Frequently Asked Questions

We understand that when buying a property in Portugal we need to add 15% to the purchase price to cover legal fees and purchase costs! DH
Answer. Absolutely not! For a house the percentage can be as low as 4.8% for a property of say 150000 Euros and 6% for a property of 350000 Euros. If it is a building plot or ruin then expect to pay in the region of 8-10%. There are a plethora of TV programs and publications on ”Moving abroad” and they often give the wrong information. Whenever we have a client interested in making an offer we calculate in advance all the extra costs including solicitor fees so that the prospective buyer knows exactly where they stand.
Can I buy a piece of land and put a wooden house on it? FBJ
Answer. If the land is classified as urban or has an existing registered building on it then planning approval can be sought to construct a wooden house on the land or in place of the existing structure in the same way as for a conventional house, and permission will usually be granted. Bear in mind that the structural qualities for conventional construction will apply to wooden structures. Permission will not be granted for wooden houses on agricultural land and any construction with the intention of being used for habitation, even if temporary may be subjected to it being removed. Temporary structures for storeage of tools, etc is usually acceptable.
We have searched the Web for information on buying property in Portugal and have read many articles found in the various forums, alas we are now more confused than ever, there are so many contradictions, where can we find out what is fact and what is fiction? GW
Answer: Beware of ”Forums” some of the information offered is useful, however quite a lot of the information is hopelessly inaccurate, contributed by so-called ”Experts” who remain anonymous and therefore unaccountable, an unfortunate symptom of the Web. Just as if you were buying a property in your own country, you need to use the services of a reputable estate agent (we have to be ”Licensed” in Portugal), a solicitor, a mortgage broker, and if your purchase involves tax issues an accountant. These are all professional bodies that are ”accountable” and will give you the facts not fiction.
Portugal is suffering economic woes so is this a good time to invest? SL
Answer: Portugal is suffering economically along with Spain, Italy, Ireland and Greece. This has an effect on the Portuguese working population. However since 95% of our property sales are to expatriates and foreign Nationals who purchase either a second home or retirement home then these investors are virtually immune to these economic factors. If they derived their income from Portugal then they would be affected, however the vast majority do not. According to Government statistics, 2009, saw a 6% reduction in property prices across Portugal, however this figure is influenced mainly by the fall of prices in Northern Portugal and not so much by the property market in the South. Prices in the council of Monchique have held their own with only the sales of very expensive Villas being effected, sales of properties under 250000 Euros have been good and there is now a shortage of houses up to this level which in turn has raised prices in this sector. Again, according to Internal Revenue statistics there were only two property repossessions in Monchique during 2009 and none in 2010 months and zero repossessions in the council of Odemira which confirms that this area is not subject to the worlds negative trends. Demand for the cheaper properties, ruins and plots is traditionally good and the forecast continues this trend.
If we buy a house in the Algarve how can we find a good solicitor that we can trust? ATG
Answer: It is recommended to choose a solicitor in the council of where your property is situated as they will be experienced with that council´s peculiarities. For this reason a non-local solicitor will very likely subcontract a local solicitor anyway and so you will certainly pay more and for a solicitor whom you don´t know.
Contrary to what you may think your estate agent will be able to recommend the best ones because they will have ”weeded out” the worst and will have developed a working relationship with the better ones. After all it is in the Estate Agents interests to ensure that your purchase is absolutely trouble free. Agents here are accountable and a dissatisfied client is the worst kind of publicity.
Mortgages, what are the realities of securing a mortgage with a Portuguese bank? BB
Answer: Typically, banks in Portugal will advertise that they will approve mortgages up to 80%, subject to valuation, to qualifying clients (resident or non-resident), on apartments, villas, cottages, etc. Since the ”credit crunch” realisticaly expect no more than 60%! They will also fund the construction of a new house, however it is expected that the title for the land or ruin and planning permission have both been secured by the client. In these cases they will finance about 60-70% of the construction cost only. Banks will not lend to purchase land or ruins, however houses that require only moderate renovation and have at least a kitchen and a bathroom can be mortgaged, typically up to 60%. We can advise and recommend you to English speaking mortgage brokers.
I am quite a capable person can I build my own house here in Portugal? SH
Answer. It depends on what building work is required. If the existing house is in reasonable condition, (no major structural defects) and does not require any extension to the existing footprint or does not require a second floor for example, then yes, the repairs and replacement of roofs can be done by anyone. Remember this, ”3Rs”, Renovate, Repair, Replace, these are items that any property owner is entitled to do. Obviously then, extensions, additional floors, demolition and new construction will require planning permission and therefore will have to be constructed by a Portuguese licenced builder. We have been asked if it is possible for an English builder to obtain a licence here, it is possible but requires much patience, time and effort and a working knowledge of the language. Because we also have a Project Management company we have the experience to offer advice on which properties would be suitable for DIY and owner builders.
