RENT OR BUY IN PORTUGAL
renting is becoming less profitable than buying in Lisbon. In this context, the French remain the first buyers of property in Portugal.
Portugal was elected last year as the first destination the world, recently reported the Jornal de Notícias. Among foreign investors who buy a property to settle down. The French still largely dominated the ranking, ahead of the Americans and Italians.
A figure from the Jornal de Negóciosis a challenge. According to the economic daily, "renting a house is now 65 % more expensive than buying one in Lisbon". Leases decreased by 8 % last year in Portugal.
The two main reasons for this increase: Rents increased by 9.3 % in the second half of 2018 in Portugal and up to 27 % in some areas of the capital. On the other hand, banks are now offering ever more advantageous housing loans.
Porto, the difference even more significant
The Jornal de Negócios simulated the acquisition of a 100 m2This is the case with a loan equal to 80 % of the value of the property, an interest rate of 1.74 % and a term of 33.3 years. The verdict: paying rent each month would be 65 % more expensive than paying back a mortgage.
In Porto, the difference is even more significant and would amount to 100.5 % and even 140 % in the neighborhood of Campanhã, where the rent would be 619 euros per month, against a repayment to the bank of 256.3 euros.
You will have understood that renting or buying in Portugal becomes uninteresting when you focus your search in the big cities. We can only encourage you to search in the outskirts of the big cities where good deals are still possible.