UGLOBAL . COM
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A practical investment case of a hotel project in the Algarve region of Portugal effectively demonstrates the feasibility and advantages of hotel-shared ownership investment in the
“ A practical investment case of a hotel project in the Algarve region of Portugal effectively demonstrates the feasibility and advantages of hotel-shared ownership investment in the country ’ s golden visa program .
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country ’ s golden visa program . Algarve is the most vibrant region in the Portuguese tourism market , accounting for two-thirds of the entire country ' s tourist population .
immigration applications ? Is the benefit exclusive to immigration applicants ?
Shared ownership is a broad concept , and some countries or regions have established formal regulations or policies to govern shared ownership models , making it easier for buyers to complete property purchases . It is a home-buying model traditionally targeted to buyers unable to fully pay the entire property purchase price to acquire partial property ownership .
The concept is recognized worldwide . For example , Shared Ownership is a government-supported home-buying plan typically provided by UK property developers , real estate , or housing associations . In Australia , shared ownership is a home-buying model called Shared Equity . There ’ s a shared ownership model called " Incentivo ao Arrendamento Acessível ," which translates as " Affordable Rental Incentive ," in Portugal .
The scope of application for the shared ownership model has expanded in Portugal . The country is an attractive destination for residential , commercial , and other real estate investments with a flourishing tourism industry , picturesque coastline , rich history , and culture .
In 2019 , Portugal received 27 million tourists , with the Algarve region alone welcoming 20.7 million . The area holds a significant share of Portugal ' s tourism and hotel market . An existing quasi-five-star hotel in Algarve , affiliated with a renowned hotel brand , openly recruited investors with a limited quota to invest € 280,000 per share for shared ownership of the hotel . The developer provides investors with a collective exit mechanism , committing to seeking bulk buyers through reasonable business means within the stipulated timeframe .
BENEFITS AND CHALLENGES OF SHARED OWNERSHIP IN PORTUGAL ’ S RBI PROGRAM
Some may question the option of shared ownership , especially in significant actions such as asset management and sales , etc ., involving numerous investors in collective discussions and voting to make decisions . This process requests severe trust and alignment of shared visions among various parties , with subjective influences potentially playing a significant role , making it less conducive for individuals pursuing straightforward property investments .
However , the collected group of investors who prioritize immigration status over the investment reduces the impact of subjective influences on shared ownership investments . With all the investors sharing common goals , completing investments , obtaining shared ownership certificates , and submitting immigration applications seamlessly , it would be a successful ending with obtaining residency in one go while , at the same time , the investment return becomes a bonus .
Being a socially oriented activity , hotel operations involve the government , developers , investors , citizens , and others , garnering greater regulatory oversight and attention .