Portugal – Down but not out

Portugal has a proud history as part of Europe’s elite old guard, which can be felt in its historic castles and proud university towns. It has an old world charm that pervades the entire country and a sense of adventure that is at the heart of this worldly charm of yesteryear. No longer the alternative holiday destination for discerning travelers looking to avoid the teeming beaches of Spain and the Greek islands, Portugal has now become a holiday mecca in its own right and the Algarve is now as famous as anywhere. for its sun, sand and sangria. That being said, there is still a lot of mystery to discover in Portugal if you can go beyond its southern coast.

Its historic capital Lisbon for example, which once visited is never forgotten. A magical mix of romance, laid-back bohemianism, extravagance and incredible nightlife. The city is awash with World Heritage architecture that displays the truly impressive zest of Portuguese skill throughout its creative past. It is a city that intoxicates with its inspiring panoramas and beautiful streets and squares of the eighteenth century. It is steeped in art and history and is a place that reveals itself time and again in the kaleidoscopic tapestries of multi-layered mosaics that decorate its open areas.

Porto is Portugal’s second largest city and is a treasure chest for anyone looking to admire its historic architecture. It is a city with its own soul. With a medieval quarter that is a World Heritage Site and a wide variety of cultural monuments, which helped promote Porto as the European Capital of Culture in 2001. Its beautiful parks and squares, wonderful food and world-renowned wine make it a city to be fully explored and enjoyed by anyone seeking the other side of Portugal.

Portugal also shows its antiquity in its medieval towns that are scattered throughout the country. The most notable of which is Obidos, with its charming 12th century castle overlooking a town that is made up of old stone buildings and cobbled streets. The city is a romantic step back in time and a perfect monument of old Portugal. Other inland towns of rare beauty include Marvao and Monsaraz, too, with a full millennium of history in their ancient designs and surrounding ruins.

When traveling in Portugal, one often has the feeling of great austerity derived from the enormous wealth ascended in the ‘Great Age of Discovery’. Much of that money was spent building a country that could rival any in the world for grand architectural designs.

It is true that for Portugal, the last few years have seen a decline in its recent fortunes and the disparity between the different economies of Europe is beginning to show itself through the single currency. Portugal is in financial trouble and continually borrows money at ever-higher interest rates, without the means to pay off the debt or change the habits of the workforce. Is the southern European tension expected to sync up with their serious northern European brothers and sisters, finally starting to show themselves? One thing is for sure, there are real problems at the heart of Portugal’s finances and the recent bailout is seen mainly as simply plugging the leak and quite possibly not a long-term solution.

So how does this affect those who want to invest in a piece of Portuguese property? Well, in many ways this can be seen as a positive, as experts now feel that the housing market, which has lost around 30% of its value in recent years, has now leveled off and started to stabilize with rescue help. . This remains to be seen, but the fact that Portugal, with its incredible climate and coastline, rich history and first-class infrastructure, plus a good loan rate for non-resident buyers, currently around 3-4%, which is Better than buying in the UK, it remains as attractive a place as ever for the overseas buyer.

When starting to look at house prices, it is still possible to buy old Portal properties that need a complete restoration for as little as €15,000. Obviously, the actual cost of living in a property like this would be much higher once construction work and materials are factored in, but for anyone comfortable working with renovations, this can be a cost-effective way to own the house of your dreams.

If all that work seems like too much for you and you’re looking for a place on the coast that’s finished and ready to go on a tight budget, then you might consider “fractional ownership.” This is an increasingly popular form of purchase. With this type of purchase, you benefit from having partial ownership of a property and, subsequently, ownership of a portion of the property’s growing value. This can work for those looking for the ideal place to vacation and get some capital appreciation without the major outlay and liability of a buyout.

If you’re looking for an outright buy that’s ready to go, you can find affordable country houses for as little as €35,000 or more. Two-bedroom coastal villas can be found from €70,000 and up. Depending on location and opulence, prices vary greatly, but now you can find a real bargain in Portugal if you’re patient and dig around. It’s very much a buyer’s market and you can afford to haggle to get the price you want in the current climate.

Once you’ve found the area you want to buy in, the first thing you need to do is locate a trusted real estate agent. This is essential, so that you know exactly what you are buying. Non-Portuguese citizens can buy without restrictions, but it is essential that you find yourself a good English-speaking lawyer, as they will be instrumental in guiding you through the process, while clearing you of any potential deficiencies in the sale transaction.

Once you have found a residential property in Portugal that you wish to bid on, to proceed you must ensure that you have the following documentation.

• Residential License if the property was built after 1951

• An official record at the Land Conservatory

• At the tax office you should be able to track down a detailed description of the property

Once you’ve retained a good attorney, it’s your job to see that everything runs smoothly. The notary public who is responsible for witnessing the transaction is not there to give you legal advice and is not responsible in case something adverse happens after the transaction. Your attorney will be responsible for all legal documents, all permits that need to be obtained, and payments that need to be made at all times.

Additional costs can be up to 15%, so it is prudent to reserve this amount in addition to the purchase price to cover notary fees and taxes, plus stamp duty, mortgage charges and all legal costs. .

Even with this additional cost, Portugal still offers good value for money, with fantastic rental returns on investment. It may be going through a difficult time right now, but with so much history and beauty, this wonderful little country remains and will continue to be a European paradise.