Real Estate & Investing

Buy Property Portugal asked:


The Buyer´s Guide to Portugal

 

Its richness from the age of discoveries, great climate and excellent food, make Portugal a great lifestyle choice!

 

Good things come in small packages and, at only 560km by 220km, Portugal is a small country with a lot to offer. Portugal is situated on the southwest of the Iberian Peninsula, which it shares with Spain, and its 800km of coastline all face the Atlantic.



Winters are particularly mild on the coast, and summers are hot but rarely unpleasant. The Atlantic air masses keep Portugal green and beautiful. But best of all, the country is largely unspoilt and the food and drink is fabulous.

 

The beaches along much of this coastline are sandy and very popular, with surfers from all over the globe coming to take advantage of the huge waves.

Whether you are planning a holiday in Portugal or looking to buy property there, you will have lots to keep you occupied during your stay. Portugal was a hugely wealthy country about five hundred years ago when its maritime discoveries brought riches to the Iberian Peninsula. However, the Age of Discoveries ended along with the sixteenth century and Portugal slowly became a remote place compared to much of Europe.

There are plenty of excellent golf courses in Portugal, especially in the Algarve where you can often combine sea views, sunshine and a round of golf quite happily.

Another reason for moving to Portugal is that it seems a lot cheaper than places in Northern Europe. Flights to Faro, are quite inexpensive and this, combined with the 3000 hours of sunshine that some regions get every year, really makes Portugal the ideal place to live.

Buy Property Portugal asked:


This is www.buypropertyportugal.com ’s next chapter of how to buy a property in Portugal, here we focus on the Algarve as it’s currently one of the most attractive places to invest and to enjoy investment growth while enjoying the sunshine on the beach

 

The Property Market

 

Why not choose to base yourself in an area with over 3000 hours of sunshine each year and give yourself the quality of life you deserve?

 

 

Portugal is an attractive location for house buyers, with the Algarve being the most popular area for British buyers, mainly due to the weather, golden beaches, and the abundance of golf courses. It is Portugal’s busiest, most developed region and it is reported that 90 percent of all property sales to foreign buyers are in the Algarve.

 

The age of Internet and ADSL means that mobility of labour is very much a reality and it is easily possible to maintain instant contact with colleagues anywhere in the world. Satellite TV means access to English language television and VOIP systems give you a U.K. telephone number and U.K. calls at low rates.

 

There are excellent air connections to anywhere in Europe and intercontinentally from Faro or Lisbon airports, making it perfectly possible to base yourself in Portugal and ‘commute’ back to the U.K. Many of the ‘budget’ airlines fly into Faro from Stanstead, Luton, Bristol, Gatwick, Heathrow, East Midlands, Dublin or Manchester and offer excellent value charter fares. Additional routes come on stream during the summer months.



 

Where to Buy

 

The Portuguese property market is showing consistent growth, strong rental demand, relative living costs and safe environment.

 

 

There is a wide choice of great properties in wonderful locations and often less expensive than the equivalent in France or Spain.

 

Remember that the summer months in the Algarve, especially August, are very busy in terms of traffic and there are visitors from the north of Portugal and from Spain as well as holidaymakers from all over Europe, all expecting good access to the beach. Unless you enjoy being part of the crowd you may appreciate being a little removed from the bustle. Being just a few kilometers inland can have considerable benefit.

 

Don’t forget to take into account your proposed usage of the property, if you are expecting to live in Portugal permanently then the factors that affect your decision on what to purchase will vary from those required if you are planning to rent the property out for part of the year.

 

Many properties inland or ‘up in the hills’ do not have mains water or drainage. Instead they rely on a system of cisternas (tanks) to collect rainwater and store water brought in by or pumped from a ‘furo’ (a bore-hole), whilst a ‘fossa’ or sceptic tank contains and treats sewage waste.

 

All of these facilities are reliable and capable of many years of unattended operation. Bear in mind if you plan to re-plant the garden, water can be at a premium in the summer months and a new garden may require a bore-hole to be drilled to obtain the necessary extra water needed for irrigation.

 

Drilling companies charge per metre for drilling and then the cost of the pump, control equipment and electrical installation must be added.

 

At Exclusive Algarve Villas, we  try our hardest to give you the latest and most up to date information on the Portugal property market and costs.

 

Please feel free to question our consultants about anything to do with buying and investing in Portugal, in person, via email at info@eavillas.com or on the telephone (+351) 282 353 019

 

Portugal remains an exclusive location, with fewer of the ‘over development’ problems of some of its neighbours. The opportunity to buy quality property in a great location remains excellent but, like all good things in life, availability can’t last. Portugal is slowly but surely being ‘discovered’ and if you’re going to do it, now could be the perfect time to step in to this beautiful country!

 

Portugal is an utterly charming country and relatively speaking still overlooked by second-homebuyers.

 

Many areas have an exclusive feel and second-homebuyers and investors are waking up to the advantages of buying in a country which has not suffered the mass development of other parts of Europe, which is quick and easy to get to, and where the cost of living is still relatively cheap.

 

The Portuguese market is very active, with purchasers from across Europe.  There are plenty of Dutch, French, Spanish and Scandinavians buying, as well as the British. This means that to buy your dream property, quick and decisive action is often required. New developments are selling particularly quickly at the moment and many properties are sold from plans.

