Ideal Homes Portugal by Ideal Homes Portugal

CONTENTS

Ideal Homes Portugal

Property Viewing Trip

Mortgage & Finance Options

Purchasing Process Explained

Currency Exchange

Aftersales Care & Rentals

Properties

Portugal

The Algarve

Eastern Algarve

Central Algarve

Western Algarve

The Silver Coast

A Golfers Paradise

Things To Do

I DE A L HOM E S PORT UGA L

Why Portugal? Always a firm favourite with holiday makers, Portugal now boasts a sizeable population who came to enjoy the beautiful Algarve beaches and warm hospitality and ended up buying a holiday home, or - in many instances - stayed permanently to create a new life for themselves and their families. The reasons they fell in love with the Algarve are obvious: flight times from the UK under three hours, the Mediterranean climate, which frequently hits 35 degrees C in the summer, and the low cost of living, which includes excellent value local food and wine. You’ll find lots more inspiration, and information, on p22-29 of this guide.

Why Ideal Homes? Ideal Homes Portugal understands that purchasing a property in another country can be daunting. Our team has been hand-picked for their passion for Portugal, and their understanding of the marketplace – the towns and properties, and the buyer and sellers. We’ve built up an in-depth knowledge of the country, the regions, and the types of home available - and have a team devoted to finding the best properties for our clients. One of the most important ways to do that is by building personal relationships right from the start, listening to what buyers value and need from a new home, and helping them find exactly the right property. Plus, we have access to the widest selection of homes in the region. So whether you’re looking for a small family holiday home, a golf apartment, a beachfront penthouse, a large mountain estate, or an exclusive villa in a prestigious residential area, we can help. And, once you’ve found the right home, we’ll support you all the way through the buying process, by providing

simple, straightforward advice, based on our years of experience of assisting buyers like you, and our links with the local services you will need. While, for you personally, buying a property in Portugal might be a step into the unknown, rest assured that plenty of foreigners have already taken that step, and we’ve helped many of them to do so. There is a well-established procedure and no shortage of sound advice available on all aspects of setting up home in the Algarve. Along with our own staff, we have built up a team of local professionals to assist you in your property purchase in Portugal. Like us, they understand excellent customer service, and the importance of taking away the stress of purchasing, and are dedicated in assisting clients in any way possible.

We're all at your service – and ready to provide the answers you need. After all - we're talking about your ideal home!

Absolute Excellence

PROPE RT Y V I EW I NG TRIP . Let our experts show you around

The best way to find out more about the different towns and regions of Portugal, and see some of the properties they offer, is on a bespoke property trip. We can take care of booking the flight and hotel for you, with affordable rates, starting from only 149 GBP per person. What’s included? • Return flights from your closest airport to Faro. • Three nights’ accommodation in a 4* hotel on a bed and breakfast basis.

• Time with an Investment Specialist viewing properties that match your requirements. • Financial advice from a Qualified Mortgage Adviser where required. • Independent Legal Advice.

Evenings will be free for you to enjoy as you wish – and of course our expert property team will be on hand if you have questions about any aspects of making a purchase. At the end of your trip, we’ll drop you back to the airport for your flight home.

All we need to know is: • What’s your closest airport? • Full names of passengers? • Dates that you can travel?

I D E A L HOMES POR TUGAL

Bricks and mortar aside, the climate is one of the most pleasant in the world, comparable to California, with blue skies all year round. There is seasonal variation, but winters are never too cold, and the summers never too hot. In the spring, from as early as Christmas until the end of May, the countryside is in full bloom beneath exhilarating azure skies - a very different scene to the grey gloom that pervades northern Europe early in the year. It is both a place to relax and do little or, if you prefer it, to get active outdoors, in the clean, fresh air.

Top reasons for buying in Portugal

• One of the lowest costs of living in the EU. • Appealing location and quality of life, making it a popular retirement destination. • Stunning and divese natural beauty, from rivers rivers, cliffs and and clean sandy beaches to mountains and championships golf courses. • Interesting history and cultural heritage.

• Transfers from Faro airport to your accommodation.

Trip itinerary On arrival, one of our agents will meet you at the airport and take you to your hotel. We’ll give you time to relax and settle in, and then the next day we’ll get down to business, taking you on a tour of the area and showing you some of the properties that meet your requirements.

is something for everyone here. As a general guide, a good standard two-bedroom apartment will cost approximately €180,000.

