Money Makes the World Go Round

It is said that ‘money makes the world go round’, and unfortunately, this really does seem to be true.

One of the advantages of living here in Portugal is that the cost of living is significantly lower than in the UK. You will notice this to a lesser or greater degree depending on your lifestyle, but it is fairly safe to say that you will definitely pay less here for things such as food and drink especially in bars and restaurants. Something I for one, really appreciate!

For me one of the greatest advantages of the internet is to be able to manage my UK bank account at home in Portugal at any time of day or night – how did we manage before this miracle of technology?

My life is also made a lot more straightforward by the fantastic cashpoint, or ‘Multibanco’ machines here. The Portuguese seem to have a knack for technology and they have really gone to town with automated banking. As well as the usual withdrawals and statements you can do the following:

• Pay utility bills (electricity, gas and water)
• Pay services and purchases
• Buy tickets for concerts and shows
• Buy cinema tickets
• Buy a fishing license
• Deposit cash which is instantly counted and credited to your account
• Make inter-bank transfers
• Make transfers from one account to another within the same bank
• Pay Social Security contributions
• Pay Income Tax
• Pay Value Added Tax
• Recharge mobile phone credit
• Make miscellaneous payments to the state
The Portuguese banks have operated in a very sensible manner during the economic downturn and it is partly due to this that the boom and bust situation created by reckless lending in other countries around the world hasn’t happened in Portugal, resulting in house prices remaining stable.

However, with mortgage rates at an all time low, it is currently a very good time to borrow money allowing you to buy your dream home on the Silver Coast without breaking the bank!

Here at Prestige Portugal Property we have formed a strong relationship with Portugal’s largest private bank, Millennium BCP, who also have branches in the UK (and a website in English!). Through Millennium we have arranged mortgages for a great many of our clients simply and easily, if you are interested in finding out more then please contact us and we will be able to help you – with, of course, no obligation on your part.

We have beautiful properties ready and waiting for you in places such as Sao Martinho do Porto, Salir do Porto, Nazare and Obidos.

So perhaps now your dream of buying a villa or apartment on the Silver Coast could soon become an affordable reality. . .

By Stephanie Johnson

Money for free in Portugal

Portugal is the only country in Europe where you do not pay to use an ATM. You can draw money, transfer money or deposit money at an ATM in Portugal and you will not pay a cent, no bank charges.

It is a wonderful feeling when you are drawing 10 Euros at an ATM in Nazare, or Obidos or São Martinho do Porto and only 10 Euros gets taken out of your account.

In addition Portuguese banks are still giving out mortgages, our new apartments and villas come pre-approved and all our clients have taken out mortgages this year using a Portuguese bank. Of course it helps when the interest rate is the lowest it has ever been.

By Dylan Herholdt

How to choose the right Estate Agent in Portugal (Part 2)

If you are an overseas buyer then it will be in your best interest to choose an Agent who is based in Portugal and who has plenty of experience in dealing with foreign buyers. Obviously the issues and concerns that you will have prior and throughout the purchase will be completely different than that of a local Portuguese buyer. Don’t forget that you are in a foreign country and remember there is a language barrier especially pertaining to purchase contracts etc. It is very important that the Agent you choose to work with, is based in the area you want to purchase, in the case of the Silver Coast, you want an agent who is central to all the main areas like Obidos, São Martinho do Porto, Nazare, Caldas da Rainha and Foz do Arelho, an agent who can provide you with all the back up and support that you will require to make the purchase of your villa or apartment a smooth and enjoyable one.

There is a misconception that many overseas buyers have to not take recommendations from their Agents with regards to lawyers, mortgage brokers, management companies etc. If you are working with an established and reputable company then you should listen to their advice. Any recommendations for lawyers or mortgage brokers made by your Agent must be independent as stated under Portuguese law. If you have any doubts about the honesty of the Estate Agent then you should not be working with them in the first place.

By Colm Wilkinson

Why Portugal?

Portugal is a cosmopolitan country, the home of Henry the Navigator and Vasco da Gama, with a rich sea fairing heritage and has for centuries witnessed all nationalities embarking and disembarking from great voyages of discovery. Portuguese, have through the centuries become accustomed to traditional visitors from both the “Old World” and exotic visitors from the “New World”. The Portuguese are a friendly and peaceful nation that welcomes all nations, languages and creeds with open arms. Portuguese tend to be multilingual a skill learned in finding the routes of discovery to the Far East and the Americas. Portugal receives visitors with “Beijinhos e Abraços” (kisses and hugs), “Bem Vindo a Portugal” (welcome to Portugal).


