Source: Freepik Author: Redaction In January 2024, cement consumption on the domestic market totalled 339,000 tonnes, a year-on-year increase of 23.6%, according to the housing statistics summary sent by AICCOPN to SUPERCASA Notícias . With regard to municipal licences for new construction or refurbishment of residential buildings, there was a reduction of 6.5 per cent compared to the same month last year . As for the number of dwellings licensed for new construction, there was also a year-on-year decrease, with a variation of -16.4 per cent, for a total of 2,394 dwellings. In January, there was a year-on-year increase of 24.7% in the volume of new mortgage loans , excluding renegotiations, granted by financial institutions, which totalled 1,184 million euros. The implicit interest rate on mortgage loans stood at 4.66% that month, an increase of 2.47 percentage points on the same month last year. With regard to the median value of housing valuations for the purposes of bank loans, January saw an increase of 4.4 per cent year-on-year, as a result of variations of 3.2 per cent in flats and 6.1 per cent in houses. Centre region in the spotlight In the Centre Region, the number of dwellings licensed for new construction in the twelve months ending in January 2024 was 4,321, an increase of 17.1% on the 3,723 dwellings licensed in the previous twelve months. Of these, 13 per cent are studio or one-bedroom units, 26 per cent are two-bedroom units, 47 per cent are three-bedroom units and 14 per cent are four-bedroom units or higher. As for the bank valuation of housing, there was a year-on-year variation of 3.8 per cent in this region in January. Follow more topics like this in SUPERCASA Notícias
Source: Freepik Author: Redaction If you have a home loan it is important to be aware of how mortgages work and everything that involves this guarantee to the bank, which can be canceled in three different situations . Through the mortgage, it ensures the payment of the housing credit that it has with your bank or financial institution, even if it defaults, since the mortgaged asset serves as a guarantee to pay the debt . But we explain everything to you in greater detail. What is a mortgage? When you buy a home using mortgage credit, you can take out a mortgage to ensure that the money the bank has lent you will be paid. In other words, it is a guarantee . Your financial capacity is assessed at this time in order to understand whether or not you will be able to repay the loan you want to borrow. Thus, the mortgage serves to minimize the risk of default, which is usually the property to acquire. However, it can be mortgaged, too, the property of a third person, and there are banks that accept the mortgage of the borrower’s family home. In short, the mortgage is the guarantor of financing for the purchase of a property, which allows buyers to pay the value of the property over a period of several years. In what situations can the mortgage be cancelled? The scenarios that may involve the cancellation of the mortgage are the sale of a property registered with a mortgage, the payment of the mortgage debt or a situation of foreclosure. Discover each of these situations. When you sell a house with a mortgage When buying a house with the financing of the bank, through a housing loan, you can see, in the future, with the sale of the same property. In this situation, where you sell the property that the bank is paying for, you can effectively cancel the mortgage. In this situation, it can only do so if the money acquired with the sale of the property is sufficient to pay the loan contracted , and must request, for this purpose, the cancellation of the mortgage and proceed to the registration of the sale of the house to the new buyer. When you pay the mortgage debt When you manage to settle the mortgage debt, you can ask for the cancellation of the mortgage, because if you have paid your debt, you no longer need to provide any guarantee. After eliminating the mortgage, you must cancel your registration in a Land Registry and, after having your mortgage loan fully paid, the bank sends you a document confirming the cancellation of this guarantee. In this situation, your contract obligations are fully fulfilled. The document that the bank will send you is called a mortgage . When you expunge the mortgage on the property you bought It can happen to buy a house with a mortgage, and it is possible to cancel it after the acquisition . The law says that the new owner of the mortgaged house can proceed to this cancellation, however, only through a judicial process. Thus, if you have bought a property recently, and it is mortgaged, after registration the purchase will not be responsible for the payment of the previous mortgage. In this situation, you must inform the creditors of the procedure, completely pay all the debts associated with the mortgage or reach a payment agreement with the creditors, which may involve the payment of an amount equal to the value of the purchase of the property. After these procedures, you must file a lawsuit with the court, proving that everything went well. Have you been clear about this? Follow SUPERCASA Notícias for more topics like this and, if you still have questions about how you can sell your home, we advise you to read Formalize the sale of a property: what are the bureaucracies
