The property market is developing again
In these uncertain and unpredictable times it is always reassuring to have some financial security in life. More and more people are taking a view that buying property is once again the right course of action, almost zero bank interest rates have had a positive effect on the property market in our region. What is the point in leaving a pension pot or cash assets in an account bearing little or no return?
Although not yet at the levels seen in the boom years of the early to mid-noughties, nevertheless the demand for good quality real estate objects, is particularly high in developments such as Quinta do Lago, Vale do Lobo and the adjacent developments. Once again there are large cranes towering above numerous plots in these areas, indicating yet another enormous state of the art super villa is emerging from the location where previously a modest property once stood. Also banks are now becoming more keen to lend and offering very reasonable rates, albeit it with much stricter lending criteria, one example being that there is now not a single bank offering loans secured against the shares of an offshore company owned property. Typical offers are now 70% based on the banks valuation and +/- 2% fixed interest rate. The age limit is 75, in some cases 80, based on income not assets.
If deriving an income for a property purchase is a consideration, then buy-to-let is also once again an option. Due to the introduction of the Non-Habitual Residence scheme which permits’ renting a property rather than purchasing, and the Golden Visa initiative, the yields have increased substantially. As always letting for the high season summer months can also mitigate a large proportion of the running costs of a property.
Our licensed Estate Agency is able to provide advice on any of the subjects mentioned in this article, please contact us for an obligation free informal chat.
By Doug Styles