When looking to purchase an overseas property, deciding the best way to pay for your place in the sun can be a challenging one, sometimes the options open to us aren’t very clear. Most people think the only option is to use their savings and don’t explore all the available options. Did you know that as the current Mortgage rates in Portugal are so low, from only 2 % and with current UK saving rates commonly between 3-4 % it is always best to explore all your options!

beach in portugal

Many British and indeed other northern Europeans have continued to buy property in this ‘place in the sun’ for many years and although a large proportion today buy in cash many need to finance the purchase with a mortgage. Up to a few years ago only a limited number of lenders, in Portugal, would consider lending to foreigners. Now things are changing. More banks are realizing that this market is attractive. If a purchaser is non-resident in Portugal they can borrow up to 80% of the value of the property.

With current Euro interest rates been low, a lot of buyers are opting to borrow here as opposed to increasing their borrowing in the United Kingdom. A word of caution however is that borrowing in a different currency means the debt is subject to exchange rate fluctuations. Maximum mortgage repayment terms are typically 15 to 20 years and it is possible to obtain 25 years with some lenders.

Borrowing in later life now tends not to be a problem as it may be possible, in certain circumstances, to obtain a mortgage at the age of 75.

If you are asset rich and cash poor, unlocking capital from an existing owned property, for any purpose, can be achieved by taking out a mortgage. It is however a good idea to look at the whole package being offered as a low headline interest rate might mean a high early redemption penalty and or the requirement of an expensive life assurance. With a lot more choice now available, it means that getting the right deal is very important.

You can use the services of a local mortgage broker who will survey the market and recommend the (best lender based on the individuals requirements) bringing you one step closer to owning that “place in the sun”.

According to the World Travel and Tourism Council the Algarve is set to become the most sought after holiday destination in Europe!

In their summary the WTTC’s analysis of the Algarve said that the Algarve has still not tapped into its full potential, in fact it’s far from it. The Portuguese government are doing all they can to put together an extensive package that will encourage investors to the Algarve, and should have their new plans in effect sometime in the near future.

The WTTC also went on to say that the properties available in the Algarve offer massive value to anyone wishing to purchase now, with capital appreciation targeted at 15% per annum over the next five years.

If you would like further information about Property Position, Price and Potential in Portugal contact us, we will be glad to help.

www.portugalpropertydeals.com

PORTUGAL – Worlds Number One Region For Property Investment

Why Portugal? Location, location, location. The position and ease of access makes Portugal a convenient, inexpensive and quick destination to visit. Don’t forget the Stunning beaches, long summer season, great rental returns and high quality building standards. The first half of 2008 has seen almost 7 million visitors land in Faro airport. With a new airport and additional flights, this is set to increase.

The Algarve is the southernmost region of mainland Portugal. It has an area of 5,412 square kilometres with approximately 410,000 permanent inhabitants, and incorporates 16 municipalities. Thecoincides with the Faro District, and has as its administrative centre the city of Faro, where both the region’s international airport (Faro/Algarve Airport) [FAO] andpublic university (the University of the Algarve) are located. Tourism and related activities are extensive and make up the bulk of the Algarve’s summer economy. Fish, seafood and fruit production, which includes oranges, carob beans, figs and almonds, are other important activities in the region. The Algarve is among the most popular tourist destinations in Portugal, its population more than doubles in the peak holiday season thanks to a high influx of visitors. XXThe Algarve is hilly, but traversed with rich valleys. Its highest point is Fóia, 902 metres (2,960 ft), in the mountain range of Monchique. It is composed of 5,412 square kilometres with approximately 410,000 permanent inhabitants (density of 76 inhabitants per square kilometre). This figure increases to over a million people at the height of summer due to an influx oftourists. The Algarve has several cities, towns and villages. It also includes some islands and islets. The region is also the home of the Ria Formosa lagoon, a nature reserve of over 170 square kilometres and a stopping place for hundreds of different birds.

The region’s capital is the city of Faro. Other cities are Albufeira, Lagoa, Lagos, Loulé, Olhão, Portimão, Quarteira, Silves,Tavira, and Vila Real de Santo António.

The length of the south-facing coastline is approximately 155 kilometres. Beyond the westernmost point of Cape St. Vincent it stretches a further 50 kilometres to the north. The coastline is notable for picturesque limestone caves and grottoes, particularly around Lagos, which are accessible by powerboat. There are many other beautiful and famous summer places such as Albufeira, Vilamoura, Praia da Rocha, Lagos, Armação de Pêra, Alvor, Monte Gordo, Tavira, and Sagres.

Algarve is also famous for its luxury resort & hotel spas by the beach.

In the 1960s the Algarve became a very popular destination for tourists, mainly from Britain. It has since become a common destination for Germans, Dutch and Irish people. Many of these tourists own their own property in the region. There are Algarve-based English-written publications and newspapers specifically addressed to this community. In addition to the natural beauties and plenty of beaches, the Algarve has invested in the creation of a network of golf courses. Well-known beaches in the Algarve range from Praia da Marinha to Armação de Pêra. A well known spa town is Caldas de Monchique.

The Algarve is a popular destination for tourism, primarily because of its beaches,Mediterranean climate, safety and relatively low costs.

Algarve’s mild climate has attracted interest from Northern Europeans wishing to have a holiday home or residence in the region. Being a region of Portugal, and therefore in theEuropean Union, any EU citizen has the right to freely buy property and reside with little formality in the Algarve.^[2] British expatriates, followed by German, Dutch and Scandinavians, are among the largest groups wishing to own a home in this sunny region of Portugal.

Tourism plays an important role in the economy of the Algarve. A large number of seasonal job opportunities are tourism-related and are fulfilled by thousands of immigrant workers from countries like Brazil, Ukraine and Cape Verde, among others.

In March 2007, the Minister of Economy, Manuel Pinho, announced the creation of the “Allgarve” brand, as a part of a strategical promotion of the Algarve as a tourism destination for foreign citizens.