Property for sale in Portugal

Need insurance for your Algarve property?

2008-02-06T05:03:00.000-08:00

Portugal Insurance is essential for those who wish to buy Algarve property for sale. There are both Portuguese and foreign insurance companies available for a buyer who wishes to buy a property in Algarve. Also, there are different types of insurance in Portugal. One can choose according to his requirement:

Generally a standard policy of Portugal Insurance includes four essential coverages such as:

The house or property
Coverage on personal belongings
Liability Protection
Additional living expenses, in case one is unable to live temporarily

It is highly recommendable to have insurance for the following reasons:

Property insurance for property in Algarve helps to protect your property against physical loss. It helps you to protect all your valuable products and your property abroad.
If there is any accident within the property due to the owner’s negligence, like a loose step, then the owner is liable. So it is highly essential to have insurance on buy-to-let properties or leaseback properties.
According to Portuguese law, employees should be covered for risks by separate policy known as “Acidentes de Trabalho”.
Damages caused by natural calamities such as floods, earthquakes, fire and others can be covered with the help of coverages.
Accidental damages are caused to oil pipes, water tanks, sewers, underground pipes, electricity and telephone cables, etc. Repairing may cause a great amount of time and money and hence it is better to go for Portugal insurance.
It helps to cover the theft or vandalism caused, provided safety measures are followed.
Property is covered whether it is occupied or unoccupied depending on the clause.

Additional benefits acquired from the insurance company:

Loss of rent is covered following the claim. In case of buy-to-let properties, the rental income is covered.
Alternative accommodation, travel expenses and temporary living expenses are covered. In case, the owner doesn’t have a place to stay or need to travel, the insurance company will take care of it
Public Liability insurance up to £5m is automatically included; it might vary depending upon the insurance company.
Approx, £1m is covered as Employer’s Liability.
£50 excess for each loss or damage claim.
Any accidental damages caused will also be covered.
All policy documents are available in English for easy usage and understanding.
It covers both short term and long term lets.
Instant coverage is available if insured properly.

Some tips on Portugal Insurance. It is essential to understand the clauses before applying for the insurance. One has to choose the type of insurance carefully, according to his requirement.

When obtaining insurance for the property in Algarve it is advisable to consider the full cost for rebuilding including buildings, walls, professional costs incurred in rebuilding, cost of clearing etc.
High valued items such as jewels, antique pieces, costly paintings, furniture and others should have a separate valuation and require certificate of authenticity. Moreover, contents with excess value will require proof of security measures.
Terrace and swimming pools should be included in any cover. Separate insurance coverage for electrical items.
Content Insurance covers from furniture to electrical appliance which will not be covered under building insurance.
Tenant Insurance will cover the tenant from accidental damages caused on the owner’s property and his own valuables.
Title insurance protects you by bearing the cost of legal liabilities to settle any disputes over the ownership.

Buying property abroad is a huge investment and it has to be protected with necessary safety measures. Insurance on property for sale in Portugal is one of the best ways to safeguard your property. Most of the property for sale in Algarve comes with the benefit of insurance. Property insurance in Portugal is highly beneficial.

Golf Property in Portugal

2008-01-30T02:27:00.001-08:00

Portugal, a land of beautiful vales, gorgeous coasts, splendid landscapes and diverse cultures, is a paradise for all travel-freaks. With beautiful beaches, magnificent mountains and warm climatic conditions, the country attracts investors from all over the world to buy property in Portugal. In addition to its natural beauty, Portugal is also well known for its magnificent Golf courses. Its picturesque Golf courses have increased the demand for golf property in Portugal. Many foreign and residential investors throng to buy golf property in Portugal.

Owning a golf property in Portugal has many advantages such as:

It serves as a holiday or second home for enjoying a stress-free and hassle-free vacation.
It is a useful and good long term investment as the market price of any kind of investment property in Portugal keeps increasing steadily
It gives you high return on investment
It serves as a regular source of rental income

There are a number of golfing developments in Portugal which offer excellent facilities for golfers. Many developments specialise in offering exclusive and quality property on or near golf courses. The prices of such golf properties in Portugal vary depending on the location, construction, size, quality, nature of the property (new or resale) property and the market price.

A Golf property in Portugal comes with a lot of additional benefits as some of the golfing developments are equipped with golf courses, free memberships, professional tutors, clubhouses, restaurants, community centres and shopping centres. Golf properties in Portugal can be purchased as joint ownership or as individual ownership. These attractive features increase the demand for golf property in Portugal and thereby induce many investors to buy property in Portugal.

