Portugal Property

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Portugal Property: Renovation & Restoration

Date: 30/10/2008

Overview

Many old country or village homes in Portugal are in need of restoration, renovation or modernisation. Before buying a property requiring total restoration or modernisation you should consider the alternatives, as it isn’t for the faint-hearted. Spending extra on a purchase may represent better value for money than spending the money on building work. It’s often cheaper to buy a restored or partly restored property rather than a ruin in need of total restoration, unless you’re planning to do most of the work yourself. The price of most restored properties doesn’t reflect the cost and amount of work that went into them and many people who have restored a ‘ruin’ would never do it again and advise others against it. In general the Portuguese don’t care for old homes and much prefer modern apartments and villas with all mod cons.

Inspections

It’s vital to check a property for any obvious faults, particularly an old property. Most importantly a building must have sound walls, without which it’s cheaper to erect a new building! Almost any other problem can be fixed or overcome (at a price). A sound roof that doesn’t leak is desirable, as ensuring that a building is waterproof is the most important priority if funds are scarce. Don’t believe a vendor or agent who tells you that a roof or anything else can be repaired or patched up, but obtain expert advice from a local builder. Sound roof timbers are also important, as they can be expensive to replace. Old buildings often need a damp-proof course (condensation and damp can be a problem), timber treatment, new windows and doors, a new roof or extensive repairs, insulation, a modern kitchen and bathroom, re-wiring and central heating. In addition many older properties have iron or steel plumbing pipes, which are prone to leaks and corrosion and expensive to replace.

Mains water, sewerage, electricity, gas and telephones are still rare in many country areas, where generators, solar energy and wind power are fairly common. If a house doesn’t have electricity or mains water, it’s important to check the cost of extending these services to it, which can be expensive. Many rural properties get their water from a spring or well, which is usually fine, but you should check the reliability of the water supply, as wells can and do run dry! If you’re planning to buy a waterside property, you should also check the frequency of floods. If they’re commonplace, you should ensure that a building has been designed with floods in mind, e.g. with electrical installations above flood level and solid tiled floors.

Planning Permission & Building Permits

If modernisation of an old building involves making external alterations, such as building an extension or installing larger windows or new doorways, you will need planning permission and a building licence (licença de obras) from your local town hall. Even relatively minor changes may need planning permission and in many areas buildings must remain as single-floor dwellings. If you plan to do major restoration or building work, you should ensure that a conditional clause is included in the contract stating that the purchase is dependent on obtaining planning and building permission. Never start any building work before you have official permission.

DIY or Builders?

One of the first decisions you need to make regarding restoration or modernisation is whether to do all or most of the work yourself or have it done by professional builders or local artisans. A working knowledge of Portuguese is essential for DIY, especially the words associated with building materials and measurements (renovating a house in Portugal will also greatly improve your ability to swear in Portuguese!). When restoring a period property it’s imperative to have a sensitive approach to restoration. You shouldn’t tackle jobs yourself or with friends unless you’re sure you’re doing them right. In general you should aim to retain as many of a property’s original features as possible and stick to local building materials such as wood, stone and tiles, reflecting the style of the property. When renovations and ‘improvements’ have been botched, there’s often little that can be done except to start again from scratch. It’s important not to over-modernise an old property so that much of its natural rustic charm and attraction is lost. Bear in mind that even if you intend to do most of the work yourself, you will still need to hire local artisans for certain jobs.

Finding a Builder

When looking for a builder it’s best to obtain recommendations from local people you can trust, e.g. an estate agent, notário, architect, neighbours and friends (although estate agents and other professionals aren’t always the best people to ask, as they may receive commissions). It’s also wise to obtain references from previous customers. It may be better to use a local building consortium or contractor rather than a number of independent tradesmen, particularly if you won’t be around to supervise them (although it will cost you a bit more). On the other hand, if you supervise it ‘yourself’ using local hand-picked craftsmen you can save money and learn a great deal into the bargain.

Supervision

If you aren’t on the spot and able to supervise work, you should hire a ‘clerk of works’ such as an architect or structural engineer to oversee a large job, otherwise it could drag on for months (or years) or be left half-finished. This will add around 5 or 10 per cent to the total bill, but it’s usually worth every euro. Be extremely careful whom you employ if you have work done in your absence and ensure that your instructions are accurate in every detail. Make certain that you understand exactly what has been agreed and if necessary get it in writing (with drawings). It isn’t unusual for foreign owners to receive huge bills for work done in their absence, which shouldn’t have been done at all! If you don’t speak Portuguese it’s even more important to employ someone to oversee building works. Progressing on sign language and a few words of Portuguese is a recipe for disaster!

Quotations

Before buying a home in Portugal for restoration or modernisation, it’s essential to get an accurate estimate of the work and costs involved. You should obtain written estimates (estimativas) or quotations (orçamentos) from at least two builders before employing anyone. For estimates to be accurate, you must detail exactly the work required, e.g. for electrical work this would include the number of points and switches, and the quality of materials to be used. If you have only a vague idea of what you want, you will receive a vague and unreliable estimate. Make sure that an estimate includes everything you want done and that you fully understand it (if you don’t, get it translated). You should fix a date for the start and completion of work, and if you can get a builder to agree to it, include a penalty for failing to finish on time. After signing a contract it’s usual to pay a deposit, the amount of which depends on the size and cost of a job.

Cost

All building work such as electrical work, masonry and plumbing is calculated by the square metre or metre. The cost of restoration depends on the type of work involved, the quality of materials used and the region. As a rough guide you should expect the cost of totally renovating an old ‘habitable’ building to be at least equal to its purchase price and possibly two to three times as much. How much you spend on restoring a property will depend on your purpose and the depth of your pockets. If you’re restoring a property as an investment it’s easy to spend more than you could ever hope to recoup when you sell it. On the other hand, if you’re restoring a property as a holiday or permanent home there’s no limit to what you can do and how much money you can spend. Keep an eye on your budget (which will inevitably be plus or minus 25 to 50 per cent – usually plus!) and don’t be in too much of a hurry. Some people take many years to restore a holiday home, particularly when they’re doing most of the work themselves. It isn’t unusual for buyers to embark on a grandiose renovation scheme, only to run out of money before it’s completed and be forced to sell at a huge loss. Always bear in mind that dream ruins can easily become ruined dreams!

Swimming Pools

It’s common for foreign buyers to install a swimming pool at a home in Portugal, which if you’re letting, will greatly increase your rental prospects and the rent you can charge. Many self-catering holiday companies won’t take on properties without a pool. There are many swimming pool installation companies in Portugal or you can buy and install one yourself. If you’re having a new home built in Portugal, you should employ a specialist pool company (who will provide a guarantee) to install it and not a general builder.

Above ground pools are the cheapest, but they’re unsightly and are best only as a stop-gap or for those who really cannot afford anything better. Expect to pay around €3,000 for an 8 x 4 metre above ground pool. A better option is a liner pool, which can be installed by anyone with basic DIY skills. A liner pool measuring 8 x 4 metres costs around €12,500 fully installed, around the same price as a conventional pool. A saline water option costs a bit more, but gives a better quality of water and offers lower maintenance costs. A concrete fully-tiled pool of 8 x 4 metres costs from €13,000 to €20,000 installed, including filtration and heating, and can be almost any shape. You will need planning permission to install a pool and should apply a few months in advance. Pools require regular maintenance and cleaning. If you have a holiday home in Portugal or let a property, you will need to employ someone to maintain your pool (you may be able to get a local family to look after it in return for being able to use it). Source: Propertyindex

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