The reasons for buying property in Portugal are many and varied but there are a number of factors that must be considered when it comes to matching property types to property buyers. For the purposes of this article we will examine three buyer groups that are traditionally associated with buying property in Portugal: the property investor, the relocation buyer and the retirement buyer.
Property investors are typically interested in properties that can provide a high rental yield. The best buy to let properties are often situated in or near to Portugal's major resorts such as Vilamoura or Vale do Lobo and because of this the amount of capital available to the property investor, or their ability to service a loan, will be an influential factor in the buying process. This is because there are large differences in the prices of property, based on their location.
Properties in Quinta do lago and Vale do Lobo, for example, can command prices of up to £20.000.000 whilst those in Vilamoura are generally of lower value. A non-resident property investor should also consider whether there is a reputable property management company on hand to service the property in their absence. A good property management company can advise on legalities and requirements pertinent to the commercial rental of property in Portugal as well as dealing with the day to day issues that renting a property entails.
Ideally a property bought with rental in mind will be close to local tourism centres, have good transport links and be situated near to the beach or golf course. Security is also a factor to bear in mind as is access when renting to elderly or disabled tourists. If selected carefully, the buy to let investor can be assured of a good rental income from their property, especially in regions such as the Algarve. Southern Portugal now works as a "non-seasonal" tourist destination, with rental income achievable throughout the year.
Families looking to buy property with a view to relocating to Portugal will need to consider a number of additional factors. A family with children of school or pre-school age will need to consider the proximity of local international schools. These schools often teach to the syllabuses of Cambridge or Oxford and use English as their primary language. An international school facilitates the easy entry of Expat students into the Portuguese education system and avoids the culture shock factor associated with attending a State school where lessons are exclusively taught in Portuguese. International school fees vary in
