Buying Property in Portugal
Property investors are typically interested in properties that can provide a high rental yield. The best buy to let properties are often situated in or near to Portugal’s major resorts such as Vilamoura or Vale do Lobo and because of this the amount of capital available to the property investor, or their ability to service a loan, will be an influential factor in the buying process. This is because there are large differences in the prices of property, based on their location.
Ideally a property bought with rental in mind will be close to local tourism centres, have good transport links and be situated near to the beach or golf course. Security is also a factor to bear in mind as is access when renting to elderly or disabled tourists. If selected carefully, the buy to let investor can be assured of a good rental income from their property, especially in regions such as the Algarve. Southern Portugal now works as a “non-seasonal” tourist destination, with rental income achievable throughout the year.
Families looking to buy property with a view to relocating to Portugal will need to consider a number of additional factors. A family with children of school or pre-school age will need to consider the proximity of local international schools. These schools often teach to the syllabuses of Cambridge or Oxford and use English as their primary language. An international school facilitates the easy entry of Expat students into the Portuguese education system and avoids the culture shock factor associated with attending a State school where lessons are exclusively taught in Portuguese. International school fees vary in Portugal and a reputable property agent should be able to help families with this type of detail, as well as the obvious property related issues.
A family moving to Portugal would do well to find local Expat centres where residents who have already been through the relocation process can advise on all subjects Portuguese. The best banks, shops and car dealers are all things that can be ascertained by simply talking to someone who has already been through the relocation process and who knows how to avoid associated pit falls.
An ever growing number of people now look to retire to the sun and Portugal is an obvious choice for many because of its large Expat communities and modern democracy. Elderly couples may need to consider the proximity of services that are important to them such as clinics and hospitals that work with international health insurers. Their final choice of retirement property may well reflect such needs and a good property agent should be aware of locations that are ideally suited when it comes to health care, as well as other important factors such as shopping and leisure.
Whatever the motive for buying property in Portugal, the buyer will need to contract a licensed real estate agent to represent them through all areas of the buying process. Only a government licensed real estate agent can offer the buyer peace of mind that everything from registering the property with the local Land Registry to applying for a fiscal number will be dealt with correctly. Licensed real estate agents in Portugal must show their government license number on their websites by law, so any “would be” property buyer would do well to verify this before contacting an agent with a view to purchase.
Tags: Portugal, Property, Real Estate