 

gonzalezeliezer asked:


 

Property investment is a wise concept to consider, especially in the USA. Some individuals may be hesitant to invest their money in real estate due to the latest news headlines concerning the slow real estate market. However, such an issue can in fact act in your favor in a few different ways. There are a few different reasons why engaging in an investment in real estate now is a great thing to do.

 

One reason to consider purchasing real estate as an investment is that although the market is slow at this time, everyone needs a place to live. The sale of property may be slow right now but this does not affect the purchaser of the investment property. This in fact will help to benefit the purchaser of the investment property, especially if he/she plans to rent it out for investment purposes. Many individuals may not be able to afford to buy property and therefore will be willing to rent the property from you. This is an advantageous factor for the buyer of the investment property and one very good reason to consider buying some property to hold as an investment.

 

Another benefit to engaging in the investment of real estate is that equity on the property will accrue throughout the years. Although the market is seeing some trouble in various areas of the United States, it is still possible for a good amount of equity to be built in the property. In other words, the real estate slump is not expected to last forever. Therefore, those who invest in property may find that they receive a nice return on such an investment property in the future.

 

An investment of this type is also beneficial in that it provides a safeguard for the property owner to have in their back pocket. With the ups and downs of the real estate market it is nice to know that one has a roof over their heads even if it is currently being treated as a property investment. Should an event occur where your primary residence is not livable or you wish to move, it provides peace of mind for you in knowing that you do have a property in reserve just in case you may need it.

 

Lastly, by choosing to invest in property in the United States you may be able to lay claim to something which is up and coming. Certain areas throughout the United States are experiencing revitalization and one area which was once a less desirable place to live may just be the new hotspot. By selecting a property investment of this type you are becoming part of a new era and investing in a piece of real estate which will pay you back quickly and efficiently in the future.

Cheryl Marland asked:


 

When it comes to commercial property listings, there are many ways you can find a list of properties that are available. Some will offer a more personal touch than others. Depending on what your goals for property investing are, you might find that some offer a few impressive benefits over the others. There are three main types of listings for commercial properties utilized these days that you might want to explore if you plan to invest in real estate.

 

Investment Forums and Online Message Boards

 

The world of real estate investing has gone modern and is easily managed through the wonders of the World Wide Web. You can find many excellent resources, groups, and sites that are dedicated to outlining available properties in regions around the world. You will find that many also offer advice, tips, and guidance for getting started. Remember, though, to always double check any information you find online to verify its accuracy before putting it to work for you in your property investing efforts.

 

Real Estate Classifieds

 

These are a little less wide reaching because you do not have access to every newspaper in the country or around the world. More importantly, you really don’t have time to sift through all that information in order to find the perfect properties for your investment needs.

 

Commercial Property Realtors

 

This is by far the best choice for you if you are serious about finding the best commercial property listings quickly. A qualified realtor who specializes in commercial properties is a simple solution for your real estate needs. The right realtor will help you identify potential winners among properties available in your area and connect you with resources far and wide to help handle transactions elsewhere.

 

Only you can decide what the best solution for you is, but when it is your future on the line, it is worth taking a little time to find a qualified realtor to help you seal the deal.

Meridian Pacific Properties asked:


Time and time again I see the same mistakes being made by real estate investors. These mistakes create a poor foundation for the investment and can cause serious financial hardship over the life of the investment. Two of these mistakes deal with improper analysis of the subject property prior to purchase, and the last mistake has to do with having a clearly defined exit plan.

1) Vacancy – Vacancy is an often overlooked, minimized, or completely ignored property cost. Vacancy is a very real part of any real estate investment and must be taken into consideration when analyzing property. Vacancy rates vary from city to city, and many times from neighborhood to neighborhood. Good property managers track vacancy rates and are a good resource to determine local rates. Typical vacancy rates range from 5%-20% of the gross scheduled income (GSI). Sellers of investment property rarely use rates higher than 5% in their sales literature, if they list vacancy at all. As such, it is always prudent in real estate investment analysis to include an allowance for vacancy characteristic of the local market.

2) Maintenance and Repairs – Routine maintenance is a natural part of any investment property and must be taken into account in your analysis. But when purchasing an investment property, the first thing to determine is if any deferred maintenance is required. Many times maintenance rates are estimated without any consideration given to the current condition of the property. It is quite common for owners to sell homes in disrepair or when they know large expenses are looming, so it pays to have the home professionally inspected prior to purchase. Maintenance rates generally run from 5% -20% of the gross operating income (GOI). Expenses tend to be higher for older houses that have not been well-maintained.

3) Exit Strategy – Exit strategy is by far one of the most important elements when purchasing investment real estate. One must assess the motives and struggles of the current owner so they can determine the likelihood of being in the same situation when they are ready to sell. Check carefully to see if you are buying in an area consisting predominantly of rental homes. If you are, your primary strategy may be selling to an investor, who will likely expect a discount. If on the other hand, your investment resides in a solid retail neighborhood, you will likely need a real estate broker to sell it. Sales costs generally range from 6-8% if you are using a broker and 1-3% if you are not. Be aware that your buyer will likely require inspections that could reveal defects that can cost thousands of dollars to remedy. Planning and understanding your exit strategy and costs are key to building a good foundation for your investment.