According to a report by idelaista/news, the gross profitability of the purchase of a house and subsequent lease was 5.7% for the first trimester of 2022, a value 0.2 percentage points (p.p) lower than that calculated for the same period in 2021 (5.9 %). Today, the return on housing is also lower by 1.0 p.p. compared to that observed in the second quarter of 2020, when it reached 6.7%.
Most profitable areas to buy
Analysing the data by district capital, Santarém is where it is more profitable to purchase a house to rent, with a return of around 7.9%. Then come the cities of Leiria (6.5%), Coimbra (5.6%), Braga (5.5%), Viseu (5.3%), Setúbal (5.3%), Viana do Castelo (5.3%) and Funchal (5.2%).
Butying to let is a waste of time. After pating legal fees transfer fees etc you are already down. Then you need to find a reliable tenant who actually pays the rent and does not trash the joint. Then you probably have to pay over the top estate agent fees, maintenance if something goes wrong .... list goes on. Just buy some gold bullion better investment lol or esc online lol
By mooseman from Alentejo on 08 Jul 2022, 08:28
Buying to let in Portugal is not at all attractive. The tax on the rental income is HUGE. If you dont do the rental agreement "legally" (ie make it known via Financas) then if you need to evict the tenant you have a heck of a job to remove them. If the tenant breaks things or steals things you have little or no comeback because everything is in the favour of the tenant and not the owner.
By L from Other on 08 Jul 2022, 13:31
From a long term investment perspective, the rate of return is still better than what the banks pays, plus you have an asset that will appreciate over time.
By Akanthon from Other on 11 Jul 2022, 04:49