BEFORE YOU BUY a Home in PORTUGAL - PROPERTY CRASH? #movetoportugal #retiretoportugal

in this video before you buy a home in Portugal we report on current problems in the property market and what to be aware of before you buy property with the recent rise in interest rates many home buyers in Portugal are struggling with mortgage rate hikes to qualify for the golden Visa many property investors have been exploited and have paid over the true market value for property some people a warning of a possible property market crash the Portuguese government recently announced that it was Haunting the golden Visa program since this program has inflated property prices thousands of Portuguese were recently protested against the Portuguese housing crisis and lack of affordable homes they claim that expats have been driving up the cost of property most people in board school have variable rate mortgages and have grown accustomed to ultra low mortgage rates recently mortgage rate hikes are really hurting Portuguese borrowers as evident on Facebook groups with comments such as my mortgage payments almost doubled and my payment went up an additional 500 euros per month to put things into perspective 50 of workers earned less than 1 000 Euros per month last year the monthly minimum wage is 760 euros yeah if people default on mortgages it is feared that property prices may take a hit and rents will increase we may be witnessing the end of a housing bubble things that continue to inflate usually at some point have to deflate or go pop [Music] before you buy a home in Portugal here are some tips to consider make sure that the asking price is fair don't get ripped off by unscrupulous agents check the area reports on the idealista website before you buy you'll need a nif number and Portuguese bank account [Music] arrange with a specialist currency Transfer Company such as xe.com to arrange the best currency transfer rates into Euros here are some tips negotiate the best deal multiple agents not just one hire a legal solicitor are their planning restrictions affecting the property will you be able to rent out a room or install a pool don't make assumptions get the facts established in writing cash is a great negotiating Advantage having no mortgage will reduce transaction fees seller is eager to shake your hand slow down a little back off [Music] do your research before negotiating research the property and the local real estate market to gain a good understanding of the properties value and market conditions we would suggest living in an area before making a purchase if visiting the Algarve we may be able to find you low season rentals consider your lifestyle will you own a car if not how far is it from your home to the supermarkets or schools if you have children check local transport services if the area is remote will the locals speak English or will you need to speak Portuguese what's the local weather like how high will the heating bills be in Winter or will you need air conditioning in the summer [Music] meet the neighbors before you buy knock on the door to say hola check whether they have an aggressive dog that might want to chew your bones every time you go onto your adjoining balcony Services connected is the area you live prone to forest fires are you surrounded by eucalyptus and other flammable trees check out the focus PT app which reports forest fires in real time ceph provides reports on where immigrants live so if you would rather flock together with fellow expats or prefer not to check out the links in the description below is the property being sold by one seller or multiple sellers since property inheritance laws in Portugal can complicate property sales it's best to negotiate with one seller get a property appraisal hire an independent property appraiser to evaluate the property's value to ensure that you're not overpaying will you need a mortgage is age a factor since mortgages are not generally available if over the age of 75 [Music] are you in good health could your children get a mortgage could you afford increasing mortgage costs if interest rates continue to rise do you need mortgage broker will you wish to rent out the property has the house been modified since its construction date [Music] this might rule out a rental license or does the house predate 1951 would a rental license be issued are you aware of the taxes payable for letting out a rental property you could engage a local independent buyer's agent to negotiate the best price a reputable local agent with knowledge and experience in the local market can provide invaluable advice and guidance throughout the negotiation process choose someone who is not closely related to the agent who is selling know your budget determine your budget and stick to it during negotiations be prepared to walk away if the price exceeds your budget don't fall in love and get emotionally involved with one property keep in mind that negotiation is a two-way process and be willing to make concessions if necessary aggressive investors have negotiated up to 25 off the asking price ask whether the property is properly insulated many properties in Portugal are poorly insulated and cold during the winter months will the kitchen and bathroom need updating are there any drainage problems some properties suffer from poor drainage toilet paper cannot be flushed down the loom check what internet Broadband speed is available our solar panels installed and will you receive payments from electricity generated is the Solar Supply contract transferable flex your negotiation muscles consider other factors such as payment terms closing dates and repairs or Renovations that need to be made which may be negotiable before signing any contracts seek legal advice from a qualified lawyer who specializes in Portuguese real estate law and who speaks your language to ensure that you fully understand the terms and conditions of the sale be aware of the tax commitments you have to pay such as the variable property transfer tax IMT consult specialized Professionals for help if Furniture is included in the price ask the agent to suggest how much the furniture is worth don't pay tax on the furniture value only on the house value [Music] are there condo fees are there service fees or any other maintenance fees associated be aware of how politicians may change policies that may affect the property Market such as the ending of the golden Visa scheme and restrictions on Airbnb I hope that you found this video interesting Please Subscribe and hit that like button since it would really help our channel to grow if you plan to move to Portugal download free help sheets from our website and join our Facebook group for updates about the D7 Visa process see links in the description below thank you for watching see you in Portugal soon goodbye [Music]

Channel: Move to Portugal

Views: 11,959

Keywords: #movetoportugal, #propertycrashportugal, #buyingahouseinportugal, #livinginportugal, #movingtoportugal, #buyahomeinportugal, #buyingahomeinportugal, #beforeyoubuyahomeinportugal

Id: ZQtZdobA2Pc

Length: 10min 28sec (628 seconds)

Published: Sun Apr 23 2023