling eyesores become usable properties.
Tourism, second home ownership and a growing demand for a primary residence in Portugal’s interior are bringing new life to old buildings, one by one.
A significant percentage of countryside and village ruins now are beyond saving but materials often can be recycled. It’s gratifying when an original stone wall is sturdy enough to be reused as the start point for a more modern and energy-efficient home.
Direct investment in funding such property developments is daunting for many, especially if the investor is based outside the country, but by involving a specialist company, both property investors and property purchasers can benefit from the opportunities on offer.
As for Sr Manuel, he said he wishes that he’d had the money to rebuild his old home but is delighted that it now stands proudly with a new coat of paint and a happy new owner.
By Paul Rees
The author runs Rural Properties, an innovative business that invests in the Central Region, buying, renovating and selling properties. For investment enquiries: www.rural-properties.com or contact info@rural-properties.com