Why buy a property in Portugal? Portugal, in particular the Algarve and Silver Coast, has managed to retain its timeless ‘old world’ charm and traditional values, despite being part of an ambitious, forward-looking nation, with excellent air links and telecommunications facilities. The nation's constitution and well-founded legal system give foreign buyers and property owners the same fundamental rights and protection as those enjoyed by Portuguese citizens. The Portugal property market has been particularly popular with British and Irish buyers, who have traditionally favored the southern shores of the Algarve, where some 50,000 properties are now British- or Irish- owned. One of the beauties of Portugal is the diversity of homes available, with places to suit every taste and budget. Property located in the Central Algarve may now be priced high, with some at multi-million levels, and little to buy for less than €135,000, but lower prices can be found towards the Eastern Algarve. With property prices starting as low as €50,000, but a thriving market in the luxury €1m+ range, there really

Portugal is best known for its spectacular coastline, including scores of glorious beaches. Less known, but equally attractive, is its inner land of vineyards, olive, almond, carob and fig trees, rising to rolling hills and the plains of the province of Alentejo beyond. From a few kilometres inland, the Algarve is covered with evergreen trees and shrubs, meaning the countryside remains remarkably lush even in the height of summer. The environment is much less spoilt and polluted than other European countries, and - with increasing public awareness plus the incorporation of EU Environmental directives into Portuguese law - it looks set to stay that way. Language is generally not a problem and, anyway, you will enjoy picking up at least a smattering of Portuguese. You can get by in English or German, so long as you know the Portuguese all purpose expression that sums up any and all of life’s minor travails: não faz mal or ‘no harm done’.

• Well-trodden property market place, with stability and transparency for foreign purchasers. • English widely spoken. • Over 300 days sunshine. • Stable political climate. • Construction density limits in the Algarve set at 8%, guaranteeing preservation of the natural environment. • Largest area covered by golf courses in Southern Europe. • Strong holiday rental market. • Newly built Autodromo do Algarve – FIA approved race circuit. • Very favourable mortgage rates. • Expansion of Faro Airport. • Increased number of budget flights.

Absolute Excellence

MORTG AG E A N D F I NANCE OPTIONS

There was a time when mortgages for non-residents were near impossible to arrange. Fortunately, times have changed and there are now a variety of mortgages and sources to choose from. Unlike other countries where it is very difficult to get a mortgage loan for a non-resident, due to the banks subprime lending in recent years; the banking system in Portugal is an extremely safe one, and can lend to foreign nationals on a wide scale (subject to status, of course). The ‘Interest Only’ option is popular with overseas purchasers, as it keeps the monthly payments relatively low, with the ability to clear the mortgage with a small penalty of 0.5%. This option also offers the opportunity to maximise your money by borrowing up to 80% of the

valuation of the property. This is extremely beneficial if you buy an off-plan or discounted property, as it can often mean your initial deposit is effectively returned to you. This and other useful information is detailed below.

Interest Only Mortgage Monthly repayments are purely the interest cost on the capital sum outstanding. The interest rate is usually fixed to the European base rate (Euribor) + the

bank spread. Depending on the bank, the interestonly product will be available from one to five years, followed by a move to a repayment mortgage.

Repayment Mortgage Repayment mortgages are available up to the age of 80 years and the monthly repayments cover the

Mortgage options are improving all the time and we will be glad to give you a personal quotation at any time. We

I D E A L HOMES POR TUGAL

Buying a property in Portugal is a straightforward process. The following guide explains the steps you will take, including a breakdown of the buying costs.

Step 1: Appoint a Lawyer With years of experience, the Ideal Homes Portugal directors know that the most secure way of buying a property overseas, whether in Portugal or elsewhere, is through a local solicitor or lawyer, who knows all the conveyance legalities. Our job is to recommend professionals that have proven to be efficient. Before you purchase a property through Ideal Homes Portugal, you can request a free meeting with an independent local solicitor, who will take you through the legalities of buying a property in Portugal. Once you have found a home that suits your criteria, and you feel comfortable to purchase it, you can hold it and fix the purchase price by leaving a reservation deposit (normally €6,000) with them.

