Source: Adobe Stock Author: Redaction In addition to choosing the house of your dreams, the decision on which interest rate to choose is one of the most important when taking out a mortgage , as it is something that will accompany you until the loan is paid off. Rates change according to the market and its financial indicators, so to help you understand the differences in the rates available, SUPERCASA Notícias will answer your questions. We are currently living in times when inflation in the Eurozone is out of control, and the major impact is on citizens, increasing the cost of living in general. With this in mind, the ECB (European Central Bank) has been studying the possibility of reducing interest rates, which are closely related to inflation , thus causing gradual relief and greater financial leeway for families. These changes fluctuate with the Euribor , which in turn is calculated daily and defines the average interest rate on interbank loans . The fixed interest rate If you opt for a fixed interest rate, you will always pay the same amount to the bank regardless of Euribor fluctuations. However, you should bear in mind that you may end up with a higher amount compared to the variable rate, due to the security of not having increased instalments. The rate to be applied depends on the bank, but is based on market values for the same term - this is called the swap rate. The advantages are therefore predictability and security, allowing for more precise financial planning since the monthly instalments will always be the same, and protecting you against unexpected interest rate rises , which can be crucial for families with tighter budgets. The cons, on the other hand, are cost, as the fixed interest rate is generally higher than the variable one due to the risk taken on by the bank, and inflexibility , as it prevents you from benefiting from potential drops in interest rates during the contract period. The mixed interest rate This is the rate that has been most sought after, as it has fixed interest at the start of the contract, followed by a variable rate . Those looking for greater stability prefer this rate as it is not subject to variations. It thus combines the characteristics of fixed and variable rates, dividing the contract period into two phases: in the first, the rate is fixed for a set period - for example, 5 or 10 years - while in the second phase the rate becomes variable, indexed to Euribor. This type of rate thus offers balance and savings potential, as you will have greater flexibility and benefits in relation to falling interest rates during the variable phase, but also in the first few years, during the fixed phase, when the impact of instalments on the budget is more critical. On the other hand, the mixed interest rate type gives less predictability, increasing the feeling of uncertainty, as the monthly instalment could go up after the fixed rate period if interest rates rise, making it difficult for you to plan your finances in the long term. The variable interest rate If you opt for the variable interest rate, you need to bear in mind that it depends on two factors: the spread and the 3 or 6 month Euribor rate. So if you opt for this version, you can expect to pay more if the Euribor rate rises. On the other hand, if it goes down, youll pay less. So the advantages lie in the cost and savings potential , while the disadvantages are intrinsically linked to the risk and unpredictability of interest rates, which can go up as well as down. Which is the best choice? Its important to bear in mind that each situation is unique and specific and should always be monitored by a financial institution, which will present you with the best conditions and options for your financial availability and profile. Nevertheless: - If you value security and predictability, a fixed rate may be the best option, even if it implies a slightly higher cost; - If youre looking for a balance between security and flexibility, a mixed rate may be a good alternative; - If you have a higher risk profile and are willing to take a risk in exchange for a potentially lower cost, the variable rate can be advantageous, as long as you are prepared to deal with the possibility of increased instalments. Remember that the choice of interest rate is a crucial decision with significant potential for your long-term finances. Investing time in analysing the different options and consulting a credit broker is key to making the right decision for you and your future. The criteria you should take into account before choosing are: - The stability of your income; - The term and amount of the bank loan; - The potential for career progression. If you found this article useful, then read: Three tips for dealing with rising instalments , What is a bank moratorium? Find out more , The 10 steps you need to take before going ahead with a house purchase or Home loans: what you should propose in a renegotiation
