5 Tips on Buying Property in Portugal
Investors all over the world jump at the chance to include a Portugal property in their investment portfolio. The fine climate, solid infrastructure, and comparatively low cost of living all contribute to the image of Portugal as the place to own a home -or two.
Below is a list of five tips that give buyers an idea of what to expect and how to prepare for investing in this beautiful and property-rich country.
Know the reasons for buying
Before hunting for a property for sale in Portugal, investors must establish a motive for buying. Are they looking for a new home, a holiday location, or an opportunity to earn money via rental income and capital growth? The answers will have an impact on the type, price, and even location of ideal properties.
Confirm funding sources
Financing is another key consideration. After sourcing a quality property for sale in Portugal, will the investor finance its purchase using cash savings or a mortgage? Will they need to release equity in their own country or opt for obtaining a Portuguese mortgage? And once the means of financing has been established, when will the actual funds be available? If the investor is not able to afford the property for months, will rising property prices have an impact on their budget when the time comes?
Establish a buying location
If the investor plans to live in the property, they have to assess their needs. Do they want a two-bedroom apartment in Tavira, or is a medium-sized house outside a fishing village on the Alentejo coastline more to their liking? Ideally, an expedition trip to visit potential locations should be arranged before any final decision is made.
Know the local requirements
To purchase a property in Portugal, investors need to obtain a fiscal number, which is available from the closest tax office. To apply, proof of identity and a Portuguese address (the address of a friend or solicitor can be supplied in the interim) have to be shown. It is also advisable to have a Portuguese bank account, so that bills connected to the purchase process can be paid locally.
Once a property has been selected and a price agreed upon, the investor will sign a Promissory contract with the owner, pay a deposit, and agree on a date to complete the purchase. Any purchase tax must be paid before the sale is completed.
Seek professional advice
Anyone thinking about investing in Portuguese properties should seek assistance from the right professionals, namely a local estate agent, solicitor, and currency exchange expert with insights in the overseas property markets. Individually and as a group, they will help the investor make the right choices and finance them wisely, increasing the chances of a successful return on investment. Finding a property for sale in Portugal is relatively easy: making it yield healthy profits is a team effort.