I an new to this forum so I apologise if I am asking questions previously answered My husband and I love CVO and have finally decided to look at purchasing a 2 bedroom apartment/townhouse with a communal pool in the next 12 months. I would appreciate any guidance anybody can give, and just wanted gain an understanding of monthly costs etc and the funds used to purchase a property.
Purchasing a Property
Is it more beneficial to take a mortgage out on the property in Portugal and could this be taken into account when paying tax (though somebody has mentioned to me that short term lets are only taxed on 15% of gross income).
Is it easier to borrow on UK home to avoid exchange rates on foreign mortgages?
We want to purchase somewhere within a 20 min walk of the centre - can anybody suggest anywhere?
Monthly costs - can anyone give me approx. amounts for:
Property management (hold keys, meet and greet guests, cleaners)
Cost of pool/garden/building maintenance
Estate Agents - (somebody mentioned Winkworths and one on restaurant hill (but they could not remember the name).
Any help anybody can give would be really appreciated
If you intend to rent then speak with a reputable management company BEFORE you buy and ascertain how marketable a property might be and the likely rental income & associated costs.
Finally find a good solicitor( several have been recommended on here) the legal process is fairly straightforward but you need a solicitor who will do a thorough job for a reasonable fee. Remember much will occur whilst you are in UK not Portugal so you need a strong and trusting relationship with the professionals you choose.
Rocha Brava is a very well run estate with communal pools, tennis courts, restaurants and a gymnasium. It is set in beautiful, well kept gardens, and there is a mix of villas, houses and apartments.
I can supply details of the solicitor we are using if you wish. She came recommended by Steve and by others on this forum.
Watch out the price on the contract is the same as the purchase price and be weary of fees the estate may try to charge on top of the purchase price via the lawyer. We noticed a reduction of the purchase price in the contract and suddenly as all was completed the lawyer tried to claim 10K for the agent. Both in cahoots I think.
If you do not want a private pool maintenance for gardens and communal pool upkeep can be vast. Costs out of your own control so look into the charges and possibly how they have increased, any likely sudden extra costs. I'm not saying you don't have costs with your own garden and pool, but it is your private area and you can reduce costs if times are a bit harder one year, ie do your own gardening when you are there, forget having grass etc. Remember the staff need to be paid for on reception etc. some however feel a comfort of buying on a communal site.
properties in portugal do not typically have good insulation, unless they are very new. Factor this in as even a property of 10 years or so old may have poor insulation which could affect your costs for heating. Double glazing will help. Also older properties may suffer dampness. Watch out for de humidifiers or smell of damp. If it's there in the summer it will be there in the winter too. hopefully if you see their electric consumption you can decide if that is good for you. A wood burner is great in the winter. If you have the choice of a newer property, rather than older, you could have lower heating bills, however older property may be a lower selling price.
You may need to pay a villa manager a fee of between €90-€150 per month. Choose carefully.
If you rent out the tax can be 15%. Depending on your income you may have to pay 6% IVA. If you do, you can claim your own outlay in IVA so long as you obtain a Factura (invoice). Include the accountant's fees, possibly somewhere between €700-€2000. I know that is a huge difference. We pay a lot, but I do feel very safe with him.
Factor in advertising to rent.
You need to be legal and above board. Widge is the best person on that front. He has posted loads on the forum.
Cable/IPTV package could cost in the region of €50 a month, plus initial box cost. IPTV does not have to be purchased all year round however.
before you think I'm never buying, it's not worth it, I love our villa and CVO and cannot wait to come and spend time in my beautiful home. I am sure you will feel the same as do my friends on the forum who have properties all around CVO.
there is another communal site very close to the square. Send a PM to Joeysoap who has an apartment. monte Dourada. He is not selling but he may be able to advise.
There are some relatively new apartments at the top of Solferias which have excellent reviews on trip advisor from holiday makers. (monte Santos). They are an easier walk into the square than the walk back as like Rocha Brava you are walking up hill going home. Having said that a quick taxi up hill probably wouldn't cost too much to either or work off the big meal walking.
Just seen something on this forum about renting out on Monte Santos and RB. maybe read that too.
Don't be put off, we love CVO, but just take your time and find out as much as possible. If I could turn back the clock I would change so many aspects of what happened with our project, but the end product is amazing, but its not cheap to keep a property, however for many of us, we hope to break even in renting out to folk like yourselves. I know I never have to pay for a accommodation (as such) and our family can enjoy the villa too. When we come to retire we will enjoy the winter sunshine and still rent out in the summer, so best of both worlds. Its simply not plain sailing all the time.Wiltsie wrote:After reading LICY's post i think we'll stick to renting.
if you're buying, the recent collapse of the € has made everything much cheaper for £ buyers,Wiltsie wrote:After reading LICY's post i think we'll stick to renting.
if you go on renting, rent the properties priced in € for similar rationale,
I agree tricky. Just go in with your eyes open and then there is no disappointment. Hindsight would have saved us a fortune. CVO is amazing place to holiday. I got over all the stress and now nearly completed the goals set.tricky wrote:I have to say that our experience of buying in cavoeiro was very easy. As previously said, don't exoect to make a profit whilst renting, unless you have a really luxurious property, but the knowledge that we had a getaway whenever we need it is profit enough. We have a excellent manager and own on a very small complex with year round residents and holidaymakers. I think it's the best mix. Go for it, you won't regret it
Thanks for your responses. I am not bothered about making a profit as long as it can pay for itself. Can anybody recommend a bank or mortgage broker as will have to get a mortgage on the property as want to keep it separate to my UK home (don't really want to take my equity out). Would then rent out in euros.
Any advice regarding mortgage and renting in euros would be appreciated, if you know reasons to keep everything in sterling.