Source: Freepik Author: Redaction The report Home for all: Access to Affordable and quality housing for all people, prepared by ESPON - European Spatial Planning Network Observatory, points out a worrying reality in the purchase of housing in Portugal, demonstrating that there are places where, to purchase a property of 100 square meters, it is necessary to save for more than 35 years. The regions where this reality is verified are Madeira , the Algarve and the Metropolitan Areas of Lisbon and Porto , considered red zones compared to the rest of Portugal. The analysis was based on the European regions, included in NUTS III, comparing the values advertised in various online advertisements, on 7 March this year, with the income per person, and it is possible to conclude that with 40% of GDP per capita available, It takes more than 35 years to collect this amount and thus be able to buy a house with 100 square meters in the highlighted regions . In other parts of the country, the time required decreases to 10 to 30 years. The report indicates that regions containing and surrounding capitals such as Paris, Berlin, Lisbon and Madrid are often less accessible compared to the rest of the country , although the trend is also in coastal regions, such as the Netherlands, Portugal, Spain and France. Prices have skyrocketed out of step with the increase in income, explains demographic researcher Alda Botelho, who indicates that there are more aggravating situations on the coast, although prices are also overvalued in the interior. Related: Fewer houses were sold in Portugal last year , House prices: Portugal exceeds the Eurozone and EU average and Housing transactions decreased in the 1st quarter of 2024
Source: Freepik Author: Redaction The decree-law that stipulates the conditions of the public guarantee in the purchase of first housing, own and permanent, by young people up to 35 years, was published this Wednesday, July 10, in Diário da República, and the measure is expected to advance within 60 days. According to the publication in Diário da República, the document establishes the conditions under which the State can provide personal guarantee to credit institutions with a view to the viability of granting credit to own and permanent housing to young people up to 35 years , fitting to the members of the Government responsible for the areas of finance, housing and youth approve, within a maximum period of 60 days from the entry into force of this Decree-Law, the regulations necessary to the provisions of this Decree-Law . In this way, all young people aged 35 years or less, who buy a house for the first time, will be able to resort to financing up to 100% of housing credit , with the State providing personal guarantee to credit institutions. With this benefit, young people can more easily buy a house, since it is possible to grant credit. According to the document, Banco de Portugal and the Portuguese Association of Banks were heard , stipulating that, in order to access the public guarantee, young people must comply with the requirements determined for this purpose, namely be between 18 and 35 years of age, with tax domicile in Portugal , and have income that does not exceed the 8th tier of the IRS. In addition, in order to be able to benefit from the financing, they cannot own another property that affects the house and the house they acquire cannot exceed the value of 450 thousand euros, being defined as the limit of the guarantee 15% of the transaction value . The Minister of Finance pointed out that the measure was developed jointly with Banco de Portugal, stressing that there is no dispute with Banco de Portugal on the matter, ensuring that Banco de Portugal is involved in the process, having been consultation and coordination with the financial supervisor. Read also: IMT exemption on house purchase will take effect in August
Source: Freepik Author: Redaction According to Eurostat published this Tuesday, 9 July, house sales have fallen both in the European Union (EU) and in Portugal , which is one of the 13 of the 16 EU countries for which data for the previous year is available, where this trend has been seen for the second year running. The data from the European Statistical Office shows that in 2023, property transactions fell by 19.8% in Portugal, placing our country in the middle of the table , although the biggest falls were reported in Luxembourg, with -43.3%, Austria, with -26.4%, and Hungary and Finland, both with -24.5%. The countries where there were increases were Cyprus, with growth of +31%, Poland, with +3.9%, and Ireland, with an increase of +0.6%. Also read: House prices: Portugal outperforms the Eurozone and EU average
Source: SUPERCASA Author: Redaction Imagine a house with stunning views, which merge with the horizon, and unique convenience, which provide you with comfort and serenity. That’s life in a penthouse . Living in this type of property means being on top, literally and figuratively , giving you a sense of freedom and unparalleled breadth, as a haven of luxury and exclusivity. The sky is its roof and the city lives at your feet, with panoramic views that change with the colors of day and night. More than an apartment, a Penthouse is a private oasis on the heights, with spacious balconies, often with grills and gourmet areas, invite for moments of leisure. It will be part of an exclusive world , where luxury and sophistication meet, with differentiated services that will make you feel as if you were in the scene of a movie. Enjoy the options selected for you, available for sale at SUPERCASA , and enjoy the beauty of these properties. Penthouse T2 in Portimão, Algarve - 455.000€ Penthouse T2 in Campolide, Lisbon - 480.000€ Penthouse T4+3 in Mafra, Lisbon - 1.100.000€ Penthouse T3 +1 in Cascais and Estoril, Lisbon - 2.300.000€ Penthouse T4 in Oeiras, Lisbon - 2.500.000€ If you liked these options, find also Summer investments: find properties at a good price