Source: Freepik Author: Redaction The Bank of Portugal (BdP) released this Monday, March 25, its report monitoring the macro-prudential recommendations, where it reveals the profiles of new customers of housing loans contracted in 2023 . According to the analysis, the profile of new customers improved , despite not being directly comparable with that of previous years. According to the bank, 61% of new residential credit customers have a low risk profile, meaning that they are customers with effort rates less than or equal to 50% of their income, as well as a Loan to value ratiowhich means the amount borrowed by the bank against the value of the property, less than or equal to 80%. As explained by the BdP, since 2018 there has been an improvement in the risk profile of borrowers who contract housing loans, and last year there was a clear growth in housing credit agreements granted to clients with a low-risk profile, which increased to 61% in 2023 from 49% in 2022. Average age of buyers is 30 years It was also possible to determine the weighted average maturity of new home loans, which stood at 30.6 years of age during the month of December last year. This means that banks are complying with the recommendations to converge the average maturity for 30 years, however, in the European Union (EU), Portugal is one of the countries with the highest average maturity. On the duration of loans, this is usually tens of years, so it is up to the banks to assess the ability of the customer to continue with the payment of instalments if interest rates increase. In this sense, the rate of effort that banks have to simulate to facilitate access to credit has been reduced from 3% to 1.5% in order to increase interest rates. Keep abreast ECB warns of bad credit risks
Source: Freepik Author: Redaction The formalization of the business is the most awaited moment by a seller, especially if it has been a long process to get here. To achieve a higher success rate, you should be accompanied by a real estate agency to guide you through all the bureaucracies and processes until you reach the formalization of the sale , at which stage you should proceed, with your potential buyer, for the signing of a contract-promise purchase and sale (CPCV), and establish all terms and conditions in a clear and legally binding manner. But before going into this topic, SUPERCASA Notícias gathered a set of information that may have relevance for you, the owner, who, without knowledge about this type of business, needs guidance on how to formalize the sales process. Did you know that there are services provided by the Government and legal entities to simplify the sale of the property? Discover them. 1. Home Ready Service Provided by the Ministry of Justice, the Casa Pronta service helps to formalize and treat all procedures related to the purchase, sale or donation of a house. Thus, through this service, you can handle all the bureaucracies associated with the sale, from the contract to the settlement of stamp duty, whether or not the buyer uses a home loan. 2. Simple House, Safe House Provided by notaries, this is a personalized, qualified service that aims to help with the processes and acts related to the purchase and sale of real estate, helping with the bureaucracy associated with the legal part of the transaction, namely through the signing of the deed, in the application for IMI exemption, registration, licences and other documents. In practice, when you purchase this service, you will have a notary take care of everything for you, facilitating all legal procedures. However, and because it is always simpler to use a real estate agency to mediate the sale, know exactly how the processes develop in this situation. Property reservation This is the first indication given to the owner and/ or real estate agency that is mediating the process that a potential buyer is interested in moving forward with the business. At this stage, there is an interest in booking the property, with an agreement with should be made in writing and that implies the payment of a sum in cash. When formalizing this desire, as soon as the amount requested for the reservation is paid, the owner or the real estate must remove the property from the market. The amount to be paid can eventually be considered in part of the final amount to be paid to the amount that is paid , or debited when the Purchase and Sale Promise Agreement is concluded, however, if the deal does not come to fruition, it is common to have the amount returned to the potential buyer. It is important to note, in this sense, that the reservation contract has a short validity, and that it can go up to only 48 hours. However, if there is an agreement between both parties, its term may be extended. It is extremely important that all these procedures are written in a document safeguarding the rights and duties of both