23/04/2024
Buying an apartment in pre sale - stages, advantages, and what must be checked
The real estate market in Portugal, and this is already known, has been very hot and dynamic in the last two years. The yields are soaring to impressive levels due to accelerated immigration and tourism development all over the country. The fact that local residents from Portugal do not come to buy an apartment and turn to the rental market also works in favor of investors.
In this context, by the way, we will mention that the banks in Portugal are very open to the leverage of foreign investors, and we will write to you about this another time.
Construction starts and new projects are part of the development that is gaining momentum here in recent years due to market demands. Therefore, applying for the purchase of an apartment in pre-sale is a logical move that can save you hundreds of thousands of euros, and up to 30% savings. Moreover, in a pre-sale apartment, you can sell the apartment at the stage of the beginning of occupancy at a large profit and earn a considerable amount of money after investing a significantly lower amount of money in the pre-sale stage.
Buying a new apartment has several steps*:
( * In the coming week we will publish projects in various stages of sales)
1.Buying an apartment before there is an actual building permit - this is the presale stage!
2.Buying an apartment after having an actual building permit.
3.Buying an apartment after the permit and with the start of construction.
4.Buying a built and finished apartment for immediate occupancy.
Of course, the earlier the stages, the significantly cheaper the price, but the risk is also higher. Therefore, it is very important to check exactly what stage the entrepreneur is at.
These risks vary from entrepreneur to entrepreneur. That is, it is very useful to divide between two types of contractors and entrepreneurs: Great entrepreneurs - usually, act correctly and apply pressure to achieve goals on time. Small entrepreneurs - in many cases find it difficult to keep promises to buyers.
If you purchase an apartment in pre-sale from a small project, there is a high probability that there will be delays in obtaining the permit and in the construction itself.
This means that there are different levels of risk between a small entrepreneur and a large entrepreneur and this should also be recognized. Additional tips for the summary:
It is recommended to check the following documents (and we recommend doing so accompanied by a local lawyer):
A document attesting to the purchase of land intended for residential construction.
A document attesting to the submission of an application for a building permit
A document attesting to obtaining bank financing for the construction costs of the project.
A document attesting to the actual construction in accordance with the construction permit received (with the project currently under construction).
Our additional tips for finishing:
Check ownership of the land at the legal level if there is still no building permit.
Contingency of entering into a contract with timetables for a building permit and commencement of work.
The condition of entering into the contract in accordance with the guaranteed product presented to us at the time of signing.
Ask for the assistance of a real estate lawyer who will look after your interests and not the developer's. If you wish, you can contact us privately for recommendations and questions