Source: Freepik Author: Redaction The Public Procurement Code (CCP) is expected to change this summer by the Government led by Luís Montenegro, in a fight to meet the objectives set out in the Recovery and Resilience Plan (PRP), namely public housing works , will amend the code to prevent litigation by competitors who have lost the tenders and thus speed up the works. It is essential to review the entire public procurement system, because Portuguese legislation is more demanding than European obligations. Today, it is proven that all pre-contractual litigation delays the realization of the works in a dramatic way, commented the Deputy Minister and Cohesion, Manuel Castro Almeida. Delays in public works are therefore a cause of consternation for competitors who lose tenders, who contest the decision and ultimately delay the award of works: we cannot risk failing to implement [European] funds because of bureaucracy and pre-contractual litigation, he said. The amendment is ambitious , but the outline of the changes to be made is still being drafted and is expected to be presented during the summer. Read also: Global value of public works tenders was 5M€ and Government has already asked for the 5th PRR check to Brussels
Source: Freepik Author: Redaction According to data published last Friday 5 July by Eurostat, house prices in Portugal are showing no signs of falling, continuing to rise above the average for the Eurozone and the European Union (EU), which, despite also continuing to rise, are progressively slower. Between January and March this year, the Portuguese market saw year-on-year growth of 7 per cent, still above the average of 1.4 per cent recorded in the EU countries, and still far from the 0.4 per cent correction felt in the 20 member countries of the Eurozone . However, despite having risen sharply, house prices in Portugal are beginning to show signs of slowing down , with the quarter-on-quarter change standing at just 0.6 per cent, compared to 1.3 per cent in the previous quarter. Year-on-year growth, on the other hand, was 7 per cent, compared to 7.8 per cent in the final quarter of last year. The figures may correspond to a turning point in the market , after large rises had been experienced and, according to Eurostat, following Portugal, with a year-on-year price increase of 18 per cent, are Bulgaria and Lithuania, with increases of 18 per cent and 16 per cent respectively. Related: Interest rates: BdP governor advises ECB to be prudent , Bank valuation of houses rises for the sixth month in a row and House sales slowed by 4.1% in the 1st quarter of the year
Source: Freepik Author: Redaction Speed and information are two crucial characteristics for success, as they affect the finalisation of deals in a competitive and increasingly demanding market . Thats why Infocasa , the leading property information platform in Portugal, offers its clients the New Property Alerts tool, essential for staying ahead of the competition in such a competitive market. With New Property Alerts, property professionals receive instant notifications about new properties matching their clients search criteria, allowing them to: - Be the first to know about new properties on the market; - Increase their success rate in letting properties; - Offer a personalised service to their clients. Being the first to reach a property is what will set you apart, so receiving immediate notifications about new properties that match your clients search criteria, before the competition discovers them, will be your secret weapon for better listings . Whats more, by being the first to contact the owners, youll have a better chance of finalising the deal, and you can show them that youre attentive to their needs and, in the case of a buyer client, that youre always looking for the ideal property for them. How do I use New Property Alerts? To use New Property Alerts all you have to do is sign up to Infocasa, with as many users as you need for your agency, and define the search criteria, which you can choose from: - Type of property (flat, villa, plot of land, etc.); - Location (city, district, area, etc.); - Price (minimum and maximum); - Characteristics (number of bedrooms, bathrooms, floor area, etc.). Once you have defined your search criteria, you will receive email notifications whenever a new property with the characteristics you are looking for is put up for sale, and you can choose the frequency of these notifications - daily, weekly or monthly - helping you to stay on top of events. In addition, you can also receive alerts on price fluctuations, with properties entering and leaving the market , which will help you keep your strategy current and well-defined. Infocasa is the leading property information platform in Portugal, offering its clients a wide range of tools and services to help you compare, sell or rent property . You can visit the Infocasa website and find out more about these platforms.
