Financial points you must think about while buying property in Portugal
Portugal is one of the most preferred second-home destinations for the Irish and British home buyers. In fact, many people across Europe as well as other parts of the world want to buy a property in this lovely warm and relaxing country. If you are planning on buying property in Portugal, you must understand the basic procedures of Portugal real estate. A handy tool you can make use of is the home mortgage calculator, if you are planning to take out a mortgage to buy a home in Portugal.
Buying Property in Portugal – what attracts home buyers?
The country’s serene sea beaches, pleasant weather, well-preserved landscape, charming cities and the magnificent golf courses have been the most significant points of attraction for the property buyers for over a decade. However, these are not the only reasons for buying a property in the country. If you see from a financial perspective, there are many more reasons that you may like to think about.
Considerable financial factors
Before you invest in a Portuguese property, you must consider the following financial factors:
Property price – The cost of property in Portugal is lower in comparison to other European countries. If you cannot afford to buy a home in Lisbon or the Algarve, you can surely find one in other parts of the country, within your budget. Remember, apart from the appraised value of the home, you have to bear some other expenses too. For instance, property tax (payable to federal government), purchase deposit (10% to 20% of the property cost), stamp duty (0.8% of purchase price), notary frees and land & property fees. Therefore, you must take these expenses into consideration at the time of purchase. You can use a home mortgage calculator to calculate the amount that you need to pay as monthly premium.
Investment perspective – Buying a home in Portugal is a financially wise decision. According to the global real estate giants, Portugal property is the safest one to invest in, both from long-term and short-term standpoints. The real estate prices in the country are experiencing a steady rise and thus are likely to give good return on investment over time.
Mortgages in Portugal – Home mortgages in Portugal are available to both residents and non-residents of the country. Banks and local financial institutions are ready to lend money to the potential home buyers. There are several banks such as BPI, Millenium BCP, Caixa Geral and Barclays.
Rental income opportunities – Determine the main purpose of buying a property in Portugal. Whether you want to relocate to your new home permanently or use it as a holiday home is entirely your choice. If the later one is your preferred choice, you must have good financial option to offset your mortgage. Check if you are in a location where you can earn a significant amount by renting it out to the tourists as well as holiday-makers. Also note that the Portugal government charges 15% tax on your rental income. Therefore, use a home mortgage calculator to estimate whether your rental income is well enough to offset your home mortgage premium.
After considering the above mentioned factors, if you find that buying a property in Portugal still looks attractive to you, it is worth contacting us on this site to provide you with further information on any queries you may have. So go ahead, just use the contact form below: