Since Sunday, I’ve been staying at a hotel called Villa Idalina…using it as my base as I scout the incredible, opportunity-filled towns and cities in northern Portugal.
Later today, I’ll be sending members of my Real Estate Trend Alert group some details on my initial scouting discoveries, including a stunning, 4,000-square-foot period home with water views and incredible features including elaborate ceilings for €445,000. (Not a RETA member? Learn how you can join here.)
But first, here in Your Overseas Dream Home, I want to highlight Villa Idalina.
You see, this is, on a bang-for-your-buck basis, my favorite hotel…on earth…period.
Built in 1911, Villa Idalina is a six-bedroom boutique hotel near the town of Caminha in northern Portugal.
Villa Idalina is just across the river from Spain, on Portugal’s far northern border.
It’s so close to Spain that Apple isn’t sure what time zone you’re in. As I’ve been driving around this part of Portugal, my phone keeps flipping between Portuguese and Spanish time (Portugal is in the same time zone as Ireland and the U.K., while Spain is an hour ahead).
Villa Idalina is a stunning structure. You’ll see lots of historic mansions in this region of northern Portugal, but few come close to matching the stately grandeur of this one, with its wrought-iron balconies, intricate stonework, and iconic tower.
Then there’s the incredible history…
The house was built in 1911 by Joaquim dos Anjos Costa. A native to this area, he made his fortune with a construction business in Brazil, before returning home and building the villa. He named it for his second wife, Brazil-born Idalina.
Inspired by Brazilian architecture of the time and completed with Art Nouveau details, the towering structure became the symbol of this area.
In 1968, the house was sold to a married couple, Lolita and Adolfo. They were able to buy it very cheaply because Joaquim Costa’s son from his first marriage, who had no love for the house named for his stepmother, wanted a quick and easy sale.
In time, the house passed to the current owners—Lolita and Adolfo’s grandson, Andres, and his wife, Susana.
The dining room where breakfast is served to guests. The current owners have worked to maintain the original details of the house.
Andres and Susana loved the house and were delighted to take on stewardship of it, but maintenance on an expansive, historic property like this is significant. So eight years ago, they opened it to the public as a guesthouse to try and fund some of the upkeep.
What they’ve achieved since then is remarkable…
Villa Idalina as it exists today is Susana’s vision. She wanted to share the house with the world in as close to its original state as possible. To that end, she has gone to painstaking lengths to restore and present original elements of Villa Idalina, keeping the original tiles, bathrooms, even down to the colors of the walls. She also refurbished a century-old spa in one of the rooms in the basement.
As a result, visiting Villa Idalina feels like stepping back in time.
Here’s what my room looks like…
I recorded this video showing my suite at Villa Idalina. Click to view…
Susana has placed adherence to her vision of authenticity above immediate profits.
Even though the house has only six rooms, she has chosen not to rent out a modern-style room in a separate building because the contemporary design does not match the rest of the rooms and the main house, and thus is not in line with what guests might expect.
This was no easy decision.
It took Susana and her husband many years to build up occupancy before the business was making enough to cover upkeep on the house.
Indeed, rates for staying here are still remarkably low, given the standard of the house and the level of service. The rate on my suite is €225 per night, and that’s in August. It all speaks to how northern Portugal continues to fly under the radar.
The drawing room in Villa Idalina. Guests are free to use the public spaces like these.
Susana’s strict devotion to an authentic vision means Villa Idalina is not for everyone. Something she freely admits.
The rooms have no air conditioning…no TVs…there’s no elevator… Virtually the only concession made to modernity is Wi-Fi.
But when you’re running a boutique short-term rentals business, it’s not about pleasing everyone, but about identifying the subset of people who would adore the property and providing them with the perfect experience.
Given the small number of rooms, Susana has also been clever in finding other avenues to generate revenue.
On Saturdays and Sundays, she hosts a brunch that includes tours of the house. She also offers a romantic picnic experience in the tower and hosts spiritual retreats and art exhibitions.
Villa Idalina’s gardens are exquisitely maintained and are emblematic of the care taken to present this property.
As an international real estate scout, I’ve spent more nights in Airbnbs and other short-term rentals than I could ever count. And in more destinations.
I’ve stayed in everything from near-unlivable, 0-star disasters to outstanding properties in stunning settings. And I can tell you, Villa Idalina is a gold standard.
It has a clear vision for what it wants to be…a commitment to an outstanding guest experience…and it stays authentic to its environment…
These are the principles that are at the core of building a successful rentals business.
It’s good to be aware of these principles because for many of us, a key aspect of owning an overseas dream home is renting it out for short- or long-term income when we’re not using it. That’s what I do with my homes in Cabo and on Portugal’s Silver Coast. So, it pays to understand what makes a short-term rentals business successful (even if you’re using a rental manager).
