The Real Pros & Cons of Property Investing

The Real Pros & Cons of Property Investing

Investing in property has long been one of the most reliable paths to building long-term wealth. In today’s climate of shifting interest rates, evolving buyer trends, and growing global mobility, timing and location are proving more critical than ever. In this edition of Money Matters, Sasha Sharpley, Senior Real Estate and Investment Advisor at Ideal Homes Portugal, explores the broader benefits and drawbacks of property investment, with a spotlight on the Algarve. Claire Wheatley, Founder and CEO of Moving Currency, joins to discuss one of the most frequently overlooked aspects of overseas investing: currency exchange.

 

Why Real Estate Remains a Powerful Wealth-Building Tool

“Bom dia from the Algarve! I’m Sasha Sharpley, your trusted Algarve property consultant and long-time real estate expert. Welcome to another edition of Money Matters, where I explore the financial and lifestyle potential of investing in Portuguese real estate.”

Sharpley begins by framing property investment as a tangible, resilient asset class:

“Unlike stocks or cryptocurrencies, which can feel abstract, property is something you can see, visit, improve, and enjoy. There’s psychological value in owning something real—something you can walk into, rent out, or pass on to the next generation.”

The appeal of property as an investment lies in its ability to deliver dual returns:

  • Rental Income: Reliable cash flow from long-term tenants or short-term holiday lets.
  • Capital Growth: Appreciation in property value over time, particularly in desirable or emerging locations.

Another unique strength of real estate is the ability to leverage.

“With a relatively modest deposit, you can control a much larger asset,” Sharpley explains. “If the property increases in value, that gain is calculated on the full asset—not just your initial outlay.”

However, property investing is not without its challenges:

  • Liquidity: Selling a property can take time and involves legal and administrative hurdles.
  • Management: Ongoing responsibilities such as maintenance and tenant relations can be time-intensive unless outsourced.
  • Market Volatility: Economic trends, interest rates, and regulations can all affect profitability.
  • Upfront Costs: Taxes, legal fees, and commissions can delay return on investment.

“For those who plan carefully, choose their locations wisely, and take a long-term view, property remains one of the most rewarding and resilient forms of investment,” Sharpley adds.

 

Why Portugal—and the Algarve—Still Stand Out

Sharpley makes a compelling case for Portugal, and particularly the Algarve, as a high-potential market for both lifestyle buyers and investors.

 

“With its warm climate, stunning beaches, strong infrastructure, and excellent healthcare system, the Algarve has long attracted both lifestyle buyers and financial investors.”

Key reasons the region continues to shine:

  • Steady Price Growth: Coastal property values have risen 6% to 8% annually over the past five years, driven by high demand and limited supply.
  • Rental Yields: Properties in prime locations—near beaches, golf resorts, or historic towns—can yield between 6% and 12% annually.
  • Financing Access: Mortgages for non-residents are available up to 80% LTV, with rates around 3.5% to 4.5% and terms up to 30 years.
  • Demand from digital nomads, retirees, and international investors continues to grow, reinforcing the Algarve’s appeal as both a lifestyle destination and a profitable market.

 

Managing Currency Risk: The Overlooked Investment Variable

While most investors consider market trends, rental income, and property management, one crucial factor is often missed: currency exchange. Claire Wheatley, Founder and CEO of Moving Currency, explains why this can’t be ignored.

“Every property investor weighs the potential benefits—rental income, capital growth, lifestyle perks—against the risks. But one critical risk often slips under the radar: currency exchange,” says Wheatley.

“A small shift in exchange rates between making your offer and completing the sale can mean a difference of thousands, and potentially eat into your returns.”

 

How Moving Currency Helps You Reduce Risk

  • Wheatley outlines how proper currency management can protect your investment:
  • Lock in Rates Early: Secure your exchange rate in advance and avoid market swings.
  • Plan Staged or Recurring Payments: Ideal for phased purchases, renovations, or repatriating rental income.
  • Receive Personalised Advice: Get guidance on when to transfer to maximise value.
  • Avoid Bank Fees and Poor Rates: Dedicated services often offer better value than high-street banks.

“We help clients of all investment levels—from first-time buyers to seasoned portfolio owners—stay in control of their finances and reduce currency-related surprises,” Wheatley says.

“If you’re taking on the risks of real estate investing, don’t let currency be the one risk you didn’t plan for.”

 

The fundamentals of property investing remain strong, but success in today’s market depends on timing, informed decisions, and smart financial planning. The Algarve continues to offer compelling opportunities, particularly for those who manage both their property and currency strategies with care.