Portugal – More Than Just a Province of Spain!

For investors looking for low risk property that is slightly off the beaten
track, Portugal could be perfect. Offering excellent rental yields and strong
capital growth, making money out of property in Portugal is considerably easier
than many other countries and an option that should not be overlooked.

A place in the sun

Portugal is an area that deserves serious consideration from property investors
looking for a stable investment in a growing country. Due to its stable market,
Portugal is rarely out of the top three in the Channel 4 program A Place In
The Sun rankings on the best countries in which to invest, worldwide.

Prices in Portugal have not seen the huge leaps that are common in Eastern
Europe, but annually property prices have risen by at least 10 percent over
the last five years; experts believe that this is set to continue for some
time.

Despite being reasonably small, in terms of geographic area, Portugal still
has a wide range of regions, including wonderfully sandy beaches, thriving
ski resorts and traditional mountain top villages. As a general rule, eastern
Portugal is cheaper than the west; however, even in the east, property prices
are on average around the £60,000 mark.

Bargain property in Portugal

Those looking for the real bargains and properties at under £10,000
will have to head off towards the rural villages that remain largely untouched
by tourists. Nevertheless, these types of properties will almost invariably
require considerable renovation and an investor should budget to spend at least
double the purchase price on renovation, in order to get the property up to
British standards.

For those looking to make the most of the tourist trade, then the coast is
the place to head! With more than 300 days of sunshine a year, Portugal is
an obvious hit with tourists looking for the traditional beach holiday. Along
the Silver Coast, which runs from Lisbon to Oporto, there are numerous developments
including renovation projects and new builds vying for the attention of the
foreign investor. Prices in this area are often relatively high, although this
is reflective of the excellent build quality and the year round rental appeal.
For example, one of the latest developments, called Victoria Residence, which
includes the use of an onsite golf course, is selling two and three bedroom
apartments with a starting price of £273,500.

Portugal house buying process

An added bonus with Portugal is that the house buying process is incredibly
similar to that in the UK, meaning that investors generally feel more comfortable
with the process. All documentation will be in Portuguese and foreign investors
should, therefore, ensure that they have suitable legal representation, with
professionals who can make sure that all the relevant documents are translated
accurately for your inspection.

Property details, similar to a land title are held at the local town hall
along with, in the case of domestic properties built after 1951, a habitation
licence. After an offer has been made and the price agreed, the purchaser will
then have to sign a reservation contract and deposit a sum of approximately
5,000 Euros with the seller. This value will be taken off the final price when
completion takes place.

The second stage is very similar to exchange in the UK and includes a promissory
contract that will identify all of the important facts including the condition
and price of the property. Finally, there will be the exchange of the balance
and the title of the property; this in effect is completion. Buyers should
budget roughly 15 percent of the purchase price for issues such as notary expenses,
legal fees and taxes.

Portugal offers so much to the potential investor, without the need to take
huge risks. A great place to make a solid investment for the long term!

For more information on investing in Portugal take a look at these
resources:

www.portugal-property-secrets.co.uk  
www.algarveteamproperties.co.uk
www.portugal-info.net/property.htm

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