Hi All

This is going to sound like a blatant plug Piglet (for which I apologise) but the fact of the matter is that anyone buying property in Portugal today would be well advised to carry out what is called a Pre-Purchase Building Survey . This can save you no end of headaches after you have parted with your money.
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Chartered Surveyor Algarve
www.densham-moreira.pt 

Finding a good solicitor is perhaps the most important and difficult part of the process; you should absolutely NOT use one recommended by the seller or the estate agent.
Remember; the agent isn't working for you, but for the seller. Some, perhaps most, are good folks with valuable reputations to protect, and some [even big ones] aren't.


It has [all too often] happened that people's solicitors were conspiring with the sellers and / or agents to sell properties without clear title, or with liens, illegal houses or other scams.
It's essential to have a competent lawyer who is looking after your interests.

My tip; join AFPOP, and ask them to recommend a solicitor in your buying area. They work for you, and the membership fee is peanuts compared to even your travel costs to come see your prospective new place.  

- PureFX

Shop around to get the best exchange rates!

Not necessary for the many of us who come from within the eurozone

I thought that members were not allowed to plug their own businesses  

Restoring and Renovating a Property in Portugal

The current economic climate may have many of you thinking your dream of owning a property in Portugal is slipping further from your grasp. But there is a way, even in these difficult times to achieve your Portuguese property dream without breaking your bank balance.

Renovating, restoring and modernising a run down property is a route more and more people are following, which can be financially beneficial.

Your ideal property may feature a stunning kitchen, modern bathrooms and a swimming pool, but purchasing a house completely ready to move into and enjoy, means you will have to pay full market value to a private individual or builder.

However by buying a property requiring modernisation and restoration work, which has potential, can save you money. Allowing you to add value with each stage of works. In most cases once finished renovation projects will have cost less than purchasing a property already completed.

The financial advantages of renovating and restoring are immediate as these types of properties often cost a great deal less to buy with reduced purchase price, costs and taxes. By spreading the cost of the repair work over a longer period of time can also be less taxing on your bank account. And by carrying out some of the work yourself, savings on labour costs can be made.

Renovating and restoring a property is not for the faint hearted though as there are many pitfalls to be avoided to create your dream property. Especially so in a foreign country where there are added complications of language barriers and different rules and regulations. But it is possible and with the minimum amount of stress.

By choosing to renovate a property you give yourself plenty of choice. Portugal is a country blessed with a wide range of properties many in varying states of disrepair, to suit all tastes from rustic cottages through to baronial mansions. Look at any estate agency website and you may be surprised at the amount available for sale from as little as 20,000€.

However the key to a successful renovation and restoration project is selecting the right property. Simply purchasing the cheapest property available is not always the most financially sensible thing to do.


Generally restoration property falls into two categories, those requiring full planning permission and those that don’t need permission but can be restored immediately as a DIY project.

Choosing a property in a slightly better condition with utilities already connected can save you thousands in the longer term and mean renovation work can begin as soon as you have decided on the finished design.

Avoiding properties requiring planning permission also means you can save money on the renovation work, carrying out some of the less skilled jobs yourselves. However even if you choose to bring in the professionals it doesn’t have to cost the earth.

Deciding to employ a builder in Portugal doesn’t have to be financially painful. There is a wealth of skilled tradesmen available and despite the fall in the exchange rate, they charge a fraction of the cost of their UK counterparts. Reputable builders can charge as little as 10€ an hour with labourers earning around 8€ an hour.


Generally the quality of workmanship in Portugal is very high, but it is important if you do decide to employ outside help, to get at least three quotes from reputable builders as well as references from previous clients. Being able to inspect jobs they have carried out will also give you peace of mind on the quality of your finish.


Getting your lawyer to draw up a contract with the builder you decide to use is not only a good idea, but will put paid to any demands for extra money and allow a clear method of stage payments for the each section of the work as it is carried out.


Checking out local builders merchants and DIY supermarkets is a good way of ensuring you are not being over charged for goods by builders and it will help you decide on the finished specifications of your property.


Remembering not to get carried away on the renovation work is also imperative. Taking into account the possible resale value of the property, thinking carefully about what you want to achieve during your design period will help you budget accordingly. Common mistakes made during some property renovations are adding expensive features, which don’t necessary add value to the property.


If you are not going to be present in Portugal for the duration of the renovation work, but hundreds of miles away in the United Kingdom it is worth investing a little of your budget employing a project manager.


Although it may not be a cost you initially think about, it is well worth spending a little extra on a project manager who can oversee the job on a day-to-day or week-to-week basis, reporting back to you frequently to ensure works are carried out on time and to your specification. In the long run this can save you undue heartache and sleepless nights.


So if you want a home in Portugal and are willing to tackle a renovation project, now is the time to do it. Property prices in Portugal may be stable, but owners are keenly aware of the world wide economic climate and room for negotiation even on cheaper properties is more likely and you could bag your self a bargain, which you and your family can enjoy designing and renovating.
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www.gekkoportugal.com A guide to living, working and buying property in Portugal
www.chavetejo.com Tomar based estate agent (INCI Reg. AMI 7856) 

My top ten tips for Renovating in Portugal

1. A Cheap Property Isn't Always a Bargain
Don’t be seduced into thinking a property is a bargain, just because it is cheap. Usually there is a good reason for it’s low value, one, which could cost you in the longer term.

