Here at PropertyForSalePortugal.org we are specialists in off plan property in Portugal. In this article will outline and explain the main reasons why this kind of Portuguese property investment option can be beneficial for most of the international investors.
When you invest in off plan property, it allows you as the investor, to make your purchase at the lowest possible price. This way you will achieve the maximum possible return on investment.
Some investors choose to rent their property for a number of years to further increase their capital gain and income. Renting your property is a great way to make extra income while you’re property value is increasing steadily.
When you buy off plan property in Portugal many developers offer very beneficial payment schemes. When you work with the most reputable property developers and property development companies you will achieve the best results for your investment.
When you buy off plan property it allows you to make your purchase at the lowest price possible, this is because you buy your property before the development and construction begin. When the property is finished, the prices will already have arisen due to the market forces, and due to the end appeal of the finished property. Portugal property investors can then choose to sell their property with the returned from 10% to 60%, while not even having paid the full purchase price of the property. The profits from off plan property investment deals can go between 30% to 100% per year, depending on the down payment and the speed of the completed construction.
Of course this is not as easy as it seems, because you’re property investment needs to have a good location, high demand is crucial to sell the property quickly. You need to buy an off plan property investment where there is a high demand so that you can resell as quickly as possible.
Why is Portugal property so much cheaper when bought off plan?
The property is cheaper when you buy it off plan because the developers of the project office to sell a few units before they start construction, in order to reduce financial risk and debts. The developers know that when the buyers cannot see the finished property they will have to sell it for a lower price, because the buyer has to rely purely on the reputation of the developer, on the property location, and on the design and pre-rendered graphics of the final product.
Another great advantage of buying off plan properties in Portugal is it many times you need to pay only 20% to 40% of the purchase price on deposit. The rest can be payable on completion of the property and this may be financed by a mortgage if that is your choice.
When you decide to invest in an off plan property in Portugal, you have to first decide what kind of strategy you will adopt, so you can make the provision of your return on investment. I hope this article was helpful for you to understand a little bit more about off plan property investment purchasing in Portugal.
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Thanks for the info on property investment in Portugal! Great post!
Allen Taylor