Apartments In Faro
With the buoyant property market in the Algarve showing every indication that it will provide a good investment for the foreseeable future, apartments are currently the most popular type of accommodation for investors or people wanting to purchase a second home abroad.
This is because if you purchase an apartment which is part of complex, services such as maintenance, gardening, pool cleaning, etc, are put in place by the community and managed by the elected president. Thus removing your concerns of living in one country while trying to maintain your apartment overseas.
The Algarve has a rather more exotic charm than neighbouring Spain as it is less over developed and has suffered less exploitation. Planners have managed to retain the appeal of the coastline by keeping it unspoilt and taking great care to protect the entire region from beach front development. You cannot build closer than 500 metres to a beach and to try and get permission to build anything above four storeys high is virtually impossible.
It is worth considering buying an apartment off plan as this is when you can still purchase at a relatively low price and see a return on your investment when the property realises its full value after completion. A one bedroom, one bathroom apartment in Faro can cost anything between €125,000-€230,00.
Property is sold on a freehold basis, and when negotiating a price do not forget to add on the tax which certain purchases attract. For example, 7% (known as IVA) should be added to any figure that you are quoted for an apartment which is a new build, Resale properties do not attract IVA, but there is a 7% property transfer tax.
When buying off plan you will be asked for anything between a 10%-30% non refundable deposit when signing the preliminary contract, and you may also be asked for as much as 30-40% of the purchase price to be paid while the property is still under construction, with the balance being due when the Final Deed and Completion takes place.
If the vendor drops out during any stage of the purchasing process any monies you have paid will be returned, together with a penalty. Make sure that you instruct a recommended lawyer to act on your behalf to ensure that all the documentation is water right.
Buying property is a stressful process no matter where you are in the world. If you click on the estate agents section of this website you will find contact details for several reputable firms in the Faro area who have excellent local knowledge and who will be able to guide you through the whole process.
