Buying A Home
Why does it make sense to buy a property in Portugal with a buyers agent?
The role of a buyers agent is not just about finding the right property at the right price, but also to provide much needed support during the transaction process. Portugal real estate market & legal procedures can be incredibly difficult especially when you do not speak the language and also if you are not familiar with the country, and the way in which things are done.
While you can find a lot of content online about buying a property in Portugal, a lot of it is incorrect or at least out of date. If you do not know much about Portugal, you could end up buying a property in a location not suitable for you and you could also find yourself underestimating the amount of restoration work that a property requires.
A buyers agent will always advise you with your best interests at heart. There are also many legal requirements in purchasing a property in Portugal such as, a property that can still have debt attached to it, properties owned by multiple owners, some of whom may not even live in Portugal, construction history of older properties that may have been built or enlarged without the necessary planning permissions. If you sign a contract or pay a deposit, without seeking legal & professional advice beforehand, you could find yourself in a very difficult situation.
As Portugal does not have a central database for real estate, individual property searches can be difficult. A buyers agent will do their due diligence based upon your requirements to find the best property for you. Another added benefit of using a buyers agent is to have someone to liase with individuals such as architects, builders & engineers which can be useful if you do not speak Portuguese. The right buyers agent will also help you not being overcharged for a property. they can provide you with market analyses of the properties of your choice and negotiate on your behalf so that you get it at the right price. Last but not least, the buyers agent will make sure that you have the correct documentation with regards to:
Property Tax
- Property Transfer Tax (IMT – Imposto Municipal Sobre Transmissões) between 2-8%
- Stamp Duty (Imposto Selo) 0.8%
- Property Tax (IMI) between 0.3-0.8%
Mortgages in Portugal & the advantages of getting pre-approved mortgage before finding your new home
You may find it a little odd to start by the mortgage when deciding to buy a property in Portugal. However, it is actually a great strategy for those with no time to waste. A pre-approved loan home is a process that can start before you arrive in Portugal and even if you have not yet chosen the location where you would like to live. The process consists of analysing the clients financial profile, assessing their income, expenses and the level of risk associated, Depending on these factors the client will then know the amount for which they may get approval.
Most banks in Portugal grant a maximum financing to foreigners of 80% of the value of the property. By knowing how much you can borrow, you can then avoid wasting time with options of houses that are not within your financial capacity. We partner with a team of independent mortgage brokers duly accredited by the Bank of Portugal that will help you with your mortgage process for free, and the process can be conducted all online. The financial brokers work with all major Portuguese Banks and will get you the best deal on offer for your specific situation. Aside from mortgages, they also assist with other types of personal & business loans.