Step 2: Property report interest and a portion of the outstanding capital, so that at the end of the term the debt is duly repaid.

Loan-to-Value Mortgage Mortgages in Portugal can often be approved based on the valuation of the property and not the purchase price. By purchasing an off-plan or reduced property (and typically paying a 30% deposit) you can often

PURCHASING PRO CESS EXPL AINED

borrow enough from the bank at completion to pay the developer and replenish your funds (from wherever the deposit originated). This is dependent on the property increasing in value from the time of purchase.

can also provide an agreement in principle to give you added piece of mind.

After you have reserved your property, your lawyer has five–ten days to thoroughly research the history of your property, including its previous ownership, and to make sure the title of the property is free of any outstanding debts.

Step 3: Promissory Contract Once your lawyer has completed the report, this is presented to you along with the promissory contract, which details the terms of the sale, including the completion date. Your lawyer will ensure you fully understand the contents of the contract. You should also read the document carefully and ask as many questions as you need to ensure you are completely comfortable with it.

Step 4: Payment of Deposit Once you are happy with all the paperwork, the balance of the deposit should be transferred to your lawyers’ client account, this is normally being 30%.

Step 5: Payment of the Balance Around six weeks prior to completion you should start to prepare for the balance of the purchase to be sent to the lawyers. If you are intending to take a mortgage you need to apply for one at this point, and the bank will liaise with your lawyers to ensure the money is in place for the title-deed rate. The funds for the relevant taxes and closing costs should also be transferred to the lawyers’ account to allow them to make all the payments on your behalf on the day of signing.

Step 6: Completion Completion takes place at the notary office. Your lawyer can sign deeds on your behalf upon power of attorney. The keys are released to you and the property will be registered in your name immediately.

Fees and Taxes IMT – Property transfer tax. This tax varies depending on the price of the property, ranging from 0% to 8% but there are also tax deductions applicable to each property price bracket. These brackets are set each year and your lawyer will provide you with the most up-to-date rate. Stamp duty - 0.8% of the property price. Legal Duty - 1.25% of the purchase price, plus VAT. There might be some other small costs due to other services that solicitors can help you with, such as applying for Portuguese fiscal numbers, giving power of attorney to the solicitors, or utility bill connections. Notary Fees - 400€ Registry Fees - 700€ As a general rule, we recommend clients allow around 10% for the total purchasing costs, but the reality tends to be less than this.

Absolute Excellence

C U RR E NC Y E XC HA NGE

Buying a new home abroad should be an exciting time. But few realise the currency risk they are exposing themselves to until it’s too late, and end up paying more for a property than they thought they would. Ideal Homes Portugal can help plan the best way to minimise that exposure and reduce the final costs. Let’s say you are a UK resident and buying property overseas in Euros (EUR). The seller will generally require a deposit in Euros straight away, and the final payment on completion. You already know the price of property in Euros and this should not increase. But it can! The actual cost in British Pounds (GBP) will be determined by the timing of your currency purchase.

AFTERSALES CARE & RENTALS

There are three approaches one can take in determining the overall cost of property purchase:

1. Low Risk Buying the EUR needed at the outset or buying ‘Spot’. This fixes the cost from the start. The money can then be deposited in an interest account or paid to the seller. This approach is fine if you have plenty of spare funds.

2. High Risk Buying EUR each time an installment is needed. Most new-builds overseas require purchasers to make staged payments. Since currency markets are highly volatile this approach can end up costing the purchaser much more than anticipated. Not for the fainthearted.

After-Sales Care Congratulations you have found your ideal place in the sun! So what happens next? This is when we assign you an expert from our after-sales team, to support you with anything else you need, from recommending schools, to shipping anything you need bringing over - even your beloved family pets! Whether you need to furnish or insure your new house; connect your utilities, get satellite TV or air-conditioning installed, change locks, polish floors, or simply overcome language barriers, Ideal Homes Portugal’s after-sales department will assist. Our after-sales service also takes care of clients wishing to set up their rental investments, and offers a full property management and key holding service, including:

3. Shrewd approach Fix the exchange rate now, but pay for the EUR later, also known as a ‘Forward Contract’. With this type of contract you are required to pay 10% deposit and the remaining 90% at the contract’s expiry. For example, if you wish to buy 100,000 GBP worth of EUR but do not need to send it over to Europe for 12 months, you can agree the exchange rate now, place 10,000 GBP deposit, and pay the remaining 90,000 GBP balance in 12 months. You will not be affected by currency fluctuations and can actually fix a rate on all your currency requirements up to 24 months forward.

