Following a number of questions on Off Plan purchases in the Algarve, Portugal here are a few answers that may help you to decide to invest in an off-plan property.

Off Plan is just what it says. It is purchasing prior to the build commencing" off the plans" or very early in the construction phase. Typically a process by which developers make available to the public properties they plan to build.

Should you wish to cancel your reservation within 15 days, you will receive your reservation amount back within a few days. Since your money will be held in escrow you will simply be asked to provide a letter faxed expressing your intent.If you decide to change your mind after the signing of Promissory Contract you must expect to loose the deposit you have submitted.

You should only trust agents who are licensed with an AMI number to sell Off Plan Real estate and who are working with reputable developers who are fully licensed. Portuguese Law is very strict and regulates the process and time line as well as how money is handled.

The answer to this is “it depends”. It depends on the market. It depends on your cash investment. It depends on your exit strategy. You will find that many people have doubled their investment, or better.

While the reservation agreements usually do indicate that pricing is subject to change we have never experienced this. It would not be in the best interest of the developer to jeopardize alienating those who reserved units by raising prices. A reservation agreement secures the price. The builder will increase the prices of those units not reserved over the course of the build.

It is best to start by contacting your local bank either in the Algarve or in your home country to get a mortgage. In many cases, a development will offer you a bank with whom they have a relationship for issuing mortgages on their property, often with favourable terms.

Please call one of our very experienced consultants here in the Algarve on the contact Nº s given.