All Forum Posts by: Rui Dias Costa

@Thomas Youngman

Welcome!

Yes, it isn’t easy to find a good LTR because there is little offer.

On the other side, when you put something to rent in good condition you get lots of interest. From what I can tell an B area turn over period (with rent increase!) takes 1-2 weeks.

I was told by a previous landlord of mine that her places generate 4-5 solid prospective tenants per week.

This will depend on the market and type of house.

Try looking 1h - 1h30 out of Lisbon. You will get the benefits of a big city without the hassle.

Good luck!

Regards,

Rui

Hi,

I have no real experience with this subject but in my research I found a site that I feel it helps explaining how things work. In the spirit of this thread I think two articles can be useful:

1) Article explaining changes of the 2019 rent law (inclined elderly protection) 

-- http://portal.uniplaces.com/pt-pt/o-que-muda-este-...

---- From what I understand the special protection (including elderly and people with disability) only applies to contracts older than 1990. Tenants leasing for more than 15 years gain the right not to see their lease terminated by the landlord.

----- Before my first lease contact I will read the law and ask an attorney of RE for their experience in this subject, just to be sure.

----- A quote from the article that explains this:

"Proteção especial

Os arrendatários idosos e portadores de deficiência terão uma proteção especial. Deste modo, as alterações dão uma proteção extra aos inquilinos com mais de 65 anos ou deficiência igual ou superior a 60% que tenham celebrado contratos antes de 1990.

Esta proteção aplica-se nos casos em que houve falta de informação ou de resposta às cartas de atualização das rendas, quando entrou em vigor o Novo Regulamento do Arrendamento Urbano (NRAU), e que viram o seu contrato a passar para cinco anos, correndo agora o risco de serem despejados.

Se os inquilinos viverem há mais de 15 anos na casa – o que poderá ser comprovado por atestado da junta de freguesia – o contrato só pode chegar ao fim se a casa for demolida ou sofrer uma obra profunda que obrigue à saída de quem lá vive.

Há ainda outra medida que visa proteger os idosos e deficientes, nomeadamente aqueles que assinaram o contrato de arrendamento entre 1990 e 1999. Estes não vão poder ser despejados desde que vivam há mais de 20 anos no imóvel. Também aqui o contrato só pode chegar ao fim se a casa sofrer obras profundas."

2) Article explaining how to do an eviction 

-- http://portal.uniplaces.com/pt-pt/despejo-de-inqui...

Hope it will be useful.

Regards,

Rui

Hi guys,

I would also be interested in that idea.

Regards,

Rui

Hi Thomas,

For more data about regarding demographics and such: https://www.pordata.pt/en/Home . I believe it to be a reliable source.

Regarding medium rental income per unit. I couldn't say has you framed in a very generic way. It would depend on location and "category" (a C level vs a B level for instance). Outside Lisbon/Oporto/Coimbra (very hot markets) probably 570€/month on a 3 bedroom condo would be a B level medium rent income.

As always, this is theory only, I have no real experience. Take it with a grain of salt.

Kind regards, Rui

Hi,

Definitely interested in learning more and exchanging experiences about the Portuguese RE market.

Regards,

Rui

 Hi Nuno,

Please don't apologise, perhaps I come along a little hard but I was only trying to give some input in a technical matter. I have no experience in REI yet, just theory and what I am saying may not apply in reality. I just read the tax code and I am not a CPA.

That said, I think we are talking about the same thing from two different perspectives. I do believe we are both correct. I was talking from an LLC perspective and I believe you are coming from as a personal owner of the property. From what I can tell, an LLC is taxed at 17% to 25% of the profit and a single person owner is taxes at 28% of rents collected (with the ability to charge back some expenses).

I found this article in UniPlaces helpful - http://portal.uniplaces.com/pt-pt/imposto-sobre-rendas/ .

I still have a lot to understand about the REI and perhaps I am missing something.

Best of luck,

Rui

 Hi,

I am far from being a professional in RE. Only learned some of RE theory and I am on a very the basics level. I am also not a CPA. 

That said, has a business manager I can say that Portugal's profits tax level is not 33%. LLC's have their profit tax level in two brackets - 17% and 25%. I do believe we have a very high tax burden, specially because of many small taxes and fees associated with any business activity and with having employees.

From what I can tell, a efficiently run and profitable LLC, on a service oriented business, runs at an efective tax level (all taxes and social security obligations considered) around 14-15%.

I wonder if it is the same on REI oriented business. Hopefully, one day I might be able to let you know! ;)

Kind regards,

Rui

Hello Mary,

I don't have much real experience just what I studied and some nuggets from friends that invest locally. 

I expect to be closing in my first property in the next two weeks. I have (or hope I have) everything lined up: money, paperwork, taxes, etc. I am still trying to grab some last minute non-monetary concessions (that I believe are fair) but either way I intend to honour the agreement of sale.

Honestly, I am not sure how much help I can be but feel free to ask.

Kind Regards,

Rui

Thank you for sharing your "systems" and follow-up on their implementation. 

Great value from Pedro Tavares and other contributors!

Regards,

Rui

Episode 138 with Michael Rogers. Probably not the one mentioned earlier but I really liked it for this topic of self storage.

Kind Regards,

Rui