Investment Property Portugal

A look at real estate in Portugal that is purchased purely for investment. Includes a description of what an investor should look for in a property, as well as where to look.

Investment property in Portugal is very hot right now, as many people are eager to retreat to this former ancient empire. Portugal offers a diverse and lush landscape and tourists often seek its tropical locations to soak up the sun or world famous golf courses, such as in the popular Algarve. Investors should be happy to know that Portugal has made great financial and technological advances in recent years since joining the European Economic Community. This has helped to make the country a stable and profitable land to invest in.

There are many different kinds of investment property in Portugal. From apartments and condominiums to large estates, there are properties to fit any investors budget. Also, since the real estate market is so profitable at the moment, local banks are eager to help with mortgage loans. Although the average mortgage loan offers 60-70% of the purchase price, some investors may be able to obtain more with refinancing. Interest rates are quite reasonable, too, which should relieve overseas investors who are used to outrageous rates in their home country.

Investment property in Portugal can be bought through a local real estate agent or from a builder. A builder offers off plan property that is yet to be built or is in the process of being built. Off plan properties offer a great potential to get in cheap and sell high when the property is finished. However, some investors may prefer to buy a property and then rent to a tenant, thus earning passive income for an indefinite amount of years. In fact, many people find they can do this for a living, rather than just a means to make some supplemental money.

The land of Portugal is very diverse, so investment property can be purchased in bustling cities or rural areas that depend on the agricultural industry. Neither kind of property is better than the other, as it depends on an investors needs and preferences when choosing the landscape. Cities enjoy large amounts of tourists and big festivals, such as the world famous Carnivale celebration, also known as Mardi Gras. However, a beautiful country home in Portugal may be desirable to investors and renters, as well. The cost of living will certainly be lower in the latter.

No matter where a buyer purchases his/her investment property in Portugal, one should obtain a Portuguese lawyer to oversee the signing of final documents. Although Europeans should be fairly familiar with Portuguese business because of their home country, there is no such thing as being too careful when investing large amounts of money. However, most people make investments in Portugal with no problems and are quite satisfied with the growing market, which is projected to continue its upward trend for years to come.

Written by Amy Cottrell for OverseasPropertyNet.com

Sunday 23rd July 2006



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