Source: Freepik Author: Redaction The exemption of IMT and Stamp Duty (IS) in the purchase of home by young people up to 35 years can generate tax losses , already from August, when the measure comes into force, since last year, compared to the same period, losses were recorded in both taxes, according to the tax authorities. In a note published in early June, the Tax Authority (AT) indicated: in 2023, the Municipal Real Estate Transfer Tax (IMT) corresponded to 1,751 million euros, obtaining, in relation to the previous year, a decrease of 0.7% . However, the revenue from the IMT distributed by the municipalities increased by 1.1% compared to 2022, to 1,675 million euros. Regarding the number of IMT collection notes issued in 2023, which amounted to approximately 288 thousand, there was a decrease of 10% compared to 2022, adds the Treasury. On the Stamp Duty, AT explains that it stands out, negatively, the revenue related to the purchase of real estate, with a decrease of 10% compared to the same period . Thus, approximately 330 million euros were collected in Stamp Duty from the purchase of real estate, while in the lease and sublease the IS amounted to only 19.8 million euros, adding 20.4% compared to 2022. Thus, by contemplating the Government measure that provides for the exemption of IMT and Stamp Duty, municipalities will feel a decrease in revenues from these two taxes, although the executive has already guaranteed that municipalities will be fully compensated . Continue reading: Bastonários foresees intensification of deferrals of deeds , Exemption from IMT and Stamp Duty: measure divides Portuguese and Tax exemption in house purchase allows access to over 35
Source: Freepik Author: Redaction The law extending access to the Porta 65 Jovem rental support programme, the amendments to which now provide that a candidate who turns 36 years old during the period in which he receives support, has been published in the Official Gazette on Tuesday, July 2, can also apply, provided that consecutively. If the young person completes 36 years during the period in which he receives the support, he can still apply up to the limit of a subsequent application, provided that consecutive, indicates the diploma, approved last May in the Council of Ministers and promulgated by the President of the Republic in June. Another amendment concerns the extension of applications to young people in cohabitation, aged 18 years or more and equal to or less than 35 years, sharing a dwelling for their permanent residence , in addition to couples of young people not legally separated from persons and property or in a de facto union, residing in the leased, aged 18 years or more and aged 35 years or less, and one of the couple may be aged up to 37 years. These novelties will come into force from September, with no limits on maximum rent, which means that a candidate who has found a house to rent for the amount of 401 euros, may be eligible, since the maximum ceiling of the municipality in which he resides, of 400 euros, will have no effect on eligibility for support. On the other hand, to benefit from the support, the minimum income of the young person or household cannot be more than four times the value of the maximum reference rent , and the prior presentation of a lease or the promise of a contract is no longer necessary. More themes like this: Is landlord with old rent? Already can ask for compensation , Rents of municipal housing in Lisbon will not rise this year and Enlargement of access to Porta 65 Jovem is promulgated
Source: Freepik Author: Redaction There has been an increase in the number of postponements of deeds, following the decree-law that exempts young people up to the age of 35 from IMT and Stamp Duty on the purchase of their first permanent home. The trend, which began towards the end of May, was reported by Jorge Batista da Silva, head of the Notaries Association , who projects an even more intense increase in the coming weeks, since the tax exemption will only come into force on 1 August. However, according to the president of the Order of Notaries, caution is needed in postponements, as there may be non-compliance with what is stipulated in the CPCV of the property purchase: not all people can postpone because there are deadlines for fulfilment of the promissory contract that may not be compatible with the postponement, and there has to be some care on the part of those who are buying a house . The Association of Real Estate Professionals and Companies of Portugal (APEMIP), led by Paulo Caiado, says: Obviously, anyone who is in an age group that falls under that measure will naturally seek to delay the deed in order to take advantage of that tax benefit . Find similar topics in SUPERCASA Notícias
Source: Freepik Author: Redaction According to the International Monetary Fund (IMF), there is a need for continuous monitoring of the risks to financial stability caused by the property market , having found that the set of measures implemented by António Costas previous government, such as the interest rate subsidy, the postponement of capital repayments or the renegotiation of home loan contracts, may have delayed the emergence of vulnerabilities. The International Fund, which visited Portugal as part of the Article IV programme to assess the countrys economy, points out that although Portugal can count on the easing of interest rates, which may gradually relieve pressure on households, there may be some lag , with an impact on banks balance sheets due to a deterioration in asset quality. Residential property prices have continued to grow above fundamentals, stresses the IMF, considering that the current governments methods of governance may be appropriate , by encouraging an increase in the supply of housing in favour of the low accessibility to supply that is taking place. Regarding the Bank of Portugals (BdP) macro-produdential measure, which includes the creation of a financial cushion for exposure to the residential property market, the IMF praises it, indicating that it will help strengthen banks resilience to macro-financial risks arising from property exposures . Depending on the evolution of risks in the residential property sector, as well as broader macro-financial risks, the Bank of Portugal may have to recalibrate the [reserve] system and adjust other macro-prudential measures, says the monetary fund, leaving as an example the implementation of a positive and neutral countercyclical reserve of own funds, in order to transform banks temporarily high profits into releasable capital . Other economics topics that may interest you are: Stock of bank deposits reaches record number in May , Government measures could put pressure on public accounts
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