Thanks for the info, Nick! Congrats to your client on their new property. Looks great👍 Wish Nick Jr 😉 had given us a sense of the length of time it takes to complete each step after you've found your dream property. For example, should you anticipate that it will take 1, 2, 3 week(s) for the surveyor, another 2, 3, 4 weeks for the lawyer etc. etc. Lots of videos out there talk about the Portugese administrative/legal process being convoluted and extremely slow. You never know if that person's experience was a one off, or a fairly accurate depiction.
hi @janyshendrickson3833 - Nick Jr here! That's a hard one to answer in short as every property and moment in time is different. One of the things that we try to do is for see all the steps ahead of time to ensure a smooth process. Typically though: 1. Offer accepted on a house to survey report in hand 1-2 weeks depending on urgency. At this stage it has to be done in time for the CPCV and if necessary to use it to negotiate the price down should bad items be identified. 2. Offer accepted to CPCV (Promissory Contract) 3 weeks from drafting to signature on the assumption you have a lawyer appointed in advance and a NIF number in place. Things that effect this are transfer of currency, mortgage approval (if required), a suite of appropriate documents relating to the property being available and in order. Also the base negotiations for the deal and deed. This will all vary on property type and situation. 3. Offer to deed all depends on type of a multitude of situations but in can be as quick as going straight to deed, bypassing the CPCV, through to a delayed completion. If a mortgage is needed the process is normally at the mercy of the banks so we look to agree 90 days in the CPCV to allow for problems. If a cash purchase can be a matter of days or weeks after the CPCV is signed and will be in line with Notaries availability. In my experience it is all about the engine driving it and thats all part of the service we offer is pulling the strings behind the scenes to ensure everything moves forward at the right pace. It is critical to have the right lawyer in place as an arrogant slow one will cause more problems then they are worth. Hope this helps.
We recently sold our small apartment in Cabanas. As a non resident Brit we had to pay 28% tax on profits made - just worth mentioning! Estate agents are around 10%.
Hi Susan, thanks for sharing. I can't quite believe you have to pay 28% tax when selling as a non-resident! I guess they assume it's not your main residence? Unless they do tax main residence too...which is even worse! So roughly speaking (according to Nick's video) tax/costs to buy a property are approx.10% if buying 600k+ of the purchase price. Then you get taxed 28% on profits if/when you sell! WOW!!! You mentioned estate agents; do they charge 10% to sell? That seems excessive! You can probably rent for a long time for all the costs and taxes you end up paying and not have any of the hassle of ownership! I think I'll stick to investing in alternative asset classes and not pay all of these taxes and costs! Thanks for sharing 👏
Hi, no agents generally charge 5% to the seller. That is often split 50/50 between the selling agent and the buying agent. Total costs as mentioned in the video are about 8% not 10% of the house price. Capital gains tax is charged at 28% of 50% of your profit.
@@AlgarveAddicts thanks for the video and sharing the costs. It’s really insightful…by the way I’ve been a fan of your channel for about 4 years and love Portugal ❤️🙌👍👍👍
@@AlgarveAddicts oh and thanks for doing more content on property. It’s helpful, interesting and aspiring to see properties and to understand the market dynamics. 👌🙏
Just went under contract 2 days ago, we have a buyers agent, did an inspection, have a lawyer to check all the documents. The up front purchase costs are significantly higher than buying in the USA, but the interest rates are significantly lower right now as well. The buyer's agents will help shepard you through the transaction, but they are generally operating in their own best interests.
Great video as always! Thank you Nick and Nick. Could you explain how the real estate agent fee works in Portugal? Who pays it and is it a percentage of the sale/purchase price? Here in the US it’s the seller who pays a percentage (around 6%) of the selling price which is then split between the buyer’s agent and the seller’s agent if they are not one and the same. Thanks!
Hi @charliea6825 the Real Estate Nick here. The seller pays a pre-agreed percentage of the sale price, typically 5% + VAT. We split the commission with the selling agent. There are some circumstances where this differs but in the majority cases this is the way it works.
@@nicksmith6625 Hi Nick, thanks for the clarification. What about prospective renters who go through an agent to find an apartment. In Portugal, does the renter or the landlord pay the agent? What determines the fee for rental units? When I rented an apartment in Spain through an agent, I was on the hook for the agent’s entire fee which was one month’s rent.
@@nicksmith6625 Thank you Nick, do I need to purchase a homeowners insurance policy, and if so, what are approx costs annually? How is this calculated?
Thanks for the info, Nick! Congrats to your client on their new property. Looks great👍
Wish Nick Jr 😉 had given us a sense of the length of time it takes to complete each step after you've found your dream property. For example, should you anticipate that it will take 1, 2, 3 week(s) for the surveyor, another 2, 3, 4 weeks for the lawyer etc. etc. Lots of videos out there talk about the Portugese administrative/legal process being convoluted and extremely slow. You never know if that person's experience was a one off, or a fairly accurate depiction.
hi @janyshendrickson3833 - Nick Jr here! That's a hard one to answer in short as every property and moment in time is different. One of the things that we try to do is for see all the steps ahead of time to ensure a smooth process.