I want to have a new house built in the countryside, what are the restrictions on size and swimming pools? LH
Answer. Any new house has to be built on urban land or in place of an existing structure. It is unlikely to find urban land in the countryside as it is normally found in towns and on estates. This is why we have over 100 countryside ruins in our inventory, these can be demolished to make way for new houses. Every ruin can be demolished and rebuilt, the maximum reconstruction possible is determined by the zoning. Some zones will allow the existing footprint to be extended up to 250m2 this would include a swimming pool, other zones will allow a very generous 300m2 and in addition a swimming pool. We have for each ruin maps of the zones and the relevant laws to determine, in each case, what will be allowed.
We are considering the North of Portugal or the Silver Coast, how does this compare with the Algarve? WF
Answer: We love the whole of Portugal and have spent many holidays and long weekends visiting various locations in the North including Silver Coast but would not wish to live or invest there. Flights from UK airports to Lisbon and Porto are expensive and not as frequent to those into Faro, Algarve and so the availabilty of cheap flights are rare making it difficult for family or friends to visit and frequent holidays expensive. Also the Algarve has a micro climate which gives us very mild and sunny winters whereas immediately North of the Algarve the winters are harsh and wet, typically 3-4 times more rain, 10ºc colder in winter and 6-8ºc colder in summer, not much different from the rest of Europe for that matter. Scroll to the bottom of this page to see the table of Climate Statistics, and compare for yourself.
What is the cost of living like in the Monchique area? HR
Answer: Many of our clients are quite suprised at how low the cost of living here is, annual rates can be as low as 30 Euros a year, A very large villa with garage and pool can attract annual rates of 300 euros per year. Heating costs are small due to the warm climate, petrol and diesel much the same, road tax and car insurance about half of what it is in the UK. Parking is free in Monchique including free underground parking. Most properties in our area have natural spring water on the land, those with mains water are charged under 1 euro per cubic meter (1000ltrs) a typical meal out for two including wine can be between 15-25 euros. Typically ones pension can go twice as far in Monchique than in the UK.
What is crime like in the ”Upper Algarve”? (Monchique) FS
Answer: Fortunately crime has not reached this area and in general is only evident on the coast and large towns where commercial and industrial activity is large. Monchique and the surrounding villages are still very much occupied with locals tending gardens and orchards which is a wonderful form of security! Portugal ranks very highly in the most sought after and safest places to live and as far as cities go, Lisbon is ranked 9th in the worlds safest cities in which to live. Typically, in Monchique the local people rarely lock their homes or cars, it is only the foreigners that do!
We have heard about ”Land Grab” in Spain and so are nervous about buying Property. VP
Answer: I would be nervous about buying property in Spain too! Many people incorrectly assume that since Portugal and Spain are both in the ”Iberian Peninsula” that they must have the same customs and laws. Nothing could be further than the truth! Each country has developed independently and the differences are huge. Comparing Spain with Portugal, would be like comparing France with United Kingdom or Denmark with Greece. There is no Land Grab in Portugal! Actually the Land Grab in Spain has benefitted Portugal in that many property owners in Spain are selling up to move to Portugal!
We don´t want to retire yet but are thinking of getting a foot in the Portuguese property market and buying a ruin to develop at a later stage, is this a wise thing to do? JLP
Answer: Many clients buy a property now even though they may not use it for several years, simply to buy at todays prices whilst they are still cheap.The same would apply to buying an old house or ruin. The right to refurbish, repair or rebuild does not diminish with time and the annual rates are so small, typically 20-50 Euros per year for an old ruin!
Question: My wife has problems with mosquitos, are mosquitos common in Monchique? JSB
Answer: It´s true that tourists are plagued by mosquitos on the coast, this is due to mosquitos breeding in the rice fields in the low lying areas and wetlands along the coast. Fortunately the Serra de Monchique does not have any of these breeding sites and so they are not a problem here. Seriously, we could count on one hand the number of mosquitos we encounter in a season, and no we do not have West Nile Virus in the Algarve.
What is the night life like in Monchique, do you have karoke bars?
Answer: No we don´t, thank goodness, if you want this style of ”night life” then Monchique is not for you! Portimão is only 20 minutes away, they have this. Monchique offers an abundance of excellent restaurants with great food and wine at very reasonable prices. Most restaurants have outside dining as well with dramatic views to the coast. In summer we have many outdoor events with free entertainment or even visit Caldas Monchique for al fresco dining and live entertainment.
 
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