Nancy: In preparing for eventual residency, I've seen almost every YT video on PT. None ever mentioned this - so a big thanks. Retired at 67 soon and not asset-rich, I'll stop looking at possible apartments to buy (150K @ 8 years is ~$1800/mo). However, I might con one of my working kids to invest and just pay them rent! Thanks again.
A few additional notes: (1) Our bank offered us a mortgage that would cover us until we were 75; (2) however, we would also both be required to buy life insurance for the bank’s benefit; (3) we would also be required to buy insurance on the building for the bank’s benefit, and for an apartment in a larger building, the insurance covers the apartment as well as the percentage of the building that the apartment occupies. We were quoted an extremely low rate - only 1% above euribor, which is currently negative - BUT this was a floating rate, which is apparently the most common way of financing by far in Portugal. The only thing that our bank could offer that was close to a fixed rate was essentially a 10/1 ARM, and the base rate was a few percent higher. Bottom line: with the insurances (for middle aged folks) and fees included, the cheapest floating rate mortgage was equivalent to about 4-4.5% interest, and the 10/1 ARM analog started out at an equivalent to about 6-6.5% interest.
Appreciate how thoroughly and clearly you presented this information. I wish that everyone considering moving to and buying in Portugal would read this, as it addresses the most important and basic considerations. Thank you, yet again, for your work!
Nancy: In preparing for eventual residency, I've seen almost every YT video on PT. None ever mentioned this - so a big thanks. Retired at 67 soon and not asset-rich, I'll stop looking at possible apartments to buy (150K @ 8 years is ~$1800/mo). However, I might con one of my working kids to invest and just pay them rent! Thanks again.
A few additional notes: (1) Our bank offered us a mortgage that would cover us until we were 75; (2) however, we would also both be required to buy life insurance for the bank’s benefit; (3) we would also be required to buy insurance on the building for the bank’s benefit, and for an apartment in a larger building, the insurance covers the apartment as well as the percentage of the building that the apartment occupies. We were quoted an extremely low rate - only 1% above euribor, which is currently negative - BUT this was a floating rate, which is apparently the most common way of financing by far in Portugal. The only thing that our bank could offer that was close to a fixed rate was essentially a 10/1 ARM, and the base rate was a few percent higher. Bottom line: with the insurances (for middle aged folks) and fees included, the cheapest floating rate mortgage was equivalent to about 4-4.5% interest, and the 10/1 ARM analog started out at an equivalent to about 6-6.5% interest.
It’s actually 75 in Portugal. At least by the banks I’ve contacted so far.
Appreciate how thoroughly and clearly you presented this information. I wish that everyone considering moving to and buying in Portugal would read this, as it addresses the most important and basic considerations. Thank you, yet again, for your work!