Buying a house has been a popular investment type throughout the years. It offers several advantages for investors including tax advantages, flexibility, and income generation.
In that regard, Portugal has been a very popular destination for real estate investment throughout the years. It offers a quality life, a rich culture, and a great location. It also provides affordable properties for buyers.
You may need to familiarize yourself with the process of buying property abroad. Don’t worry, you can find the main things about this process below. Let’s start.
Benefits of Investing in Real Estate
Investing in real estate can be a profitable and stable way to grow wealth over the long term. Let’s find out some of the main benefits of investing in real estate below.
You Can Generate Income
If you buy a residential property, you can use this property as an investment method by renting it. In this way, you can get passive income. Also, if the property is in a good location, its value increases regularly.
Real Estate As A Tangible Asset
An attractive feature of this investment method is that you can live in it or improve it as you like. Also, the real estate market is not affected by fluctuations either.
You Have Several Options With A Real Estate
Investing in real estate brings you more flexibility such as the freedom to flip and sell it. In addition, you can rent it as well, if you want to. So, the control is with you.
It’s More Profitable Than Renting
Another important benefit of real estate investment like buying houses for sale in Portugal is that mortgage costs are less than renting a house. Also, you can receive the mortgage costs in time by renting out your house.
Why Invest in Real Estate in Portugal?
So, buying real estate comes with many benefits, and buying houses for sale in Portugal definitely means there are great benefits. You can find out these advantages below:
- Affordable Prices: You can find various affordable properties throughout the country. In addition to that, the property types are various, including apartments and villas. Also, you can enjoy the low cost of living in Portugal, if you decide to live in the property you buy.
- Low Taxes: The NHR program in Portugal offers low taxes for new tax residents. If you decide to live here as a resident, you can benefit from the program. Also, you can benefit from low taxes on your income for 10 years. You can also become exempt from your foreign income taxes.
- Portugal has a good climate and geography. You can enjoy the sunshine most of the year in this country. Also, there are many areas to enjoy the sea and rivers. You can buy houses for sale in Portugal in these areas as well.
There are various property options in Portugal when it comes to buying one. They are located near the sea, in rural areas, or in the city center. So, depending on your choice, you can find any property anywhere. Those who want to live in business centers choose to buy property in Lisbon or Porto.
How Can You Invest in Properties?
There are different methods to invest in properties. These include rental property, REIT, and fix-and-flip.
Among them, investing in rental property is the most traditional method. It includes buying a property and renting it out. It’s also possible to rent out one unit of the property when you live in it. Investing in rental property generates rental income, and this attracts many investors.
Another option is to invest in REITs (Real estate investment trusts). This option is similar to mutual funds. You invest in real estate under this option, however, they are not physical property. REITs are companies that own types of commercial real estate. They are traded on stock exchanges. This means that you can buy shares and get dividends on a quarterly basis.
If you prefer a short-term commitment, you can choose house flipping. This option includes buying a property that requires renovation. After you renovate it, you can resell it.
In short, you have several options when it comes to buying property. Portugal is among these country options which provide many profits. Start searching for such properties and make your investment!