• Meet & Greets • Arranging airport transfers • Organising welcome packs • Key holding service

If generating a return from your investment is important to you; we can advise on the best ways to market your property to maximise that return. We also inventory check

your property each time rental clients leave. We provide an emergency local telephone number for you and your rental clients.

Naturally, if the GBP strengthens during the purchase process the process the property will become cheaper, but if the EUR strengthens then the cost will increase.

I D E A L HOMES POR TUGAL

Absolute Excellence

E AST E R N A LG A RV E

I D E A L HOMES POR TUGAL

EASTERN A LG A RV E

CO L I N A V E R D E

C A BA N A S B E AC H C LU B

1 Bedroom & 3 Bedroom Apartments Prices from 149,000 Euros

2 & 3 bedroom apartmentsPrices from 149,000 Euros

Absolute Excellence

E AST E R N A LG A RV E

EASTERN A LG A RV E

FUZE TA - S E A F R O N T A PA R TM E N T

TAV I R A Q U I N TA

3 bedroom, 3 bathroom apartments Price 330,000 Euros

5 bedroom Villa Price â&#x201A;Ź1.4 million

I D E A L HOMES POR TUGAL

Absolute Excellence

C E N T R A L A LG A RV E

I D E A L HOMES POR TUGAL

CENTR AL A LG A RV E

VILLA BRANCA

S U M M E R CO U R T V I E W

2 Bedroom Townhouses Price from 135,000 Euros

Four bedroom Villas Prices from 255,000 Euros

Absolute Excellence

C E N T R A L A LG A RV E

CENTR AL A LG A RV E

C E R R O DA AG U I A 2 bedroom, 2 bathroom apartments Price from 139,000 Euros

I D E A L HOMES POR TUGAL

PERA 2 Bedroom apartments Prices from 125,000 Euros

3 Bedroom apartments Prices from 250,000 Euros

Absolute Excellence

W E ST E R N A LG A RV E

I D E A L HOMES POR TUGAL

WESTERN A LG A RV E

LUXURY V I L L A , P R A I A DA LU Z

F R O N T L I N E B E AC H V I L L A

5 bedrooms Price 950,000 Euros

4 bedrooms Price 850,000 Euros

Absolute Excellence

P ORT U G A L

THE ALGARVE

DENMARK

LITHUANIA

IRELAND BELARUS UNITED KINGDOM

POLAND

NETHERLANDS GERMANY

BELGIUM

UKRAINE

LUX

CZECH REPUBLIC SLOVAKIA

FRANCE

LICHTENSTEIN

AUSTRIA

MOLDOVA

HUNGARY

SWITZERLAND

Atlantic Ocean

ROMANIA SLOVENIA CROATIA BOSNIA SERBIA SAN MARINO AND HERZEGOVINA

MONACO

Porto

ITALY MONTENEGROKOSOVO

PORTUGAL

MACEDONIA SPAIN

Lisboa (Lisbon)

BULGARIA

ALBANIA TURKEY GREECE

Faro

Mediterranean Sea

MAROCCO

ALGERIA

TUNISIA

Portugal may be small, but it certainly packs a punch. Crammed onto this sliver of sun-drenched land at the westernmost point of Europe are intricate late-Gothic monasteries and cathedrals, wild windswept beaches, Roman ruins, fertile vineyards and edgy urban nightlife. Shaped by a grand colonial history and renowned for its peaceful global relationships, Portugal is home to a proud and warm people, whose passion for their culture is clear. For a glimpse of the country’s volcanic past; marvel at the towering cliffs of the Algarve. As you bask in the summer heat, indulge in fresh seafood and sweet local wines in the nation’s capital, Lisbon. With world-class surfing and golf courses, numerous UNESCO heritage sites, vast and varied wildlife as well as vibrant metropolitan skylines, Portugal is overflowing with inspiration. The rest is up to you.