parties. And remember: a reservation contract does not produce the same effects as a purchase and sale Promise Contract . Contract promise purchase and sale It was not mentioned above, but we warn that the reservation of the property is optional , not being one of the mandatory steps to follow. In fact, a potential buyer can immediately jump to the conclusion of the Purchase and Sale Promise Contract, if he so wishes, and there is also a mutual agreement between buyer and seller. The contract-promise purchase and sale is optional, however, when concluded, implies the legal fulfillment of the clauses established, committing the potential buyer to the seller of the property in order to ensure compliance with the duties established until the day of the deed of the property. Before concluding the purchase and sale promise contract, it is important that you define the clauses covered , as they will define the agreements with the potential buyer. Which points should be included in the CPCV? 1. Whether or not there is a housing permit. In situations where this document does not exist, it must be requested from the City Council to be able to proceed with the conclusion of the contract-promise purchase and sale, since it is a mandatory document and essential for the realization of the deed. Thus, if you are still waiting for it, the information should be included in the contract. 2. Amount of the deposit paid by the buyer. The law does not stipulate a value for this purpose, and the sign can correspond to 10% or 20% of the value of the good to be sold, in most cases. However, for the buyer, it is important that this percentage is well reflected in the CPCV, as it will have an impact on the financing requested to the bank for the purchase of the property, and proof of payment must be issued after payment. 3. Date of writing. A limit may be set for the signing of the deed, with the agreement of a margin of security for its realization, in case of unforeseen events. All this should be reflected in the CPCV in order to safeguard the parties involved, as well as the sanctions to be applied in the event of non-compliance. The extension of the term of the deed can also be stipulated if there is a paragraph for this purpose, with the agreement of the parties, and the general rules of the Civil Code apply if sanctions for non-compliance are not stipulated. 4. Annulment of the CPCV if the potential buyer’s home loan is refused. This clause can safeguard both parties in a situation where, if there is no confirmation of financing for the purchase of the property, the deal may fall. Although a buyer must have a pre-approved credit, there may be details that may call into question the final approval of the credit, so to protect the parties, this is a clause that should be included. 5. Possibility of cancellation of the CPCV. This is a clause intended to safeguard the parties in the event of a cancellation of the contract. This is a point that defines the situations in which the cancellation of the contract may arise and the maximum period for this purpose, stipulating sanctions to the party not in compliance. In addition to these paragraphs, a purchase and sale promissory contract shall comprise: • The identification of the buyer and seller - with name, address, marital status, NIF and citizen card number • Property data - with their location, typology, property description and other parts of the property • Maximum period for the realization of the deed • Sale value and payment method • Amount of the signal paid • License to use or build Completion of the sale: deed of the property After the agreements between buyer and seller, through the signature of the CPCV, the next phase is the deed of the property, being met all the conditions for the sale of the house. The deed will legitimize and legalize the contract of sale. And only after signing this document can the buyer receive the key to the dwelling, becoming the current owner. 1st phase of writing: signature of the CPCV At this first moment, the purchase and sale promise contract is signed, in which the transaction is legally formalized. 2nd stage of the deed: mutual contract with mortgage In a second moment, if the buyer has used a home loan, it is necessary to conclude the mutual contract with the mortgage , in which the financing conditions are stipulated. It is only after the conclusion of this contract that the bank can release the amount necessary to pay the missing amount of the seller. The buyer will have at this stage several expenses at his expense, namely transaction taxes (IMT), stamp duty and notary registration expenses, however, your goal has been achieved: he sold his house! It is free of obligations and can decide at this stage what to do with the sale value. And if you want more information about the phase after the sale, we advise you to read What are the assets of the property? Know all
