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Discussion Starter · #1 ·
Hi guys,

I've been scouring your forums for some ideas, but to no avail.

My Dad (66yrs) has lived in Algarve for about 14 years, (is now resident etc) has 5 bed house (no mortgage) and lives alone. Has wanted to come back to the UK for about the last 5, and house has been on the market this long :(

Increasingly bad health, and now being registered disabled he is really struggling to manage, and has this week fallen and broken a hip, and had a total hip replacement.

He desperatly needs to come back to the UK where his family are, but the house has been on t he market for 5 years (and dropped considerably in price) but it wont sell.

I live in a 2 bed house with hubby and son, so he cant come and live with us, and no family has a house big enough to accomodate him forever...

I cant imagine anyone will reply, because I'm all out of ideas also, but thought I'd post and see if anyone could think of anything?

Thanks

Stressed Daughter!! xx:eek:
 

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Sorry to hear storey but the only way to sell is to reduce the property to a price where it must sell or create interest.

Same time it's important to make the best of the property features, repair or make good any obvious defects that might be putting potential buyers off, and really look at the agents who the properties with, probably a time for a change as any property on an agents books for 5 years won't be getting the attention it should, ask yourself is it with agents or internet advertising sites that reach a possible buyer?

In current property market you need a spread of agents to cover potential markets i.e. Portugal, UK, Holland, Germany, Scandinavia, Russia & China not as far fetched as it sounds for the Algarve

Don't sign exclusive contracts as it stops you (or rather costs you) selling privately or with other agents and from 1st December 2013 he must have a Energy Performance Certificate (same as UK) to register property for sale with a registered Portuguese Estate Agent
 

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Discussion Starter · #3 ·
Ahh thats great thanks, I'll check out some different estate agents, and what sort of contract he's got!

Thanks again :):) Xx
 

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You should check T & C of any existing contracts, Portuguese Estate agents contracts should offer exclusive & non exclusive, they also have automatic renewal options that can be opted out off, also conditions on how notification of price changes and cancellation are made, it's as well to be sure if altering or dismissing an agent that they don't have any right to commission when you make the sale:)
 

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Where about is the property? And have you thought about renting out the property on long term rental until it can sell,I am sure there must be agents in Portugal that deal in the rental market and can manage it until sold.God bless and I hope it all turns out okay for your father in the end.
 

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Couple of issues to consider for a long term rent, the issue for most people returning to UK is capital they need to sell here to have the funds to buy in UK so rental is a short term fix.

The issues to consider for rental, it is becoming increasingly problematical if you don't do it legally and have correct AL Licence & declare income equally for long term lease rental

a) short term holiday rental tax is appox 5% of allowed profit (under Simplified Regime your allowed 20% of turnover as profit so if you "earnt" 10,000€ your profit is 2,000€ your tax is 100€) + usual expenses of advertising, upkeep, cleaning a local person to manage etc

b) long term lease tax is appox 28% (under Simplified Regime your allowed 20% of turnover as profit so if you "earnt" 10,000€ your profit is 2,000€ your tax is 560€) but your costs might be lower

There is one other major consideration, although making any substantial profit on the sale of a Primary Residence is currently unlikely, CGT must be considered if any sort of a profit is made, as your father is currently a Resident then he would qualify for CGT relief and at a lower %
Residents can reinvest profit from the sale of a Primary home in Portugal within EU or EEA + any profit is calculated @ 28% of 50% of profit , if reivested no CGT to pay

Non Residents cannot get CGT relief on the sale of a home in Portugal + they are charged CGT @ 28% on 100% of any profit

In both cases a Tax return must be made for the year of sale, non return immediatley creates fines and further inqueries
 

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There are all kinds of options that could be explored by an innovative real estate consultancy. Dependent on the value of the property it may fit the Golden Visa initiative for foreign investors or it may be possible to do a vendor financed mortgage for a part of the principal which enables someone to buy that wouldn't otherwise.

Not many realtors working at this level but a few stand out head and shoulders if you hunt around.

The age, condition and location of the property is also a factor so its not easy to give precise details or contacts without knowing more
 
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