I D E A L HOMES POR TUGAL

MALTA

The Algarve is Portugal’s premier holiday destination, with pretty beaches, fun-filled resorts and picturesque whitewashed towns that flood with foreigners when summer arrives. The party atmosphere isn’t for everyone, but the setting is undeniably beautiful: breathtaking cliffs, wide golden sands, natural bays, scalloped beaches and long sandy islands with waves lapping at the shore. Outside the touristy enclaves, there are quiet castle towns, flower-covered hillsides and enchanting stretches of shoreline, still untouched by development.

is a quaint mountain town with fine views over the steep wooded countryside. Tavira, set along a peaceful river and nature reserve, remains elegant and laid-back, with a history dating back to the Roman. The capital of the region, Faro, has a more Portuguese feel than some, and a fascinating medieval quarter. Out on the rugged west coast, small charming towns like Sagres and Carrapateira attract a surf-loving crowd, while Albufeira sees a wider cosmopolitan mix of travelers.

The towns also offer a wide range of personalities. Lagos, with its cobbled streets, young crowd and abundant nightlife, is the carnival queen of the Algarve. Monchique

Absolute Excellence

W E ST E R N A LG A RV E

CENTR AL ALGARVE

PORTIMÃO . LAGOS . FERRAGUDO . CARVOEIRO . ALVOR . LUZ

Many consider Western Algarve to be the most stunning region in Portugal. The coast line is set with stunning cliffs that fall dramatically into the Atlantic Ocean. There are plenty of secluded beaches to be explored and wonderful cliff-top walks. The area offers perfect conditions for water sports such as sailing, surfing and kite surfing, and it is a popular location for diving and dolphin safaris. Over the past few years there has been a large amount of investment in the area, including new marinas and the construction of the Autodrome do Algarve, an approved FIA (Federation Internationale de l'Automobile) racing circuit. Sport plays a key role in this area, and annual events include: International Beach Soccer, P1 World Power Boat Championship, Big Game International Fishing, Kite Surf World Tour, and the Breitling Mediterranean Cup Yacht Race.

I D E A L HOMES POR TUGAL

There’s also all you need for a spot of retail therapy, with the new Aqua shopping centre, and its familiar names like H & M and Primark, a large supermarket, and several food courts. Typically, this area is popular with purchasers looking to relocate or retire to Portugal, as it’s not as busy as the Central Algarve. Property prices can be a bit cheaper, and the rental market is not quite as strong as elsewhere, but homes here can still provide a very good rental income. The resale market holds its value well and a decent twobed apartment typically starts from around €210,000.

ARMAÇÃO DE PERA . ALBUFEIRA . OLHOS D’AGUA . VILAMOURA . VALE DO LOBO . QUINTA DO LAGO

More developed than the East and West, the central region has become a Mecca for thousands of tourists seeking its excellent beaches and unbeatable facilities for a family holiday. Numerous water parks and golf courses are within a few minutes’ drive.

There are numerous hotels and holiday complexes in the area, but, increasingly, people are looking for self catering holidays, which in return keeps the rental market strong, making this an ideal area to purchase a property for investment.

The Central Algarve stretches from Faro, location of the international airport, which is,served by most budget airlines from around Europe, to Portimao, home to the new Formula One racetrack. Just 30 minutes drive from the airport you will find a place called Guia, a town that has managed to maintain most of its Portuguese charm, with many restaurants serving the famous chicken piri piri dish, local street markets and craft shops.

For those who like to venture out in the evenings, the famous Albufeira strip and old town, with its bars and restaurants, are easily accessible. Alternatively, you the areas of Olhos D’Agua and Falesia suit those looking for a quieter experience, though both have an array of bars and restaurants to choose from, along with one of the most beautiful beaches on the whole Algarve.

Absolute Excellence

E AST E R N A LG A RV E

THE SILVER C OAST

OLHÃO . FARO . TAVIRA . FUZETA . MONTE GORDO

The Eastern Algarve is a must for those seeking something with a little more of the traditional Portugal - the least developed area of the Algarve, it offers beautiful beaches and quaint Portuguese fishing villages such as Cabanas. The East is very popular with nature lovers as it is so rich in wildlife, especially birds , which includes flamingos on the migrating route. In fact, much of the area is protected under a national environmental program. The most popular town is Tavira, with its origins in the late Bronze Age. In the 8th Century BC it became one of the first Phoenician settlements in the Iberian West. The Phoenicians created a colonial urban centre here with massive walls, at least two temples, two harbors’ and a regular urban structure. Phoenician Tavira existed until the end of the 6th century BC, when it was destroyed by

