Brits buying property abroad and looking to experience that unique Mediterranean atmosphere, sun-kissed beaches, and European heritage have often turned their gaze towards the majestic Portugal. A great alternative to Europe’s overpopulated cities, Portugal has been the choice for many expats looking for their second home abroad.
However, with recent reports suggesting that Portugal will not be on the initial list of air bridges from UK, there has been a clamour from many tour operators and holiday makers alike to ensure that this is not the case come tomorrow when the list is announced. These demands may fall on deaf ears, but it highlights how Portugal is a real favourite amongst Brits as a holiday destination. This is for many reasons, first and foremost, Portugal is England's oldest ally since 1147 when English crusaders helped King Alfonso I capture Lisbon from the Muslims.
Famous for its national drink, port, beaches and dramatic scenery, Portugal is also an affordable destination, and the second best in value after Bulgaria. Younger generations have heard of the Livraria Porto bookstore in the Portuguese municipality of Porto, which has inspired the Hogwarts Library in JK Rowling’s Harry Potter books, while older ones are enthralled by its rich history, being one of the oldest states in Europe.
Portugal combines contemporary lifestyle with antiquated charm, and despite the recent financial crisis, the country has managed to recover, offering expats attractive tax and residency incentives and low mortgage rates.
Buying property in some of Portugal’s most popular locations
Whether you’re looking for a holiday home, your dream property to retire to or an investment, Portugal offers a variety of properties at different locations and prices. From Algarve’s beaches and golf courses, to Lisbon’s hip neighbourhoods and Porto’s famous wineries, Brits have many choices depending on the kind of lifestyle they want to experience and their budget.
Algarve’s property developments in such resort towns as Vilamoura and Quinta do Lago are sought after and expensive. A two-bedroom apartment can be up to €360,000 while a three-bedroom villa can worth around a million. Prices might be the same in Western Algarve, but, there, life is quieter as in the fishing town of Lagos where property prices range from €200,000 to €5 million. In the booming area of Eastern Algarve, properties can be cheaper, and you can find some attractive opportunities in the town of Tavira where country villas can be around €450,000.
Lisbon’s Blue coast, Costa Azul, is one of the most peaceful areas with such fishing villages as Sesimbra and Sines, most famous for its cuisine and seafood restaurants. Here, you can find five-bedroom villas ranging from €1-3 million or a three-bedroom house for €200,000.
Townhouses and apartments in developments can be a cheaper alternative, with the latter offering communal facilities such as pools and gardens with shared maintenance costs.
Financing your dream home in Portugal
If you are not transferring funds or re-mortgaging your UK home, you will need to consider your borrowing options, such as taking a Portuguese mortgage against a property. The larger amount of cash you deposit the easier it will be to secure a loan at a reasonable interest rate. You will need to also have in mind currency fluctuation as you will be better borrowing in the same currency you will be repaying the loan.
This is why, it is important to consult a specialist foreign exchange company such as Universal Partners FX right from the start. UPFX can help you manage currency fluctuations by fixing the rate, as the final price of your home could vary significantly from the time you made your offer.
When moving large amounts of cash, it is best to get in touch with UPFX’s currency specialists where they can offer you competitive exchange rates and the best value for your money. Find out what your money is worth by giving them a call or requesting a free quote.