Portugal Golden Visa €350K Renovation Option: How To Make the Most With Your Money
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The rising popularity of Urban Rehabilitation Real Estate Investment for Portugal Golden Visa is bringing a lot of attention into the Portuguese real estate market. This method is widely referred to as the Portugal Golden Visa €350,000 real estate option. This attention is divided into two categories: Used Property and Off Plan Developments.
Some investors are more inclined to find a used property that qualifies for Golden Visa and renovate it. Others choose not to be bothered with the renovation themselves, and delegate it by selecting an off-plan property from a new development. Fair enough. But where do you steer your investment when both options look attractive? Our best practice is always to lay out the pros and cons of both options. The comparison then shows us how to avoid losing money and make a profitable investment instead.
Choosing the Property You Like: Used Property Route
Hands down, this is a great route as you’ll have more options to choose from. With the used property route, the square meter prices are closer to fair market value and you’re going to find more room to negotiate. This route will involve a lot more due-diligence and creativity from an investor.
However, there are some hidden obstacles that you need to uncover first.
Check the Culture of the Building
This is a huge point of concern when you’re buying a used property. Have you checked the neighbors’ profile? What does the rental potential of the building look like? Before you make a decision, make sure you have an idea and a rough figure.
Do Your Technical Due Diligence
When you’re buying a used property, it’s equally important to check the condition of the building. Has the building been well maintained so far? How old is it? What is the condition of mechanical and electrical infrastructure like? Has the condominium done any repairs or renovations in the last 5-8 years? These are also very important as some hidden costs might emerge.
Know that You’re Solely Responsible
Buying a used property comes with many responsibilities. If you’re investing in one, know that you’re going to deal with the design of the unit and the quality of the materials to be used. This means extra effort and time.
Finding a Contractor
Before you commit any funds to a used property, note that you’re going to need a contractor for the renovation of the unit. Plus, you’ll need to submit the renovation works to the Municipality initially and at the end of the project as terms for the Golden Visa application, which can only be done by the contractor. As licensing takes time, you’d better find a contractor you can rely on.
Taking the Easier Route: Off-Plan Developments
Thanks to its extensive description, the off-plan development route is far easier than the used property route. With off-plan developments, you can easily find package deals that sometimes include rental guarantees with property management services. You can also do a quick background check on the developer with help from an independent advisor.
Another bonus is that as the developer is in the driver’s seat, you don’t need to worry about design or material choices. Lastly, off-plan developments are protected by the Construction Quality Law which ensures extra safety for the apartment unit and the overall condition of the building. However, it’s not all sunshine and roses. Let’s quickly analyze the challenges of this option.
Your Options Are Limited
It’s true that there are many developers who spare no effort on this type of property. So when you decide to make an investment in an off-plan development, your options will be limited to certain neighborhoods and projects.
Be Prepared To Pay More
When you’ve decided to invest in an off-plan development, be prepared to pay more. Off-plan developments come with higher prices than of the average market. But note that this is not a huge deal breaker as the developer is dealing with all the issues on behalf of you. This is especially helpful if you’re not living in Portugal.
Do a Property Evaluation
Doing a property evaluation is important when investing in an off-plan development, too. It’s going to be wise to check if you’re getting a good deal in the long term. Does the higher price point still reflect an adequate range for price per square meter in the neighborhood?
Get Help From an Independent Advisor
If you’re taking the off-plan development route, it always helps to speak to an independent advisor. An independent advisor will give you an unbiased and objective approach on the property value as well as the neighborhood.
What Else You Need To Know
Both used property and off-plan development routes have their own uniqueness. Our company always recommends clients to weigh both options before they commit to a specific solution. Speaking to an independent real estate advisor will provide you with an objective approach without directing you to certain projects and developments.
Alternatives
So you may ask; ‘What are my alternatives?’ Well, if the property is not your cup of tea, then the Portugal Golden Visa investment fund option may be a suitable route for you. If you invest a total of €500,000 in one or more qualifying funds in Portugal, you may apply for your Golden Visa. It’s crucial to work with an independent advisor in order to vet the funds and to make a calculated decision in this investment route, as well.
About Get Golden Visa
Get Golden Visa is a full-service investment immigration agency. We provide end-to-end solutions on residence and citizenship by investment programs in numerous countries worldwide. Through our local offices and certified real estate professionals in Portugal, we simplify the property search of our clients.
With our expertise in independent investment advisory, we provide an efficient service to the hundreds of families we work with each year.
Author Information:
Mary Kuffel, Investment Advisor at Get Golden Visa
Mary Kuffel is an Investment Advisor at Get Golden Visa, a leading provider of investor visa solutions around the world. Get Golden Visa provides tailored, transparent advice to thousands of families and business people looking to either improve their freedom of movement or relocate on a permanent basis.
Website: www.getgoldenvisa.com
Email: mary@getgoldenvisa.com