INVESTING IN PORTUGAL PROPERTY

Portugal’s real estate boom has been fueled by the increased interest of individuals and investors There’s a huge demand for homes in Portugal, and investors have themselves put money into the residential developments and commercial real estate ventures. One example of this is the investment in shopping malls and shopping districts. There are also a large number of entertainment and recreation facilities to support the increasing droves of tourists, like restaurants and water sports facilities.

SINGLE FAMILY PROPERTIES

Many of the investments in Portugal properties are by families who want a second home where they can spend their vacations. The properties come in every size, to suit every budget. Some are very luxurious villas, fitted with every kind of elegant fixture. Others are simple but cozy, ideal for those with limited budgets, but still very charming in their own way. The old adage that there is something for everyone really holds true.

APARTMENTS

The advantage of apartments is that it they require less maintenance and are less expensive to keep clean. They are ideal for those who want something small and convenient, perhaps a place that can act as a base for their tours, without any frills but still comfortable. Occupants include business travelers, expatriates, executives who spend several months in Portugal, professionals with long hours, or couples where both partners are working and have little time to handle housework. In fact, the apartments in Lisbon and other major countries are selling quite well.

Apartments are also affordable and practical alternatives to hotels, and small families rent apartments so they can use the kitchen and save a large amount of money on food. Sometimes groups of tourists will rent apartments and split the rent among themselves, which ends up cheaper than hotel rooms.

Others buy apartments as investment and lease it to other people. This is a very solid method of generating a reliable source of income.

HOLIDAY PROPERTY

The coastal areas of Portugal are very very popular among investors, and the demand for them have led to fierce competition for those with “prime” locations. Most buyers are interested in using the property for themselves, as a vacation destination, but then lease them or rent them out during the months they aren’t there. Unlike apartments, the key feature of holiday properties are the view and the convenient location. Most are just a few steps away from the beach and other main Portugal attractions. As such they are often a little more expensive.

HOW TO BUY PROPERTY IN PORTUGAL

As is the procedure in every other country, the first step in the process of buying real estate purchase is the creation of a preliminary sales contract. In Portugal, this is called the contrato de promessa de compra e venda. It’s important to have this document looked at by an attorney as it is a legally binding contract that determines the conditions of the sale.

The contrato de promessa de compra e venda is signed before a notary. When the contract is finalized, the buyer of the property is asked to pay a deposit, The amount is usually about ten and twelve percent of the total property value. If for whatever reasons the buyer decides not to push through with the sale, he loses the deposit that has been paid. Of course, there are cases when the reasons are perfectly valid, like when the seller can’t give a title. In these circumstances the deposit is returned in full, but to be sure, the contract must state the instances when this will happen.

But when the seller decides to renege on the sale, perhaps offering it to another buyer, then he pays the penalty equal to twice the deposit placed by the buyer in the first instance. It’s a level of protection that isn’t found in that many other countries

The buyer must also take out a “Fiscal Number” from the local Tax Office, which is a fairly easy process that just requires filling out a form. Processing is very fast.

Portugal, the seaside paradise, is located at the west of Spain, on the coast of the Iberian Peninsula. It is just south of the Western Europe and is bordered by the Atlantic Ocean. It is composed of various islands.

There are many opportunities to invest in Portugal real estate, and you will find several real estate agencies in Portugal that who can help you find the type of property you want and need.

Some people are looking for a quiet retirement home, very quiet and serene, with fresh air and easy access to medical facilities. Others want a holiday home, near the entertainment and party scene, and with several restaurants and discos that can be accessed with little inconvenience. Others are interested in the golf courses. Still others want to live near the beach. Others want a property that will generate a lot of money when it is resold or rented out.

Whatever the reason for buying property in Portugal, real estate agencies and real estate brokers can certainly direct you to what will best suit your preferences and your budget. They have studied the market very well and know which properties are available. They are also informed of real estate industry trends and know which locations are likely to boom in then next few years, or what would affect the possible fluctuations in the real estate prices in Portugal. And though you may be temped to scrimp on their commissions, it is actually cheaper to go to a real estate agent because his knowledge of the market can help you locate the desired property for the cheapest price.

Real estate agents also know how the prices of real estate property can vary per region. They can correct misconceptions and give a more realistic picture of how much you need. For example, it is generally more expensive to buy real estate in the coastal resorts of Portugal with the Algarve, found in Portugal’s south. This is one of the most popular locations and the demands have hiked up the price. However there is also a large selection of purpose built complexes, which may be cheaper than the villa or the stand-alone home.

Real estate agencies and brokers have access to a very comprehensive date base. From this information, they can direct people to properties that suit the buyer’s criteria: location, accessibility, size, price, resale value, rentability, and even design theme.

There are many different kinds of property that you can invest in. The choices are so numerous that some people become a little confused. “Which one should I buy? What will work for me?” They are not sure what to invest in and can send mixed signals to their real estate agent, which will prolong the selection process and make it more exhausting and confusing to everyone involved. Here is a general guide on the seven types of properties.

One kind of property is the lakefront property. You have direct access to the lake, and can go boating, swimming, and other water sports. The value of lake front property almost always increases, especially when the area around it is developed. One advantage of lake front property is that it is very relaxing and an ideal location for a retirement or a vacation home.

Lakeview land is not as expensive as lakefront property since you don’t have direct access to the lake. Usually the private marina and boat dock are a short distance away from the house, requiring you to take a walk before you reach the lake. However, it is a minor sacrifice to make, and you will definitely see a return of investment especially if the development of the area is good.

Golf Course property is very popular among golf aficionados. Normally developers create a gated community or subdivision which allows privacy an exclusivity. Only residents have access to the golf course.

Gated subdivisions are very exclusive and private. The residents are not only provided with 24 hour security but also have access to exclusive amenities like a club house with exercise, entertainment and dining facilities. Generally the property prices here are quite high but very reasonable given the lifestyle it provides its owners.

Ranch land is very big and expansive. You have acres of land near a big town and the best part is that your land goes up in value as property becomes more and more scarce. However ranch land needs a lot of maintenance and you will need to invest in a crew.