Restoring and Renovating a Property in Portugal

The financial advantages of renovating and restoring are immediate as these types of properties often cost a great deal less to buy with reduced purchase price, costs and taxes. By spreading the cost of the repair work over a longer period of time can also be less taxing on your bank account. And by carrying out some of the work yourself, savings on labour costs can be made.

However the key to a successful renovation and restoration project is selecting the right property. Simply purchasing the cheapest property available is not always the most financially sensible thing to do.

Generally restoration property falls into two categories, those requiring full planning permission and those that don’t need permission but can be restored immediately as a DIY project.

“Although there are many ruined properties available in Portugal, most at really attractive prices” says Derek Harper of Chavetejo Estate Agents in Tomar. “Buying one in very bad condition without public utilities connected doesn’t always make financial sense in the long run. Getting mains water and electricity connected isn’t as simple as making a phone call and in most cases can mean a lengthy and costly planning application, delaying the start of renovation works by months and sometimes years.”

Choosing a property in a slightly better condition with utilities already connected can save you thousands in the longer term and mean renovation work can begin as soon as you have decided on the finished design.

Avoiding properties requiring planning permission also means you can save money on the renovation work, carrying out some of the less skilled jobs yourselves. However even if you choose to bring in the professionals it doesn’t have to cost the earth.

Deciding to employ a builder in Portugal doesn’t have to be financially painful. There is a wealth of skilled tradesmen available and despite the fall in the exchange rate, they charge a fraction of the cost of their UK counterparts. Reputable builders can charge as little as 10€ an hour with labourers earning around 8€ an hour.

Generally the quality of workmanship in Portugal is very high, but it is important if you do decide to employ outside help, to get at least three quotes from reputable builders as well as references from previous clients. Being able to inspect jobs they have carried out will also give you peace of mind on the quality of your finish.

Getting your lawyer to draw up a contract with the builder you decide to use is not only a good idea, but will put paid to any demands for extra money and allow a clear method of stage payments for the each section of the work as it is carried out.

Checking out local builders merchants and DIY supermarkets is a good way of ensuring you are not being over charged for goods by builders and it will help you decide on the finished specifications of your property.

Remembering not to get carried away on the renovation work is also imperative. Taking into account the possible resale value of the property, thinking carefully about what you want to achieve during your design period will help you budget accordingly. Common mistakes made during some property renovations are adding expensive features, which don’t necessary add value to the property.

If you are not going to be present in Portugal for the duration of the renovation work, but hundreds of miles away in the United Kingdom it is worth investing a little of your budget employing a project manager.

Although it may not be a cost you initially think about, it is well worth spending a little extra on a project manager who can oversee the job on a day-to-day or week-to-week basis, reporting back to you frequently to ensure works are carried out on time and to your specification. In the long run this can save you undue heartache and sleepless nights.