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Covid-19 & The Property Purchase Market In Portugal

At the moment everyone is worried about the Covid-19 virus and the effect it might have on the health of oneself, loved ones and wider circles.

These worries are understandable, however can be overwhelmingly increased by something far worse than Covid-19: Fear.

Fear is all around us nowadays, in the news, social media, everywhere! Fear affects another important thing: Confidence.

People lose confidence in themselves and in the future. Fighting fear and lack of confidence is as much important as is fighting Covid-19.

What does this have to do with property purchase in Portugal, you might ask?

Everything!

Portugal is handling the pandemic quite well, being far more effective in it’s fight than other southern European countries. Nevertheless the impact of Covid-19 is in the news daily and the real estate market is likely to be one of those that will be hit with a larger impact due to fear and lack of confidence.

Some people will stop their intentions to buy and the uncertainty in the market can make prices go down. In recent years, property prices have been rising steadily, some of them without any real reason other than the rule of supply and demand. Many people looking for properties means the prices rise. If the number of people looking for properties decreases, lower prices could be more easily negotiated by interested buyers.

This is not to say that people should take advantage of Covid-19 and all head out to buy properties at a lower than fair price! More that some properties might move from a previously higher, more unfair price to a price that is fairer and more in line with other properties that are for sale.

Those who do not crumble in fear, may well have an opportunity to buy a property more in line with their budget!

Having overcome fear and lack of confidence factors, you have to ensure trust is in place. This can be found with a good promissory contract (see our previous blog about the importance of promissory contracts here.)

Due to the virus people can’t travel so readily, we do not know how long they will be forbidden to fly for, with this in mind, it is even more important than ever to have legal counselling, in plain English, that can help you go through with a purchase successfully. We are at this very moment working with clients that live abroad and are buying properties in Portugal. We can handle any issues and ensure papers are in order to secure properties, with contracts that give our clients the security they need in a property purchase deal.

The promissory now has to have a special clause about Covid-19, to ensure safety in the signing, this has to be written in Portuguese and in English so all paeries can tell exactly what they are agreeing too. Having proper legal help will be fundamental to ensure this matter is handled in the correct way. You need to be sure you are working with professional people who know the laws, and can give you correct and relevant advice for your own peace of mind.

If you overcome fear, lack of confidence and trust issues, with legal help that makes you feel secure, you might find this is actually the perfect time to buy your dream property!

Nuno Almeida
(Lawyer)

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