Source: Freepik Author: Redaction Data presented this Thursday, March 14, by the Bank of Portugal (BdP) reveals an increase in the number of foreigners obtaining home loans, now representing more than 10% of the total granted last year. Although foreign borrowers accounted for more of the total number of new home loans, rising from 9.5% in 2022 to 11.7% in 2023, the amount granted was lower, at 1.2 million euros, which represents a decrease of around 6% on the previous year. In total, around 10 billion euros were financed for the purchase of a home, which represents a drop of 24% when compared to the figures for 2022, explained by the sharp rise in interest rates on home loans. As for the nationalities that stand out in obtaining new home loans, they are Brazilians , with 28% of the amount granted, the British , with 9% and the Americans , representing 6%. Keep up to date with all the latest news with SUPERCASA Notícias
Source: Freepik Author: Redaction According to data released by the Insurance and Pension Funds Supervisory Authority (ASF), Portuguese families redeemed more than 1.2 billion euros from their retirement savings plans (PPR) in 2023, at a time when it was possible to channel these funds into home loan costs without penalties. The authoritys data shows that the amount redeemed from PPRs is more than 51% of the amount redeemed in the previous year, with the greatest incidence in classic products, namely non-linked PPR insurance, with guaranteed capital and traditionally more conservative, which totalled almost 982.7 million euros. After classic products, the second largest number of redemptions in 2023 was in linked PPR insurance, which is characterised by higher risk and greater exposure to the financial markets, from which 232.3 million euros were redeemed. This influx, as the ASF explains, may be related to the exceptional period in which retirement savings and education plans (PPR and PPR/E) were allowed to be redeemed without penalty, the aim of which was to mitigate the impact of rising inflation. Keep up to date: Use of PPR will be limited for house purchases by the tax authorities , Bank transfers will be simpler from June and More and more banks are partners of credit intermediaries
Source: Freepik Author: Redaction Families facing financial difficulties can bring forward the redemption of their savings in retirement savings plans (PPR), education savings plans (PPE) and education savings plans (PPR/E) to pay off housing loans. However, only the amount saved up to a certain date is exempt from penalties. The understanding on this issue is outlined in an internal document from the Tax and Customs Authority (AT), signed by the deputy director-general responsible for income tax. This document, based on a government order, aims to clarify doubts related to the exceptional refund regime, especially in relation to the eligibility period for redemptions. With this restriction, it becomes unfeasible for a taxpayer to top up a PPR in order to enjoy IRS tax benefits and then redeem the amount early without incurring penalties. Did you like this topic? Read also: More families opt for mixed rates on home loans
Source: Freepik Author: Redaction According to the National Association of Authorized Credit Intermediaries (ANICA), banks and credit intermediaries are increasingly forming partnerships to capture business , and have even marketed between 70% and 90% of the housing loans of the major national banks. The banks have organized themselves into partnership departments and are now determined to attract intermediaries, because they know that by doing so they will win more business, explains Tiago Vilaça, President of ANICA. These are benefits that average around 1% to 1.5% of the amount financed , when commissions are paid by banks to intermediaries in 90% of cases and, despite the fact that last year the real estate market saw a drop in new home loans, the business of credit intermediaries didnt really feel much of an impact. Leveraging the business of credit intermediaries was the transfer market , which increased exponentially: it has become a concern of the Portuguese to lower their house payment and ensure that the interest rate on the loan is fixed, so that the monthly payment doesnt go up significantly again, concludes the head of the association. Continue reading: More families opt for mixed rates on home loans and Are you buying a house? Negotiate the best credit conditions
Source: Freepik Author: Redaction In 2023, cement consumption on the domestic market totaled 3,904 thousand tons, which corresponds to an increase of 1.8% year-on-year , according to AICCOPN in its housing statistics summary shared in a statement with SUPERCASA Notícias . As far as municipal licensing is concerned, in 2023 there will be a decrease of 8.8% compared to 2022 in the total number of licenses issued for new construction or rehabilitation work on residential buildings. However, in terms of the number of dwellings licensed for new construction, there was a year-on-year increase of +4.9%, to a total of 31,742 dwellings. In December, the stock of mortgage loans amounted to 98,863 million euros, which corresponds to a reduction of -1.4% year-on-year. The implicit interest rate on mortgage loans stood at 4.59% that month, which is an increase of 2.70 percentage points