I D E A L HOMES POR TUGAL

conflict. The Moorish occupation of Tavira began between the 8th and 13th centuries left its mark on the agriculture, architecture and culture of the area. That influence can still be seen in Tavira today with its whitewashed buildings, Moorish style doors and rooftops. A castle, two mosques and palaces were built by the Moors. The impressive seven arched ‘Roman Bridge’ is now considered to be Roman after a recent archaeological survey, but originates from a 12th Century Moorish bridge.

THE SILVER COAST

The coastline from Lisbon up to Porto makes up the Costa de Prata, the Silver Coast. If you like long sandy beaches and huge crashing Atlantic breakers, then here will fit the bill, whether you are a windsurfers, surfers or sunworshiper.

culture and way-of-life, and it has some of the best European beaches. Coimbra is the main city of this area, being within easy driving distance of the coast, as are some of Portugal's most impressive historical sites, like the cathedrals around Batalha, Alcobaca and Fatima.

The Silver Coast has a plethora of different types of resorts, from quiet traditional fishing villages to busy family funoriented destinations. Many of the pretty villages along the Silver Coast have retained a traditional Portuguese

Absolute Excellence

A G OL F E R S PA R A DI SE

The golfing market on the Algarve - with no less than 32 golf courses to choose from - has been one of the main reasons behind the strong rental market in Southern Portugal. A handful of courses are of a PGA-standard, and offer a challenge for all levels of golfer. It is of little surprise that many of the world’s top golfers own property on the Algarve, including Paradigm Harrington, Retief Goose, Lee Westwood, Paul McGinley and David Howell. With the all-year climate that Southern Europe offers, many golfers from Northern Europe take golfing holidays here throughout the year. The main golf season is from late autumn to late spring. Winters are mild and golfers from Northern European countries enjoy warm, sunny days and keep their swings smooth at a time when home courses are unplayable.

I D E A L HOMES POR TUGAL

THINGS TO D O

It was the legendary Henry Cotton who put the Algarve on the golf globe. In the mid-sixties, at Penina, he designed the first proper grass course. It was the first of three he designed in the Algarve, a place he loved and made his home for almost 30 years.

Whether you are looking to purchase a holiday home or a permanent home in the Algarve, you can rest assured there will be plenty to keep the whole family entertained. After all, the Algarve isn’t just about great weather, fantastic beaches and wonderful fresh seafood.

The Eastern Algarve is the place for those in touch with nature. It is home to the RIA Formosa National Park, with its kestrels, ducks and kingfishers, and one of the main attractions is the migrating flamingos when they pass through. It also offers great fishing.

During the 1970s and 1980s, and on into the first half of the 1990s, golf courses mushroomed all along Portugal’s Southern coast. Although none of the existing courses are more than 15km from the coast, the terrain varies from the steep hillsides of Parque da Floresta to the near sea-level flatlands of Vilamoura III and Salgados, which, in common with Palmares, includes link holes.

We’ve already mentioned the golf courses, but if you prefer the sport of shopping, you can always hit the boutiques, while wine lovers - and the Cliff Richard fans - shouldn’t miss the unique experience of visiting his winery. It is situated in Guia, a few kilometers northwest of Albufeira, in the middle of the Algarve, and was built to produce wine, principally the Vida Nova range.

The Algarve’s stunning varied coastline, has long been a favored destination for walkers and artists too - its wonderful colors and flavors have inspired and attracted artists from all over the world.

The golfing market on the Algarve is always growing, with new courses planned, the most recent addition being the new Nick Faldo course in Vilamoura.

And for water enthusiasts the Algarve is perfect. The Nerada wind regularly blows up ideal sailing conditions, while the awesome 5km beach and waist-deep lagoon in Alvord is a favourite with windsurfers and kite surfers.

One of the most exciting newcomers to the Algarve in recent years is the new Autódromo International Algarve, a brand new state-of-the-art FIA-approved racing track. The track currently hosts top events such as the Superbike World Championship, Le Mans Series and the A1GP. Portugal is now very hopeful about hosting Formula One.

Absolute Excellence