Buying property in the Algarve - a practical guide to help you find the perfect home in the sun!

Ask yourself WHY am I buying property?

First things first… WHY are you buying property? This is the most important question, more important even than the type of property you want, location or even budget. Knowing why you want to buy property, will help you figure out the rest. 

Are you looking to relocate to the Algarve? 

Maybe you´re looking for a smart investment that can generate extra income? 

Do you want a combination of the two, a holiday home that can generate extra income when you're away? 

Figuring out your end goal is the first logical step to buying property overseas.

HOW am I going to do this?

Ok you've figured out why you want to buy property, now you need to figure out how to do it. If you´re not in Portugal, you can absolutely try to go about this yourself, though this can be tricky. There are professionals out there ready, willing and able to help you, and let's face it, you owe it to yourself to get the best service possible. Keep reading to find out HOW to reach your goals. 

WHO can help me?

Why overwhelm yourself when there are professionals out there who can take the hard work off of your hands and make this an exciting experience for you? So WHO can help you make this process an easygoing one?

Real Estate Agent - A good agent will not throw properties your way. They will want to give you a call, listen to you, ask important questions, make recommendations, and help you narrow down your search. Having your best interests in mind, they can also give you valuable information on locations, lifestyle, and also the finer details of buying property overseas. 

Find that one agent that you connect with and trust, you owe it to yourself! And with the technology available today, virtual tours will show you not only properties themselves, but the surrounding areas!

Mortgage Broker - applying for a mortgage is one of the most popular ways for expats to purchase property in the Algarve. Of course you can do it on your own, but why not let an expert deal with it? Mortgage Brokers know financing, they know the banks, and they'll get you the best deal out there, period. Even better, find a reputable real estate agency with an in house mortgage broker and you´re as good as gold!

Lawyer - A lawyer is a huge help if you are buying property overseas. They can help you

• Apply for your NIF (or tax) number, essential for purchasing property
• Act as your fiscal representative, particularly important if you are not living in Portugal full time.
• Carry out due diligence and oversee the promissory contract
• Assist you to the signing of the deed
• If you are relocating, they can help you in selecting and applying for the most suitable Visa program 

A great real estate agent can put you in touch with a lawyer, and take that burden off of your shoulders as well!

WHERE should I buy?

If you don't know the Algarve, you´ll want to figure out your personal goals first. If you´re looking to relocate, you´ll need to ask yourself what kind of surroundings and lifestyle you are looking for. Would you prefer being close to the ocean, or in the peaceful hillside? Also if you are coming out with your family you´ll need to look at schools. A great real estate agent will be able to recommend the best places based on your personal needs, and give you insight into the locations that will best suit you.  

If you´re purely investing and looking for the best locations to generate income, there are places that are tried and true, like the Central Algarve. But if you want to get the most ROI, you may want to consider the Western Algarve. The lack of hotel rooms in the area, plus the ever growing popularity as a tourist destination, makes this one of the best locations for a sound investment. 

WHAT does the buying process look like?

If you´ve got a great team working for you, the buying process is pretty straightforward. Here are the steps you´ll go through

• Reservation - take the property off the market with a deposit. This is a refundable deposit that is held in escrow by your lawyer, while the due diligence process is being done.
• Promissory - here is where you commit to the terms of the sale. A second deposit is completed and at this point you are almost there! At this point there is no looking back, as if the seller decides to back out, you will be refunded double the amount of the deposit. On the other hand, you will also be committing to the purchase, as this deposit is non refundable and you will lose it if you decide to back out. 
• Deed - The final step to the buying process (and the simplest), the signing of the deed will legally give you full ownership of the property. Congratulations you are a homeowner in Portugal!

Are you looking for a trusted team to hold your hand through the buying process and even beyond? We offer a turn-key service, assisting you with furnishing your property, getting your utilities switched on and renting out your property to generate income! Give us a call on +351 289 513 434 or send us an email on info@idealhomesinternational.com.