I’m seriously tempted to buy a home in the style of Villa Idalina…nothing like as grand as this but from the same era and with water views.
A home like this could be offered purely for short-term rentals for groups and events, and then used as a second home at other times. Another benefit of owning a home like this it would open up house-swapping opportunities (via a platform) in incredible and very expensive locations.
I’m looking at homes today and tomorrow…I’ll be filling in Real Estate Trend Alert members on what I find.
Ronan McMahon, Founder, Overseas Dream Home & Real Estate Trend Alert
P.S. I’ll be scouting northern Portugal through tomorrow. Then I’ll be driving to my home on the Silver Coast to scout that region. Have a question for me while I have boots on the ground? A recommendation to share? A place to scout? I’d love to hear it. Share it with me here.
Here’s a question I got on a few other regions of Portugal that we’ve previously scouted…
Kenny asks: Hi Ronan, I’d love to know more about great opportunities in the Azores and Madeira. Thanks for the reports and continuing to help us who want to diversity our portfolios.
Ronan says: Hi Kenny, thanks for your question and your kind words.
Last summer, one of my senior scouts, Eoin Bassett, took a very interesting scouting trip to the Azores. For anyone unfamiliar with them, the Azores are a North Atlantic archipelago, made up of nine volcanic islands. These islands are an autonomous region of Portugal. They set their own tax rate, which keeps the cost of living broadly in line with the rest of Portugal.
The Azores are famed for their beauty and mild temperatures.
They’ve been called “Ireland in the Tropics” and “New Zealand in Europe.” Those in the know say they’re like Hawaii 20 years ago. These islands have flown under the radar as a tourist destination for a long time, but in the last couple of years, folks are starting to discover their appeal.
The Azores comprise nine beautiful islands in the Atlantic. They were once thought to be the remains of the lost kingdom of Atlantis.
Eoin described the Azores as “island life ‘Portugal style.’ These islands are an idyllic escape from pretty much anything you might want to put at a distance.”
Plus you can get there direct from New York, Boston or Toronto in five to six hours.
Eoin spent time on São Miguel, the largest and busiest island in the Azores, as well as Terceira island, a smaller and slightly sleeper place. Though many of the comparisons to Hawaii are true—both are volcanic archipelagos, both boast unique and diverse ecosystems where you can enjoy lush green forests, incredible marine life, and both are under six hours direct flight from the U.S.—one area where they differ is the cost of real estate.
In the Azores, Eoin found sea-view homes for under $330,000…try getting that in Hawaii.
São Miguel was discovered around 1427 and for a long time was a major producer of oranges.
On that same trip, Eoin also scouted the island of Madeira, known as “the Pearl of the Atlantic.”
He said: “I was expecting perhaps a Portuguese version of a Spanish Canary island…but Madeira is different. It’s got old-fashioned class. Strolling the capital Funchal I kept having flashbacks to time I’ve spent in the glitzier parts of European royal resorts. Marbella in Spain, Biarritz in France…”
Funchal has been welcoming wealthy tourists since the 18th century. It’s a sophisticated and walkable place…if you don’t mind hills.
Madeira doesn’t have the beaches of other warm-weather destinations, but it does have high-end appeal, with Michelin-star dining, world-class golf, and luxurious resorts. And with that, comes higher real estate prices. And demand is high too. In the capital of Funchal, Eoin toured two-bed resale apartments listing for €600,000-plus, though he also saw more affordable options on Maderia.
Eoin compiled everything he uncovered in the Azores and Madeira in his full scouting report for members of my Real Estate Trend Alert group. (If you’re not yet a member, but would like access to the report, you can sign up to become a RETA member here.)
To me, the Azores seems like one of those places that just looked to be the best of multiple worlds. Like Ireland but with better weather…like Hawaii but without the crowds and sky high prices…like Portugal but away from it all. I’m keen to explore these parts of Portugal myself and to drill down on the best way to maximize the opportunity there.
Your Daily Dream Home
Munkfors, Sweden
This charming two-bedroom villa starts with an entrance hall with underfloor heating on the ground floor. There’s also a newly renovated kitchen with a separate dining area, and a living room adorned with built-in bookshelves and a wood stove.
The upper floor houses a hall with balcony access, two bedrooms, and a newly renovated shower room with underfloor heating. The property includes a large L-shaped wooden deck at the entrance and patio access from the dining room. Modern amenities such as fiber internet and a district heating system (not currently connected) have been installed. A basement provides additional storage.
The home is located in Munkfors, a small town in western Sweden. Munkfors is surrounded by dense pine and spruce forests. The area features a mix of hills, lakes, and river valleys, creating a serene Nordic wilderness setting.
The town’s architecture reflects both traditional Swedish designs and more modern influences. You’ll find the classic, red-painted wooden houses with white trim, typical of rural Sweden. Munkfors is a popular spot for outdoor activities like fishing, hiking, and winter sports.
