2013 Could Be a Good Time to Buy Portuguese Property

Although Portugal is still facing financial difficulties, it has taken extensive steps to towards economic recovery, and is still regarded as being one of the best places in the world for retirees, and is especially popular amongst the British. A recent survey by an insurance company looked at 25 different countries, assessing different criteria.

These included the total number of hours of sunshine, temperature, rainfall, the cost of living and health care, petrol costs, and of course property prices. Portugal came a very respectable second after Malta.

Anyone choosing to retire to Portugal will find it quite a familiar environment that has the third-largest European British expatriate community. They’ll also probably enjoy an enhanced standard of living, and it’s worth remembering that Portuguese property is up to three times cheaper than French property.

Buying property in Portugal is a relatively straightforward process, although the transaction can take several months to complete, but generally takes an average of three months. Anyone wishing to purchase a home in Portugal has to have a fiscal number, also known as a tax card. It is easily obtained from any tax office and costs just a few euros.

After this is simply a question of having a legal document drawn up by a solicitor and signed by all the parties concerned. This protects the buyer against gazumping, and also protects their deposit. The sale completion is usually carried out by a notary, but can also be completed at the Land Registry Office. It’s also important to register the property with the Land Registry Office.

Landlords in Portugal Able to Carry out Background Checks on Tenants

Landlords in Portugal are now able to carry out background checks on tenants as a new system has just been launched which is been fully endorsed by the National Data Protection Committee. The aim of the system is to stimulate confidence within the rental market, as it should help reduce the risk of damage to the property or missed payments.

The background check service was launched at the beginning of the summer, and it’s hoped it will attract more investors and property owners to put homes into the rental market. There are two types of tenant checks available which are Expressed References and Complete References.

The first type of report detects possible problem areas using public information from Social Security and other related services. The second report carries information about the tenant’s employment status as well as any references from former landlords.

Apparently the service, Renda Protec doesn’t breach any privacy rights as the information is only given with the tenant’s permission. Such information is already commonplace in countries where the rental market is more fully developed. For example a survey a couple of years ago carried out in the UK found 98% of tenants who had received a positive reference reports went on to be problem free, while 83% of those who had defaulted on payments hadn’t undergone any professional background checks.

At the moment Portugal isn’t particularly popular amongst investors as it has a history of ineffectual eviction processes and is relatively high risk, something that it is seeking to change. Tenants are also able to purchase their own referral reports, enabling them to negotiate more effectively when choosing a new rental home.