Typically though:
1. Offer accepted on a house to survey report in hand 1-2 weeks depending on urgency. At this stage it has to be done in time for the CPCV and if necessary to use it to negotiate the price down should bad items be identified.
2. Offer accepted to CPCV (Promissory Contract) 3 weeks from drafting to signature on the assumption you have a lawyer appointed in advance and a NIF number in place. Things that effect this are transfer of currency, mortgage approval (if required), a suite of appropriate documents relating to the property being available and in order. Also the base negotiations for the deal and deed. This will all vary on property type and situation.
3. Offer to deed all depends on type of a multitude of situations but in can be as quick as going straight to deed, bypassing the CPCV, through to a delayed completion. If a mortgage is needed the process is normally at the mercy of the banks so we look to agree 90 days in the CPCV to allow for problems. If a cash purchase can be a matter of days or weeks after the CPCV is signed and will be in line with Notaries availability.
In my experience it is all about the engine driving it and thats all part of the service we offer is pulling the strings behind the scenes to ensure everything moves forward at the right pace. It is critical to have the right lawyer in place as an arrogant slow one will cause more problems then they are worth.
Hope this helps.
@@nicksmith6625 Hi there Nick Jr. Please relay my appreciation to Nick Sr.😉 for passing along my query. Yes your info does help. Spot on! Thank you😊
Very informative - thank you!!!!!
You're welcome, Michele. 👍🏽
Thank you guys.. this was really useful. Appreciate you both!
Thank you!
Beautiful home... Thanks for this video.
Thanks Nick! Very useful and helpful info!
We recently sold our small apartment in Cabanas. As a non resident Brit we had to pay 28% tax on profits made - just worth mentioning! Estate agents are around 10%.
Hi Susan, thanks for sharing.
I can't quite believe you have to pay 28% tax when selling as a non-resident! I guess they assume it's not your main residence? Unless they do tax main residence too...which is even worse!
So roughly speaking (according to Nick's video) tax/costs to buy a property are approx.10% if buying 600k+ of the purchase price. Then you get taxed 28% on profits if/when you sell! WOW!!!
You mentioned estate agents; do they charge 10% to sell? That seems excessive!
You can probably rent for a long time for all the costs and taxes you end up paying and not have any of the hassle of ownership! I think I'll stick to investing in alternative asset classes and not pay all of these taxes and costs!
Thanks for sharing 👏
Hi, no agents generally charge 5% to the seller. That is often split 50/50 between the selling agent and the buying agent. Total costs as mentioned in the video are about 8% not 10% of the house price. Capital gains tax is charged at 28% of 50% of your profit.
@@AlgarveAddicts thanks for the video and sharing the costs. It’s really insightful…by the way I’ve been a fan of your channel for about 4 years and love Portugal ❤️🙌👍👍👍
@@AlgarveAddicts oh and thanks for doing more content on property. It’s helpful, interesting and aspiring to see properties and to understand the market dynamics. 👌🙏
Another enlightening video
Just went under contract 2 days ago, we have a buyers agent, did an inspection, have a lawyer to check all the documents. The up front purchase costs are significantly higher than buying in the USA, but the interest rates are significantly lower right now as well. The buyer's agents will help shepard you through the transaction, but they are generally operating in their own best interests.
Great video as always! Thank you Nick and Nick. Could you explain how the real estate agent fee works in Portugal? Who pays it and is it a percentage of the sale/purchase price? Here in the US it’s the seller who pays a percentage (around 6%) of the selling price which is then split between the buyer’s agent and the seller’s agent if they are not one and the same. Thanks!
I had the same question. How do Nick and Nick get paid for their services?
Also, how did you figure the stamp duty in your example at 27K euros? Wouldn't it be 40K if its 8% on a 500K euro property? You lost me there.
Check that...I meant the IMT not the stamp duty.
Hi @charliea6825 the Real Estate Nick here. The seller pays a pre-agreed percentage of the sale price, typically 5% + VAT. We split the commission with the selling agent. There are some circumstances where this differs but in the majority cases this is the way it works.
@@nicksmith6625 Hi Nick, thanks for the clarification. What about prospective renters who go through an agent to find an apartment. In Portugal, does the renter or the landlord pay the agent? What determines the fee for rental units? When I rented an apartment in Spain through an agent, I was on the hook for the agent’s entire fee which was one month’s rent.
There are a lot of check lists how to define location depending on your demands.
How can I get information re: rentals, homes for sale in the Algarve please. Not much comes up on the Internet.
THANK you
Just get in touch with us, we may be able to help you www.algarveaddicts.com/contact
Is title insurance available?
Not something that is done here.
@@nicksmith6625 Thank you Nick, do I need to purchase a homeowners insurance policy, and if so, what are approx costs annually? How is this calculated?
Hey Rose, it's more effective to get in touch with us through www.algarveaddicts.com/contact 👍🏽
What’s the approximately price of the house?
I couldn’t see if it was “end terrace” or not !
A mid -terrace T3 there is about €700K.
Detached homes double that.
@@maxflight777 Not a bad guess but €750k - €850k range
The camera should have been aimed AT THE HOUSE AND SURROUNDINGS⁉️⁉️⁉️⁉️
Hehehe, it was. If you look closely.