The Right Time to Invest in Portugal’s Property Market?

“I am waiting for the property market to bottom out before investing”,
Estate agents will have heard this numerous times over the last six months or so. Some buyers think that if they wait that bit longer, they will be able to pick up their dream property at a heavily discounted price. Offers are coming in and cash rich buyers and vulture funds are snapping up some real bargains. In the same breath, although some sellers will have adjusted their asking price to current property market conditions, most will still be able to weather the storm. This is especially so in more affluent areas such as the Golden Triangle of Quinta do Lago, Vale do Lobo and Almancil as well as Estoril and Cascais Riviera and Quinta da Marinha. It is also important to note that the downturn in the economy in Portugal has not been as severe as in the UK and Ireland. This is not to say that there are no real bargains to be had, there certainly are. However, both buyer and seller need to be realistic of the expectation of price in the current property market and Portugal Property Experts is here to help mediate between parties and advise on each individual transaction.

Interest Rates
With interest rates lower than any time immemorial, this is an ideal time to invest in bricks and mortar. More importantly banks in Portugal are still lending up to 75% - 80% of loan to value (property valuation) for residential properties. Furthermore, the green shoots on the horizon in the property market both in the UK and the US make us believe that we are standing at that elusive bottom. This means that if you wait too long you could miss out on that great opportunity.

Get Pre-Approval
Talk to a local bank and get pre-approved for your investment in Portugal. I always recommend my clients get pre-approval for whatever amount they need. This makes sense as it puts you in a much stronger position when negotiating with the seller. Portugal Property Experts can help guide and point you in the right direction meaning that you can conduct your viewings safe in the knowledge that if you need to you can move quickly and secure your property.

“I am waiting for the pound to get a little stronger”.
The days of the €1.45 to the pound are sadly gone and most people have yet to adjust to this mindset. Current prediction says that the pound will eventually stabilise at something in the region of €1.14 to €1.18 to the pound. But what a lot of shrewd investors are realising is that if they manage to get a property at a good discounted price and that property’s valuation is favourable, they can still afford to invest and only put down a 10% deposit. They will then rent it out until the property market picks up again before selling it on. You can also save money on your transfer by using a currency exchange broker who will give you a much better exchange rate than your bank. This has become increasingly important for UK based sellers wishing to convert their money back to sterling and helps mitigate against any reduction in selling price.

Portugal Property Experts can advise you on how to get the best out of the current property market. Some great investment opportunities are not listed on our website due to the confidential nature so please contact us for an informal confidential chat. We look forward to helping you with your investment.

Investment opportunities in the current property market

Article by Miguel Menezes, 12th April 2009