Why I Bought a Historic Mansion in Northern Portugal

Why I Bought a Historic Mansion in Northern Portugal
Caminha, where Portugal’s history meets coastal beauty.|©iStock/vicvaz

Once viewed as the "poor cousin" to neighboring Spain, Portugal has in recent years become one of the world’s most popular destinations among vacationers, expats, and real estate investors.

But in the rush to the southern coast of the Algarve and the cities of Lisbon and Porto, the region of northern Portugal has been overlooked… and seriously undervalued.

And that spells opportunity… I’ve been repeating this message for well over a year now to members of my Real Estate Trend Alert group. I’ve been screaming it from the rooftops… pounding the table about it… ever since I first scouted the coastal town of Caminha in the far north of Portugal.

And I’ve put my money where my mouth is…

Late last year, I bought a historic property in this "undiscovered north."

Even for a seasoned international real estate investor like me, that’s not something I say often!

My new home is a 5,000-square-foot mansion a short drive from the center of Caminha.

This beautiful house overlooks the Minho River, offering incredible views of Spain just across the water.

I can even see it from my garden—big, shaded, and private, with lemon and avocado trees and vines crawling over trellises. Pan to my left and I see waves crashing on a Spanish beach… pan a bit more and I see tides rippling onto a golden-sand Portuguese shore.

Inside, this historic home has been lovingly and meticulously restored…

It came with historic furniture and antiques (original pieces brought over from Brazil with the first owners at the end of the 1800s). Upstairs, there are three large bedrooms. And on the top floor is a spacious attic that I plan to use as my office. It has a balcony with stunning views out to the river.

Ronan’s stately manor is a dream home… in a region set to soar.
Ronan’s stately manor is a dream home… in a region set to soar.|©Ronan McMahon

For the past nine years, the home had been a Spanish couple’s labor of love. Now they need to move back across the border to Spain.

This place is like a dream and a gift at the same time. As I say, it spans around 5,000 square feet. I got it for around €410,000 ($469,690 USD). That works out to €82 ($93) per square foot.

It would cost at least three times what I paid to build this home. I’m not telling you all this to brag (though my wife and I are excited to take ownership and stewardship of this incredible piece of Portuguese history).

I’m telling you because this demonstrates the insane value you can find in this part of Portugal.

I plan to use the attic as my office when I’m staying at this house in Caminha.
I plan to use the attic as my office when I’m staying at this house in Caminha.|©Ronan McMahon

Over my career as a real estate scout and investor, I’ve completed dozens of real estate purchases across multiple continents. I’ve rarely, if ever, been as excited as I am about this one.

The lifestyle on offer with this home is incredible. There’s the weather, the culture, the beaches, and the hiking… the historic town center of Caminha, with its restaurants and cafés… the easy access to Spain just across the river…

I’m looking forward to spending lots of time here (as you read this, I’ll be in Caminha overseeing some minor house renovations my wife and I have planned).

But this home is not simply a lifestyle play. There’s also huge investment potential.

Caminha and the surrounding area boast pristine soft-sand beaches… rich history and culture… and magnificent food and architecture. Basically, all the elements that make destinations to the south so appealing.

Caminha sits at a strategic and breathtaking point—right where the Minho River flows into the Atlantic, forming the natural border between northern Portugal and Spain.

River-mouth towns like these were historically trading hubs and defensive outposts, built to protect the interior from raiders. Forts and harbors were established at these strategic points, around which towns flourished.

Many grew wealthy during the Age of Discovery (c. 1415-1610), when Portuguese navigators opened sea routes to Africa, Asia, and the Americas, transforming Portugal into a global empire. Today, towns and cities north of Porto—such as Caminha, Viana do Castelo, and Ponte de Lima—are stunningly beautiful and rich with opportunity, blending their storied past with a thriving present. That wealth lingers in these towns today… in the ornate churches and grand buildings that occupy their Old Towns.

As you wander Caminha, history surrounds you. You’ll pass the remnants of the medieval walls, the 15th-century Igreja Matriz, and the striking 13th-century Torre do Relógio, still keeping watch over the town square.

The gated entrance to my new home and the view of the rear of the house from the back garden.
The gated entrance to my new home and the view of the rear of the house from the back garden.|©Ronan McMahon

And yet, this isn’t some forgotten relic of the past.

Over the past few decades, Caminha has undergone a quiet renaissance. Properties that once stood crumbling and neglected have been meticulously revived. Today, they’re home to elegant cafés, boutique hotels, galleries, and stylish eateries.

This is a town firmly on the up—and it shows.

One of Caminha’s biggest draws is its surrounding natural beauty.

A sweeping riverfront boardwalk meanders along the banks, leading to a stunning sandbar. Just around the bend lies Camarido Beach, which opens onto a vast Atlantic vista. Behind it all, pine forests offer shaded walking trails and campgrounds. And across the river—just a stone’s throw away—is Spain.

It’s hard to imagine a more enchanting setting than this.

My focus right now is on Caminha, but there are other destinations in this northern region that similarly have amazing potential, like Ponte de Lima, an upmarket town located inland along the River Lima in a stunning, verdant setting. There’s a greenness and abundance to this area that’s unlike anywhere else I’ve been… the flowers, the vines, the forest…

Or Viana do Castelo, with its glistening white-washed buildings and red-tiled roofs that run down to a modern waterfront on the north banks of the river mouth…

Or the wealthy enclave of Esposende, a historic coastal town with its wide palm-tree-lined boulevard, offers a cycle track that leads to a wind-swept Atlantic beach. It’s overlooked by the 17th-century Fort of São João Baptista and the towering red lighthouse that sits beside it.

Right now, this region is virtually unknown to foreign tourists, expats, and second-home owners. And because of this, real estate prices are astonishingly low in comparison to popular coastal destinations to the south.

Below are examples of property listings (active as of this writing)…

  • In the center of Caminha is a four-bed, three-bath apartment with a kitchen, sun room, and laundry room. There are river views from the top floor. The interior needs some modernization, but the listing price is €150,000 ($170,375). See the full listing here.

  • About six miles outside of Ponto de Lima is a two-bed villa with one bathroom, a fully equipped kitchen, and an independent annex. From the terrace, there are views of the surrounding countryside. There’s also a ruined building on the property that has the potential to be renovated into more living space. Listing price is €198,500 ($225,460)… see it here.

As well as the incredible real estate value this region offers, there’s another advantage to buying here.

Financing is readily available to non-resident foreign buyers in Portugal. For my new home in Caminha, I got a 25-year mortgage with a five-year fixed rate at just 2.9%. My annual property tax bill will be no more than €320 ($362) per year… a tiny number for such a large property.

I’ve been keeping my eyes open for an off-market deal in this part of Portugal that I can bring to members of my Real Estate Trend Alert group. And I will continue to do so. (To be the first to hear about any opportunities I find in Northern Portugal and elsewhere, you need to be a RETA member… all the details for joining are here.) But it’s challenging.

As of right now, communities here are small, which means developers aren’t building at a big enough scale to bring the RETA group-buying power to bear. Also, the best opportunities are older resales.

But properties at these prices won’t be around forever.

This part of Portugal has stayed off the radar, but now a Path of Progress is moving north.

Every time my team and I have returned to scout this region, we’ve seen more historic buildings being restored… more work being done to rejuvenate town centers… more real estate projects aimed at wealthy investors and second home owners…

Very soon, this region will be discovered. This is the region where tourists and expats will go next in Portugal. And when that happens, I anticipate prices will soar.

That’s why I bought my historic home here.

And why now is the time to act.

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