If you select the right property, real estate is one of the most profitable investments you can make. However, poor property investment decisions can harm your financial health. This is because it costs money to build this asset class. You should be cautious at all stages of the property-buying process. We have created a comprehensive checklist to help you navigate the home buying process. To help you navigate the process, we have included a list of things to consider when purchasing property in Portugal.
Complete a Checklist before you Buy a House
When purchasing property in Portugal, there are things to consider. Below is a comprehensive checklist for home buyers that covers all aspects of the property buying process.
1. Establish a budget
Before you buy anything, you should know your budget. It is a crucial step in any major investment and should be planned well in advance. Start by looking at all your expenses and income sources to determine how much you will have each month after paying all necessary living costs. To determine how much, you can afford for a down payment, look through your savings and investments. Set the budget accordingly.
2. Arrange the Finances
The down payment could be huge if you plan to buy an expensive plot of land or an independent home. To ensure that you are on the right path, it is a clever idea to have a plan for managing your funds before you begin to look at properties. Although it is quite easy to obtain financing in Portugal, you should consider the type of documentation that is required and the procedure. To get an accurate idea of the loan amount, the interest rate, and the necessary property documents checklist, it is a good idea to speak to a loan officer. This will allow you to determine if you are able or not to pay the monthly installment.
3. Select the location
The next step in the home buying process should be to choose the right location. Certain locations are more profitable over the long term because they appreciate at an impressive pace. Some locations do not develop as quickly, so the property’s value remains stagnant. The location also affects the rent. As it is difficult to find an affordable property in a well-developed area, it is best to look for the next best option, one that will be able to grow in the future. Before you invest, make sure to do thorough research and evaluate the growth potential.
4. Construction Quality
It does not matter if you buy a flat from an individual builder or one that is part of a residential community, it is important to evaluate its construction quality. Although many builders build houses that look great from the outside, the quality of the material used in construction is often poor. Do not fall for substandard quality and always consider arranging a property survey from a qualified engineer.
5. Water and Power Supply
If there are frequent power outages and water shortages in your area, even a luxuriously furnished home, will not provide comfort. If this is the case in the area where you wish to buy, make sure you have a back-up system in place. You should therefore check the power and water supply, before buying.
6. Need for Furnishing/Renovation and the Cost Involved
Before you buy a property in Portugal, it is important to know if the property needs renovating or new furnishing. A few homes come fully furnished, while others are not. Furnished homes are more expensive than un-furnished properties, but investing in them can help you save time, money, and effort dealing with contractors, architects, and labourers.
7. Parking Facility and Other Amenities
It is important to verify the availability of parking spaces when you are looking for a house. The parking space is usually included in the price of a home in a residential community. Depending on your needs and budget, you may choose to buy an additional parking space. If you are looking to buy an independent home, you might want to look at all the parking spaces available before you sign the contract. You should also check if there are any nearby amenities like a hospital, school, bank, gymnasium, or market.
9. Builder Reputation
There are many false promises made by builders on the market and many builders fail to deliver the property on schedule. Others also do not provide high-quality construction. Before finalising the deal, make sure you do thorough background checks to confirm the reputation of the builder. It is best to choose a builder with goodwill in the marketplace.
“We are real estate agents in Comporta and Melides, on the Alentejo Coast in Portugal, Europe.” You can visit our website https://www.livingportugalproperty.com/properties/comporta-property-for-sale/