LOOKING TO BUY OFF PLAN PROPERTY IN PORTUGAL?

Property in Portugal attracts huge foreign investments. Property for sale in Portugal does not lay restrictions on non-resident ownership and hence allows any number of foreign investments. This factor has created a great demand for property in Portugal. The prices simply keep soaring day after day. Portuguese mortgages contribute to the hike in foreign investment by rendering financial help to investors.

One can find all types of quality property from studios to grand villas for sale in Portugal. The number of investors buying property in Portugal keeps increasing year after year. Most non residents, especially the Europeans, wish to buy their second homes in places like Algarve, Costa Azul, Alentejo and Albufeira.

Both off plan and resale properties are in vast demand in Portugal. Off plan property refers to property that is only in plan and yet to be constructed. Off plan property in Portugal is developed by property developers who are direct vendors. An initial deposit has to be made before purchasing the property while the rest of the amount is paid as the construction progresses. Portuguese mortgages also help investors in this regard. On the other hand, resale property is a used property sold by a seller. In this case, there are no developers but only direct vendors.

Generally there are certain advantages in buying off plan property in Portugal. Some of them are:

• Off plan property in Portugal can be bought for the lowest market price.
• Amount is paid stage by stage as the construction progresses.
• The property is a new development built exactly according to the plan.
• It can be built with our choice of fitments, colors and flooring.
• When the property is completed its market value will be 15% to 60% higher.
• It is good long term investment.

Since all off plan property in Portugal are bought before construction, the history and credential of the developers are important. It is always advisable to have a legal representative or a lawyer for taking care of the proceedings while buying property abroad. He can also run a background check on the property, check for the authentication of ownership documents. Professional help from structural engineers can also be obtained to oversee the construction.

Portuguese mortgages are made easily available for investors who wish to buy property in Portugal. Up to 80% of the property value can be claimed as mortgage. However, this percentage might differ for a resident and a non resident of Portugal.

Buy to let property in Portugal is term used to describe properties that are purchased only to be rented out for a fixed rental income. A number of non-residents invest on property in Portugal because of the scenic beauty of the country, its climate and location. They prefer buy to let property in Portugal as it serves dual purposes – as a second home and a property that gives good return on investment.

Advantages of buy to let property in Portugal:

• Regular source of rental income.
• Smart long term investment
• Used as holiday homes.
• Saves lot of tax.

These are some of the reasons why property in Portugal is always in high demand. They bring high return on investment. Added to this, the Portuguese mortgages make investment on property in Portugal simple and easy by rendering financial help to investors. However, one has to be careful in selecting the location and the type of property one wishes to buy. Many factors have to be considered while buying property abroad. Not all property will fetch good income. Location plays an important role in our return on investments. So, it is necessary to invest on properties which would give good ROI.