on the same month last year. The median value of housing appraisals for the purposes of bank loans in December rose by 5.3% year-on-year, as a result of variations of 4.3% in apartments and 5.4% in houses. Region in the Spotlight: Porto Metropolitan Area In the Porto Metropolitan Area, the number of dwellings licensed for new construction in 2023 was 8,232, an increase of 14.3% on the 7,205 dwellings licensed the previous year. Of these, 28% are studio or one-bedroom units, 32% are two-bedroom units, 33% are three-bedroom units and 7% are four-bedroom units or higher. As for the bank appraisal value of housing, this region saw a year-on-year change of 3.7% in December. Read also: Portuguese furniture exports rise again , Construction helps to mitigate the effects of inflation
Source: Freepik Author: Redaction The age range from 20 to 30 can be challenging in many ways. Everything is new, the discoveries are endless and the difficulties can be overwhelming at a time when, for many, its the real start of independent adulthood. However, none of this needs to be daunting, not least because being young, especially in your 20s, is a paradise that you will only understand much later in your adult life. To help you with the various financial issues you may face during this period of your life, SUPERCASA Notícias has prepared a short guide to guide you through the small vicissitudes and dilemmas you may face financially. We want you to prepare for the future with a wise mind and an organized wallet , and its essential that you organize your budget so that you also have room for manoeuvre when it comes to small expenses. Divide your salary in proportion to your needs There is a magic rule that can change everything when it comes to managing your salary. The money you receive every month should be divided strategically so that you have financial leeway for the various expenses of the month. This is the 50/30/20 rule, which means that 50% of your salary goes to necessities, 30% to wants and 20% to savings. We know that, at the start of a career, things may not be so linear, but if you manage, month by month, to stick to the assumption that you will take money out for essential expenses and leave aside an amount for savings, you can arrive at the next month with some leeway for unforeseen expenses that arise. Its essential to understand that money isnt just about money (and that you wont be able to engage in the typical you win, you spend attitude). You should take precautions for any eventuality, and even then continue to withdraw a portion to invest in yourself and your personal desires. Do you already know where you want to live? Think about it One of the most important decisions you make at a young age is moving out of your parents house, which undoubtedly means more responsibilities and expenses. If youd like to buy a house, its important that you take this into account in your budget management - and we know how difficult it can be these days to get all the money together. However, the more money you have set aside, the more margin youll have to cover initial expenses, such as the down payment or transaction taxes. Even if you cant pay for a house in full, which is practically impossible these days, youll be less financially burdened in the long term when it comes to bank payments , and youll have more room to resume your saving habits once youve bought the house. Study the financial markets and learn financial literacy Did you know that Portugal is one of the countries in the European Union with the lowest rate of financial literacy? It may seem irrelevant, but the more knowledge you have about this type of issue, the more easily youll be able to guide your life, whether in terms of the economy, budget management or making decisions involving investments, credit agreements or financial and economic concepts that may affect you. Nowadays its very easy to study these topics, and there are even profiles of people who are experts on the subject on social media, which you can follow to keep up with the topics mentioned above. Many years from now, when you look back, youll be thankful that you learned about these subjects, because it will make a difference to the types of investment decisions you make , and also to the returns you can get from them. Be thoughtful about the kind of adventures you get into We know that being a young man in your 20s can be tempting for various adventurous and impulsive situations, especially when youre a young man who earns money and knows exactly where he wants to spend it. You may even have very specific goals, which you should fulfill with all due care, but we advise you to weigh up your investments with this type of spending. Theres a difference, for example, between spending the money you have aside for a dream trip, or between, say, dining out every day in expensive restaurants or spending it on exorbitant nights out. You have to consider that later on you may not be able to do certain things because you havent saved enough money, which is why some extra thought is needed. However, our wish is that you enjoy life, achieve as many goals as possible and become a responsible and focused young adult! SUPERCASA News also recommends: Returning tuition fees: applications for the salary premium have already been opened or Living in shared houses: 5 basic tips and rules
