Interest in property in Portugal is increasing but potential buyers have been warned to be realistic about prices and finance, according to a local agent.
Viewings of property in the Algarve have tripled in recent months. However, many of these are people with unrealistic expectations about price levels or the amount of finance they will be able to secure, says a leading Portuguese property expert. Keep reading to learn more.
Buyers have unrealistic expectations about what Portugal property their cash will buy
According to Stephen Anderson, Portuguese property expert, many potential buyers are arriving in Portugal with little idea of the current price of homes. He said: ââ¬ÅMore often than not, we have to manage clientsââ¬â¢ expectations which can be quite unrealistic.
ââ¬ÅWe have found that many clients coming over on viewings have very little finance to put down and arrive under the premise they will be able to secure a high loan-to-value mortgage, which are in fact typically constrained to borrowers that have, and can prove, a high income.
ââ¬ÅOthers, arrive with some ââ¬100,000 but have way over-estimated what they will be able to purchase, expecting to find sea-front apartment for that amount.ââ¬Â
While property prices in Portugal have fallen significantly since the ââ¬Ëcredit crunchââ¬â¢, banks have simultaneously become much more stringent with their lending criteria. It is possible to secure an 80 per cent mortgage, but interest rates on such loans often exceed 6 per cent.
Mr Anderson added: ââ¬ÅClients should certainly be looking to put down at least 30 per cent to have some options here, and be able to demonstrate an income of at least ã5,000 per month to be able to qualify for a 70 per cent loan.ââ¬Â
Nick Marr, director of leading overseas homes website HomesGoFast agrees. He said: ââ¬ÅMany buyers are heading to the Algarve expecting to pick up a villa at a bargain price and with 100 per cent finance.
ââ¬ÅWhile there are some superb deals to be had, buyers need to understand that theyââ¬â¢ll still need a substantial deposit and be able to prove a high level of earnings to secure the finance they need to buy.ââ¬Â
Are you looking to buy property in Portugal ? Lisbon , Vila Do Bispo , Tomar , Ferreira Do Zezere , Alvaiazere
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Nick Marr
I am an internet entrepreneur with a passion for driving big audiences and a love for real estate. I have had plenty of ups and downs which has given me the experience to help others launch their own businesses. I enjoy projects that save consumers time and money, challenge convention and add real value to peoples lives.