A guide to finding and buying a property in the Algarve

Claudia Boto – Vernon Real estate

Who are we?- Founded in the 1980’s

- Based in Carvoeiro

- Continued management/ ownership

- Diverse listings

- Highly qualified mulitlingualteam

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Portugal• Mild Climate

• 3000 hours of sunshine

• 850km of coastline

• 3rd most peaceful country in the world (by global peace índex 2017 )

• Among the top 10 World’s Best Places to Retire in 2017 (By international living.com)

• Elected the Best Europeancities & beachesDestination for the 3rd time (by www.Europeanbestdestinations .com)

• Population of 10.3 million

• Its all about Lifestyle

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Algarve• One of Europe´s best known

destinations (nominated by World travel awards)

• Located South of Portugal

• Top golfing destination

• Top beach destination

• All year round good weather

• Within best place to retire overseas

• 450 thousand permanent inhabitants• Rises to 1 million in summer months

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• Natural reserves & wildlife

• Bird Watching

• Fishing (underwater, game and line)

• Different sand & rock beaches

• Several Hotel resort & Spas

• Marinas

• A paradise for several sports & Adventures

• Entertainment day & night

• Casinos

• Art & handycraft

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Algarve

• Typical villages

• Cultural heritage

• Golf (around 35 courses)

• Rich gastronomy

• Algarve is the ideal place:

• To live comfortably

• Make friends

• Stay busy

• Relax and recharge

• Enjoy your retirement

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Algarve

• Share the secret…

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Algarve

Property Market2017 – First Quarter

Foreign investment in Portugal made up 20% of overall real estate transactions

• NHR, French & Scandinavian investors

• Second home, relocation properties & investment

French 26%

British 18%

Brazillian 8%

Chinese 13%Swiss 4%

Belgians 5%

All others 26%

Foreign Investment

French

British

Brazillian

Chinese

Swiss

Belgians

All others

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House Price change

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% change over a year earlierAverage value of bank evaluation of

living quarters (Euro per sq. m.)

Source: Instituto Nacional de Estatistica

Q1Q2 Q3 Q4

2017 0.64

2016 -0.19 1.62 1.03 2.23

2015 0.60 1.88 0.87 1.06

2014 -2.07 1.31 2.29 -2.33

2013 -3.73 3.36 0.00 0.00

2012 -1.86 -1.42 -0.96 -0.97

2011 1.32 -2.08 -2.65 -2.36

2010 0.51 -0.08 -2.38 -0.78

2009 0.00 0.88 0.17 2.27

2008 -1.05

% change over a quarter (QoQ)

In 2017 average price per m2 for a 2 bed apartment is €1368/m2

Tourism revenue

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Tourism Revenue (Million of Euros) Revenue by Country of Origin

Source: Banco de Portugal

Where to start your property search

• Western, Central or Eastern?

• Holiday home, rental investment orpermanent residence?

• Type (apartement, villa, plot, commercial)

• Budget

• Choose a reputable & licensed agent

• Properties can be listed with variousagencies

• Schedule viewings & request all information

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Silves

Ferragudo Alvor

Monchique

Carvoeiro

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Carvoeiro• Gained town status in

2001

• Population of 4,000

• All year round resort

• Various beaches

• Golf courses

• Condos; apartments & townhouses, villas, resorts

• Low rise – strict planning controls• Family friendly• Diverse nationalities Claudia Boto

Carvoeiro

AC236 - Carvoeiro

• Fully renovated furnished apartmenton popular resort only few minutes drive from centre & village

• 1 bedroom, 1 bathroom, lounge/dining, fully fitted kitchen, balcony, air conditioning.

• Price: 135,000€

• Purchase cost, (taxes, lawyer, notary , registrations) = €4,900 (3,6%)

• Rental income & expenses

• Minimum 10 weeks = €6,000 (guaranteed)

• Fixed costs = +/-1,780€ p.a

• Return on investment: +/- 4,4% (gross)

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VC416 – Srª da Rocha - Porches Spacious townhouse on low rise

condominium w/ sea views

• Furnished, 2 bedroom, 2 bathrooms, 1 WC living/dining, kitchen, large terraces, privategarage, comunal pool & gardens.

• Air conditioning, low fees

• Just a stroll to beach, restaurantsand shops

• Price: 275,000€

• Purchase costs (taxes, lawyer, Notary, registrations) = €14,800 (5,3%)

• Rental income & expenses

- Minimum 16 weeks = 12,800€

- Fixed costs = €1,850 p.a

• Return on investment +/- 4,6% (gross)

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VC308 - Carvoeiro• Excelent conditions spacious

townhouse, only short walk to beach& restaurants, shops. Low fees.

• 2 bedrooms, 2 bathrooms, 1wc living/dining, fully fitted kitchen, largeterraces & roof terrace.

• Sea & village views from terraces

• Communal pool, garden Parking

• Price 325,000€

• Purchase costs (Taxes, Lawyer, Notary, registrations) = €18,800 (5,8%)

• Rental income & expenses

- Minimum 16 weeks = €14,500

- Fixed costs = 1430€ p.a

• Return on investment: +/- 4,4% (gross)

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VC464 – Sesmarias• Beautiful renovated

detached villa with seaviews

• 3 bedrooms, 2 bathrooms, 1 wc, largeterraces

• Carport, pool, garden

• Short walk to amenities.

• Price: 460,000€

• Purchase cost (Taxes, Lawyer, Notary, Registrations); = €30,000 (7%)

• Rental income & Expenses

-Minimum 16 weeks =

€22,000

- Fixed costs = €2,300

• Return on investment : 4,8%

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VC472- Gramacho Carvoeiro

• 2 storey villa set in prestigious Golf course

• 3 bedrooms, 3 bathrooms, 1wc living/dining, fully fitted kitchen, largeterraces, carport, heated pool, gas central heating

• Garden & Golf views from terraces

• Discounted golf rates

• Price: 560,000 €

• Purchase costs (Taxes, Lawyer, Notary, registrations); = €39,000 (7%)

• Rental Income & expenses

- Minimum 16 weeks = €30,000

- Fixed costs = €3,900 p.a

• Return on investment: +/- 5,3% (gross)

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LC004 – Carvoeiro

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• Building Plots from2000m2

• With permission to build up to 350m2 dream home with seaviews from top floor

• With garage, pool, basement

• Stroll to tennis & fitness centre & amenities.

• Price from: 220,000€

• Purchase costs (Taxes, lawyer, Notary, Registrations); =€18,600 (8,4%)

• Building €/m2:+/-1,200€

Guide to buying• Residency requirement (Long stay Visa from the Portuguese Embassy)

• Fiscal representative (a lawyer can be your fiscal representative)

You have found the property for you…what next?

• Make an offer through your agent – they will be able to advise you on prices

• After price….. Terms (timings, deposit, furniture etc)

• Instruct an English speaking licensed lawyer (searches, confirm it correspondswith the house).

• Transfer deposit to lawyer

• Sign promissory contract

• Completion (sign Deed)

• After sale assistence

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Thank you Claudia Boto