Source: Pexels Author: Redaction This is the reference interest rate applied to the banks mortgage loan . It is often used as a comparative term by those who want to take out a loan and need to compare values between different banks. Although its an important rate, it shouldnt be analysed on its own. It is usually analysed in conjunction with another well-known rate, the Annual Percentage Rate (APR). The nominal annual interest rate (APR) includes the annual charges for the amount of credit taken out and the associated interest. The advantage of an annual rate is that it ends up being more realistic. As it is nominal, it is not influenced by inflation. However, you should always check the real interest rate (simply subtract inflation from the nominal interest rate). The nominal annual interest rate can be distinguished into two types: the gross nominal annual interest rate (GNAR) and the net nominal annual interest rate (NANAR). The gross nominal annual interest rate (GANAR) refers to the amount of interest with the tax still to be deducted, i.e. the tax will still be withheld at source by the bank, and the net nominal annual interest rate (NANAR) refers to the amount of interest you will receive in your account, with the tax withheld (28%). In short, if youre going to take out a mortgage, you should take the APR into account, but you shouldnt rely on it alone: sometimes it can be low, but its likely that the bank will require you to take out other financial products. You should therefore take the APR as a reference, but be guided by the APR. Other concepts to get to know: What are Liberating Rates? Learn, Tangible and Intangible Assets: what are they? and What is a bank moratorium? Find out more
Source: Freepik Author: Redaction The three-month deadline for taxpayers to reinvest gains from the sale of property in the amortisation of the loan for the house they live in, without incurring taxation, may be extended until March 2025 , according to the Tax Authority. This opportunity for exemption from IRS taxation for profits from the sale of property, such as building plots or homes, is provided for in the Mais Habitação legislation. To qualify for this exemption, the sale of the land or homes must take place between 1 January 2022 and 31 December 2024 , and the proceeds of the sale must be reinvested in the total or partial repayment of the taxpayers own permanent housing loan or that of one of their descendants, within three months of the date of sale. In a communication to the services and in order to ensure the consistent application of the new rules established by Mais Habitação regarding the taxation of capital gains, the Tax and Customs Authority (AT) clarifies that the amortisation of any loan taken out for the acquisition of the property and the application of the realisation value (possibly deducted from that loan) can, at the most, be carried out until March 2025 . This understanding stems from the fact that the loan must be amortised within three months of the sale , and the capital gains tax exclusion regime applies to sales made between the beginning of 2022 and the end of 2024. In addition, the AT clarifies that the exclusion from capital gains taxation applies even when the taxpayer reinvests only part of the amount obtained from the sale in the amortisation of the loan , either because that is their intention or because the credit is less than the amount generated by the transaction. In such cases, the exclusion from taxation only applies to the proportional part of the profits corresponding to the amount reinvested. This regime applies regardless of whether the sale of one or several plots of land or residences is involved, as the realisation value of a property sold (or several) can be distributed to amortise housing loans intended for the permanent residence of several eligible beneficiaries. This means that, in a family where more than one person has a loan for their own permanent home, the money obtained from the sale of land and homes can be used to amortise several loans , as the scheme allows for the amortisation of any housing loan intended for own permanent home. The Tax Authority has previously clarified that, in cases where the sale of these types of property took place before Mais Habitação came into force (October 2023) and capital gains tax has already been paid, taxpayers can request a refund of the tax paid by submitting a replacement declaration for IRS Model 3 . This request can be made within two years of the end of the legal deadline for submitting the tax return, or within the same deadline for submitting an administrative claim, as provided for in the IRS code, generally until the end of June 2025. Also read: Selling on Real Estate Portals: 3 essential reasons , More families opt for mixed rates on home loans and Public tenders for housing are not attracting candidates