Property
Inner city renovations
O
Report by property expert Robert Bijker
ver the past two years there has been a noticeable increase in construction/ renovation of old properties in city and town centres; these old properties are often situated in good locations and are in short supply, and have consequently attracted investors looking to capitalise on the opportunity. The government offers incentives to renovate or rebuild old properties and ruins in town centres as part of the urban rehabilitation programme, such as a lower VAT rate (6%) on construction materials which effectively reduces building costs by more than 10%; no cost for the
building license; exemption of IMT (property transfer tax) and exemption of IMI (council tax) for three years. In addition, some banks are offering preferential (lower) interest rates to finance the renovation work. The rehabilitation program supports the improvement, renovation/ restauration, repair and conservation of property for residential use and, in general, supports to make a town more pleasant to live in. Despite these favourable incentives and conditions, there are still many old properties that remain unused and sometimes in ruin – an undesirable situation in light of the stress in various cities and towns for affordable housing. Good news is that
GOLF PROPERTIES - VILLAS - APARTMENTS - TOWNHOUSES - PLOTS
AMI: 6232
SINGLE STOREY 3 BEDROOM VILLA AND POOL NEAR VILAMOURA. Exclusive Listing of Yellow Homes - Located on peaceful plot in the village of Benfarras next to Vilamoura, sits this rustic 3 bedroom bungalow villa. The property offers privacy on a fenced and walled plot of land without being isolated. The traditional wood and bamboo ceilings combined with the Santa Catarina floor tiles gives the villa a rustic and charming feel to it. Price: â‚Ź365.000 Ref: P-OLT EC class G.
Contact us! Our email is info@yellowhomes.com or call us on (+351) 289 301 294 Find out more info on our website www.yellowhomes.com
30
the government has plans to allow local municipalities to dramatically increase the council tax (IMI) where a property has been vacant for more than two years, and could start with an increase in IMI by 600% as early as 2019. The IMI can continue to increase by 10% per annum, up to a maximum of 12 times the original IMI value. As demand for this type of property is outstripping supply, it remains a financially rewarding opportunity to buy and renovate a property in urban centers. However, when on the market, these properties are more often than not too expensive for lowand middle-income families due to their prime location. Various banks still have many unsold foreclosed properties on their books. It is amazing to have witnessed the speed at which they repossessed homes at the beginning of the crisis and even more amazing to watch the slowness of properties being sold off. However, Lonestar who owns 75% of Novo Banco has reached an
www.simplyalgarvemag.com
