Those who wish to invest in real estate in Lisbon are always asking themselves the question: is it more profitable to sell or rent out a property? Come and find out the answer to one of the most common real estate investment questions.
The property market is constantly growing and Lisbon is a great example of this. After all, this is a highly appealing city for tourists with an excellent quality of life. In fact, Lisbon has become one of the most acclaimed metropolises in the country and is therefore in great demand.
Whoever owns a property in this region sees this as a good opportunity to make money from the property they don't use. This thought, however, is accompanied by one of the most pertinent questions. Which will be more profitable: sell or rent?
In the face of a growing, dynamic and open real estate market, one thing is certain: A closed and unused property is undoubtedly the biggest mistake to make as the owner is losing out on an excellent source of income. Between renting out and selling, the issue is already becoming more complex, and both options offer advantages and benefits that provide a profitable business.
Today we will explain the advantages of renting out and selling so you can make a more informed decision.
Renting out a property in Lisbon is a very cost effective option. Nowadays, with the scarce supply of rental accommodation and the rise in rent prices, the demand for rental property is increasing.
By entering the Lisbon rental market you will be taking advantage of a fabulous business opportunity and there are numerous reasons why you should not hesitate to do so.
Firstly, the possibility of renting out your property for a high price is currently viable. Intense demand and low supply make the value of real estate very high. If, on the other hand, you want to charge lower rent, you can take advantage of some of the government incentives for landlords who charge affordable rent, thus saving you money when paying the necessary fees and taxes.
In addition, a rental income is a guarantee for the landlords to receive an extra fixed and monthly payment that can help meet their household expenses.
Finally, if you want to keep your assets for emotional reasons, this will also be a way to ensure that you keep your property without leaving it unoccupied. Having a rented house may be the best way to ensure your home is cared for and prevent it from deterioration. This way, your property will be better taken care of and later, if you decide to do so, you may even move back in or give it to one of your children.
Selling a house in Lisbon is also an extremely profitable business, which shows a positive growth trend and, for now, it has no tendency to slow down.
At a time when the country itself is experiencing economic growth and where people have greater purchasing power - notably due to higher number of jobs and lower unemployment rates - home ownership has again shown an upward trend.
Many people in the capital are looking for the ideal home to buy and, once again, this intense demand, together with the low supply, has contributed to the increase in property values in the Lisbon region. This increase in the value of real estate makes the sale of a home very profitable for the owner, especially if the house is well located and in good condition.
In addition, Lisbon has been under the watchful eye of foreign investors who are eligible for the Golden Visa and have invested heavily in Portuguese real estate.
Along with this, easier access to bank loans has also helped selling properties in the Lisbon region easier for homeowners. This has helped generate beneficial profits for homeowners at the time of sale. The ease of access to loans and mortgages, as well as the drop in interest rates, makes the whole process of selling a home in Lisbon faster and simpler.
As we can see, both selling and renting out a property in Lisbon can bring numerous advantages to its owner. If you have questions about which is the best decision for your particular case, or if you want a competent broker with proven expertise in the area, it is best to contact the Engel & Völkers Lisbon office.
Knowing the region and industry better than anyone, and with proven international experience, this is the agency with the best profile to manage the rental or sale of a home in the Lisbon region.