In order to buy a property in Portugal for sale, one needs a fiscal number. This identification number is essential to carry out any legal transaction. A legal advisor can help you obtain the Fiscal Number. A safe deposit has to be paid initially to buy a property in Portugal for sale. It is recommended to pay the deposit after your mortgage is sanctioned as in most of the cases these deposits are not refundable.

Golf property in Portugal includes a wide range and type of properties like studio apartments, individual luxury villas, off-plan properties, resale properties, leaseback properties, buy-to-let properties. Investment property in Portugal can be easily brought through Portuguese mortgages. Mortgages are sanctioned based upon the income, credit history and credentials of the applicant.

Claiming Portuguese mortgage for investment on property in Portugal is relatively simple. Portuguese Mortgages lent by banks are based upon the value of the property. Up to 80% of the property value can be claimed as mortgage. However, the mortgage percentage claimed may vary for residents and non-residents of Portugal. While claiming mortgage, it is essential to include the hidden costs like notaries and registration fees etc, as it is difficult to claim any extra amount once the initial amount is sanctioned.

Interest among foreigners for buying property abroad is constantly rising. Hotspots like Algarve in Portugal ranks first as favourite spots for purchasing second homes or holiday homes. Golf properties of Portugal attract sports enthusiasts to make investments in Portuguese property. Warm climate, rich culture, alluring beaches and easy availability of Portuguese mortgage have created huge demand among investors to buy property in Portugal.

LOOKING TO BUY OFF PLAN PROPERTY IN PORTUGAL?

2007-12-11T01:47:00.000-08:00

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.

MORTGAGES FOR YOUR PROPERTY IN PORTUGAL

2007-12-01T02:10:00.000-08:00

Buying property in Portugal can be made simpler by claiming a Portugal mortgage. One can claim up to 80% of the value estimated to buy property in Portugal. Mortgage in Portugal is available from 5 to 30 years of time. The mortgage is available in Euros and all other major currencies. The bank’s surveyor will officially evaluate the property for sale. Though every other regulation is the same for both foreign and local residents with regards to a Portugal mortgage, loan requirements are different for Portuguese and foreign investors. The lending criteria and the mortgage packages available for local residents and foreigners vary from each other. For a non-resident, the maximum loan that can be availed for a period up to 30 years is 80% while it is 90% for a resident.

Mortgage is available to investors who wish to invest on properties in Portugal. Portugal Mortgage is relatively easy to claim, for those who have a Portuguese residency card, tax code, bank account, proof of regular income, good credit rating. These loans are available for purchasing any kind of property like small houses, studios and large villas. For buying a property ‘off plan’, mortgage can be raised only after its completion. One can apply and keep the offer ready in writing. However, valuation and fund transfer will not be made until the property is completed and inspected for valuation.

It is advisable to engage a legal advisor prior to signing the contract for buying property in Portugal. It is essential to check whether the property is free of debt and the price is reasonable. The buyer can also give his lawyer Power of Attorney to sign on behalf of him if he is unable to be in Portugal during the process. Lawyers generally charge 1% - 2% of the property value as processing fees. And it is not advisable to have the seller’s lawyer for your purposes. It is difficult to make any changes in the cost of the Portuguese mortgage after the completion of sanction. Hence it is advisable to rise the maximum funding one requires in the beginning stage itself as changes at a later stage might not be possible or will be very costly.

Necessary requirements for Portugal mortgage:

Proof of income. Should be sufficient enough to pay the mortgage.
Valid Passport and Identity Card.
Pay slip for employees or two years account along with the tax declaration.
6 months Personal Bank statement.
Proof of address.
Signed contract (if available)
Detailed address of the property to be purchased.

Final Process:

After the mortgage request is made, one will receive formal approval provided the applicant is eligible and subject to valuation.
The Bank’s surveyor evaluates the property value.
The buyer’s lawyer is provided with registration documents.
Funds approved by the bank will be released on the agreed date.

Portugal mortgage is a simple and easier business transaction which helps buying property in Portugal an easier one. The interest rates are nominal and the fund sanctioned encourages prospective foreigners to buy property in Portugal. Another added advantage is that most of the Portuguese banks have branches in America and European countries which can arrange mortgage in major currencies.

Postings coming soon..

2007-11-22T04:35:00.002-08:00

Are buying a property in Portugal? Do you plan to move to Portugal permanently or are you looking for a second home or investment property in Portugal. Starting the first of December 2007 we will have a monthly post, full of tips and tricks when buying Portuguese property.