Identifying Your Property
By the time you have decided in which area you wish to purchase, you will probably already have determined the type of purchase you intend to make, whether it is off-plan, newly built, resale, or self-build.
Whichever is true of you, you should bear in mind that can be cheaper to buy a new or nearly new home, than a previously owned property requiring modernisation or renovation. With a new property the price is fixed, unlike the cost of renovation which can easily get out of control, particularly if you are not on site to supervise the builder.
Furthermore, a newer property can usually be let immediately and modern homes usually have good resale potential and are still considered a good investment by British and Portuguese buyers alike. New properties are covered by a 5-year warranty against structural defects and it is against the law to sell a new home without one.
When a property is purchased off-plan, payments are often made in stages, with a reservation deposit of around €5000 (which is usually refundable) and an initial deposit of between 10% and 30% being payable at the signing of the Promissory Contract, probably around four weeks after you have agreed to purchase the property.
Re-sale New Homes: Buying new does not necessarily mean buying a brand new home in which you are the first occupant. There are many advantages in buying a modern re-sale home which may include for example, an established development with a range of local services and facilities in operation, more individual design and style, the eradication of teething troubles, furniture and other extras included in the price, a mature garden and trees and a larger plot of land. With a re-sale property you can see exactly what you will get for your money, most problems will have been resolved, and the previous owners may have made improvements or added extras such as a swimming pool, which may not be fully reflected in the asking price. In the current economic climate, some of the best bargains are to be had from British owners selling their own property.