ESTABLISHED DEMOCRACY
Portugal has been a stable democracy since 1974. Portugal has no internal political strife and religion is practised freely with no radical elements operating on the fringe of society. Portugal also shares a positive and peaceful relationship with its neighbours and former colonies, i.e. Brazil, Angola etc.

EXTREMELY SAFE INVESTMENT LOCATION
As a location, Portugal meets all the criteria for a low risk investment. It has been a member of the European Union since 1986, part of the single currency since its inception in 2002. Portugal has a stable government and enjoys steady economic growth. Portuguese by their nature are conservative therefore Portugal has not experienced the peaks and troughs of fellow European Union member states. Both economic and population growth has been steady and the proof of this continued success is that Portugal is considered one of the safest countries in Europe to live in.

MASSIVE EU INVESTMENT IN INFRASTRUCTURE
The European Union has between 2000 and 2006, invested €25 billion in Portugal to massively improve the country’s infrastructure. Roads and transport links have been significantly upgraded and soon, construction will begin on a high-speed TGV rail line, which will cut the 10-hour journey from Lisbon to Madrid to less than 3. The European Union pledged a further €22.5 billion over the next six years to improving the infrastructure. Motorways cross the country connecting all the major Portuguese centres including neighbouring Spanish cities; Madrid, Seville etc. The government is also promoting building of a new Lisbon International airport and a new bridge across the river Tejo, to be funded by the EU. Medical, Education, Electricity, Telephone and clean water are available to all its citizens providing a good standard of living for all. Portugal has entered the electronic age as a leader, citizens are able to communicate via the Internet and attend to: banking, bill payments, administrative issues from anywhere in the world. The equation is simple – when infrastructure improves, property prices go up.

HIGH LIVING STANDARDS BUT LOW COST OF LIVING
As part of the EU, Portugal enjoys high living standards including excellent healthcare and education systems, yet it remains one of the least expensive countries in Western Europe. Daily items such as food and wine are of excellent quality and the cost of a meal for a family of four is only around €35 per head.

PLANNING LAWS TO STOP OVERDEVELOPMENT
In 1993 planning laws were introduced, following a rash of over-development in Spain. Portugal has one of the strictest planning laws in Europe, it has been instrumental in preventing Portuguese ‘hotspots’ on the Silver Coast, Blue Coast, Lisbon Coast and Algarve from suffering the same fate as the overdeveloped Spanish Costa’s, allowing the country to maintain its traditional feel and atmosphere. It has restricted the number of new-builds, which has and will continue to push property prices higher.

PRIME TOURISM DESTINATION
Portugal remains a massive destination for tourists. The World Travel and Tourism Council estimates that tourism contributes over €30 billion to the Portuguese economy and is forecasted to grow to €53.5 billion by 2016. Tourism to the country remains rock-solid, which means strong demand for quality accommodation and in turn, higher occupancy rates for investors. Portuguese have learned from the success of resort towns such as Vilamoura, Val da Lobo, Quinta da Lago, Albufeira and Tavira in the Algarve and the revitalization on cosmopolitan centres such as Lisbon, Estoril and Cascais on the Lisbon Coast and applied these valuable lesson in hot spots such as Nazaré, São Martinho do Porto and Obidos on the Silver Coast.

YEAR ROUND RENTAL RETURNS
With its mild winter climate, cheap daily flights from all over Europe and an average of 300 days of sunshine per year, Portugal is a hugely popular year-round destination. Its attractions create a strong tourist demand, which ensures investors can make solid rental returns from holidaymakers throughout the year.

AVAILABILITY OF MORTGAGES
Portugal benefits from a mature banking system unlike some of the emerging Eastern European markets, Portuguese mortgages are readily available to overseas investors. All mortgages are based on status, with proof of income and outgoings required and the mortgage secured on the property in Portugal. The global banking crisis has not affected the Portuguese banks as much as their European counterparts; Portuguese banks tend to be more conservative in boom times and therefore only have to adjust their policies marginally in the lean times. Prestige Portugal benefits from an exclusive protocol with Portugal’s largest private bank, which includes, 72-hour mortgage pre-approval, reduced spreads, 80% LTV and more on villas, townhouses, land or apartments. This means a smaller initial outlay from investors and better overall returns for your investment

Why Portugal? . . . . . . . . . Why not?

by Davide Patricio