Whether you are buying or renting a property in Portugal, you must examine each decision’s pros and cons. For instance, you may want to estimate the cost of purchasing a property compared to an annual rent renewal. You must also consider other variables besides price, including a valid D7 Visa Portugal.
You must prove that you have enough income to purchase a property before obtaining a residence permit. If you have been exiled from your home country for a long time, follow the due procedures to fulfill the D7 Visa requirements. However, you can choose to rent a property instead.
External Factors Affecting Portugal Residents’ Decision
Many people are worried about losing their money to mortgage debt due to financial instability. Over the years, people often bought a property instead of being stuck to rent renewal. However, there seems to be a shift recently due to the current economic change.
Unfortunately, the debt rate increased among mortgage users in 2020 due to the pandemic outbreak. The pandemic outbreak led to a massive reduction in most Portugal residents’ income, so buying a property became unaffordable for many.
The duration of a mortgage loan relationship is usually around 35 years. Throughout these years, the property owner will be obliged to pay property tax and maintain the property. You can also check your Portugal d7 visa requirement to confirm your eligibility.
It can be considered a long-term investment, despite the responsibilities of buying a property. Real estate property is blooming in Portugal so that you can sell your property at a higher price in the future. Thus, it is a form of valuable asset you can leave for your future generation.
Nevertheless, you must be financially buoyant enough to make a down payment for the property. Even if you are getting a mortgage loan, Portuguese banks cannot give 100% of the money you need.
Why You Should Buy a Property in Portugal
Buying a property in Portugal requires a lot of legal requirements, whether you are purchasing farmland, garden, backyard, or whole house. Thus, you must ensure the reason for buying a home is worth the time and money.
You should consider buying a house if you have a family and a stable income. It provides stability and property security. In this case, renting would seem like a waste of money, especially when you want to build equity. The annual or monthly rent you give to your landlord can be allocated to other essential expenses.
The Cost of Buying a Property
According to the research report from the Residential Price Index of Confidential Real Estate, Portugal’s house price hike is about 12.3%. As expected, the price is higher in large-density areas than in the interior parts of Portugal.
High-density places like Lisbon require roughly €3.346/m2 to buy a home. If you are looking forward to cheap investments, houses in Alentejo and Azores cost €1.109 and €1.047, respectively.
Why You Should Rent a Property in Portugal
Renting a property in Portugal is ideal for people with a D7 Visa who are yet to settle their career choice. If your career location is not fixed yet, and you do not want to take the risk, you can consider renting a property. Renting a property in Portugal also enhances flexibility.
For instance, you may freely choose to relocate due to a disturbing neighborhood or long commute distance to your new workplace. If you want your freedom and do not want to be tied to a place, then you can go for this choice.
When you check your Portugal d7 visa requirement and are unsure of your stay duration, renting an apartment is the short-term solution you need. It helps you to plan your life until you are sure to make the best decision for yourself.
This is also recommended for people who save up for their dream house and want to spend less at their early stage. Thus, newly married couples primarily receive house rent age, especially when they want to avoid excessive legal responsibilities.
The Cost of Renting a Property
The average rental income in Portugal has increased by 11.5% compared to the €6.03 per meter square rent in 2021. However, the rent cost also varies with location, with Lisbon being the most expensive area compared to other places.
The average rent cost in Lisbon, Madeira, Porto, and Algarve are €8.82, €6.32, €6.40, and €6.96, respectively. Other factors, such as proximity to commercial and recreational centers, may influence price variation.