INVESTMENT PROPERTY IN PORTUGAL

Investment property in Portugal is very popular with anybody wanting to retire, buying off-plan in Portugal is a good investment, it takes approximately two years to build new developments in Portugal, buying off-plan in Portugal means putting a 10% deposit down on a property that has not yet been built, but will be cheaper than the finished property. Architects plans are all that is available when buying off-plan in Portugal, at each phase of building buyers are required to make a payment; before the final payment is due many investors will sell in order to make a quick profit. Investors may have more than one off-plan property in Portugal to sell before completion, so stand to make a handsome profit on their investment property in Portugal.

New developments in Portugal are purpose built either for retirement homes or holiday homes, and usually have facilities such as swimming pools, games rooms and even a bar. Foreign builders may build specifically for their own countrymen, when purchasing off-plan in Portugal it is worth finding out who the neighbors are going to be, some foreigners like to integrate into Portuguese life, some prefer to live close to their own kind. Portuguese families like to live quite close to one another, the cost of buying off-plan in Portugal varies depending on the location, to purchase off-plan you must be prepared to wait for up to two years if you intend on living in the property when it is completed. Resale homes are usually sold furnished, but it may be worn or not to the buyers taste, so could potentially cost more in the long term, investment property in Portugal increases in value slowly, although luxury villas individually designed in the Algarve are much sought after and an increase of up to 40% per annum is not unusual. When buying off-plan in Portugal employ the services of a good lawyer to oversee all the paperwork and legalities associated with buying off-plan in Portugal, ensure that the developer has a good reputation and hasn't had financial difficulties when building previously, have a look at any previous new developments in Portugal by the same developer.

Portuguese people don't generally buy property as an investment and are not interested in renovation of property which is why investment property in Portugal particularly in remote areas doesn't increase in value as quickly as in some other Countries, about 5% per annum. It can take up to three years before an investment property in Portugal has recovered the cost of the legal fees at the time of purchase; legal fees can be as much as 15% of the purchase price, investors should bear this in mind before buying investment property in Portugal, there is still property in need of renovation, a good investment if the investor is willing to do most of the work, employing builders, electricians and plumbers etc. can bump up the cost of any renovation project and won't make the investor a quick profit.