2. Location, Location, Location
The old adage about location is true. Picking the right location is as important as the property. Picking the wrong one can be a nightmare. Think carefully about your requirements and if an abandoned property in the middle of nowhere seems remote on viewing, it will be even more so when living there.

3. The Best Set Plans
Unless you want to get embroiled in a lengthy and costly planning application, avoid properties not connected to mains electricity. Despite some estate agents claims connection is just a telephone call away, this is not the case most of the time.

4. Budget or Bust
Be realistic with your purchase budget and the cost of renovation. If your budget is tight over extending on a property requiring a lot of renovation work mean compromising your entire dream.

5. Research Well
Research well and speak with others who have already purchased in Portugal. There is a lot of information online devoted to Portugal with a variety of people regularly posting information about buying and renovating. Seek out their help and guidance, most are only too happy to help.

6. Recycle
Although you may be renovating a property and will probably want to have a fresh, new feel to the property, there will be many materials you will be able to re-use. This will not only save you money, but will add character and is advantageous to the environment.

7. Advice and Expertise
If you intend to get a builder to carry out the work on the property once you have purchased, get at least three quotes from registered builders and if possible check out material prices at local builders' merchants to ensure you know the cost personally.

8. Professional Help
Even though you may be familiar with many of the trades - electrics, plumbing, plastering - skimping on the finish of a property can cost you in the long run. Badly fitted electrics and plumbing can be more expensive to repair when they go wrong. Hiring in the experts doesn't have to be costly in Portugal with these kinds of tradesmen charging hourly rates from 8 Euros per hour.

9. Knowledge
By buying a property in a foreign country you have already crossed the border into the unknown, and although there may be many aspects of renovating a property in Portugal which will be unfamiliar to you don't enter into something which in your country of origin you would not. Ignorance after all is no defence of the law in Britain and therefore in no other EU country. Just because an agent, who is trying to sell you a property, tells you black is white, it is no reason to believe it.

10. Instincts and Trust
Intuition. Often dismissed by many buyers as superstition, first impressions or gut instincts should not be ignored. If you have reservations about a property but don't know why then you are not truly connected with the property. Trust your own judgement and remember the property you are buying is NOT for your agent to live, but you. Do not be pushed into a property deal and if the agents says, 'they would like to buy it'. If they do say this, then let them buy it and find a property which is right for you.
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www.gekkoportugal.com A guide to living, working and buying property in Portugal
www.chavetejo.com Tomar based estate agent (INCI Reg. AMI 7856) 

Very good information Shelby!

Please think about the phrase below, act in accordance!

"If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much." (Jim Rohn 1930-2009)..

Just to complement all the information posted, good information, indeed some people need help and others ( we ) have the duty to post and act such way that they can find this sort of information and protect themselves.

All real estate agents MUST pay for an insurance policy that cover risks with a sale process.

If you bought a property and this is within the guarantee period and the builder does nothing you can contact the real estate agent and ask to activate the insurance policy.

Firstly they will tell you all sort of lies and try to get time in their behalf, the 2nd time you contact them again must be done through your lawyer ( never a lawyer introduced by any real estate agent, these are too smart for your wishes and I am not sure if you win anything ).

I am sick and tired of listening for so many cases of real estate agents, lawyers, architects and engineers, the guy of the shop in the corner, the policeman, A and B did and not did, there is just one common point to all of those, an undisciplined buyer.

Remember, they pay for an insurance policy to protect sellers or buyers, but the best is to follow all those tips that Shelby wrote and do everything in writing ( including the lawyer contract ).

Last comment, when you hire a lawyer make sure you do the writing contract and you have a clear quote of his fees ( usually they say "we talk about it later" or "next meeting we talk about it" and so on, when he / she finally tells you the figure you get a surprise ).

Agents, Lawyers, Sellers have a plan, if you are a buyer do you have a plan?

"A mind, like a home is furnished by it´s owner, so, if one´s life is cold and bare he can blame none but himself" ( Louis LÁmour - 1809/1988 )  

omostra06 raises some very good points regarding renovation. It can be very rewarding in all sorts of ways. However, anyone looking to renovate or extend must appreciate that there is a planning system to deal with.

There are restrictions as to what can be done and they do vary from region to region. For example, in the Algarve, there are limits as to max m2 of construction, restrictions on adding a second storey to single storey properties and restrictions regarding moving the footprint of the property on the plot.

We were able to help a client recently who was looking to buy a old town house in a coastal town and wanted to add a third floor to create additional bedrooms. Looking at the street scene around the property, it could be assumed that there was no problem in doing this - but there was !

Yes, there are cheaper properties available for renovation, but anyone who is contemplating such an adventure has to be, in many ways, far better informed than those purchasing a completed property.
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Property Lynx Lda - Chartered Surveyors
www.surveyorsalgarve.com
www.propertylynx.eu