SHOCKING Madeira Island Real Estate Closing Costs & Fees | Portugal
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- Опубликовано: 9 июл 2024
- Thinking about buying a property in Portugal? In this video, we share our experience with closing costs and the buying process in Madeira Island. From unexpected fees to necessary paperwork, we'll give you a realistic look at what to expect when buying real estate in Portugal. Watch before you make your move!
00:00 - Intro
00:51 - Shocking: Buying Madeira, Portugal real estate
01:22 - Shock 1: Portugal property/real estate search
03:26 - Shock 2: Madeira/Portugal property/real estate viewing
05:06 - Shock 3: Portugal real estate taxes & fees
06:25 - Shock 4: Madeira Island real estate purchase day
09:06 - Shock 5: Portugal real estate purchase "after party"
10:12 - Our Funchal, Madeira, Portugal real estate purchase cost
12:08 - Our individual closing costs for Madeira Island, Portugal real estate purchase
14:12 - Total cost for our Madeira, Portugal real estate property purchase
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All the best! D & M 🌎❤️
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#MadeiraPropertyPurchase #PortugalRealEstate #ClosingCosts
This is VERY HELPFUL!! My bride and I are moving to northern Portugal in April with the intention of buying our own home within a year. You guys are doing a great job of sharing useful and entertaining information for folks just like us!
Hello Carl! Wow very exciting! Northern Portugal looks absolutely beautiful and is definitely on our list. 😀 This country has so much to offer! All the best to you both and your move. Thank you for watching and for your kind words! Cheers! M&D
The way you layout these videos is EXCELLENT!
Hello there! Thank you ! We appreciate the positive feedback! If you haven’t already, we would love if you would subscribe and follow along! Cheers! M&D
That’s how it’s done in Europe, in Turkey you also have to bring a certified translator.
Neat! We love learning the different ways of the world. We certainly are not implying that N. America is better - it was just different (and fun) for us. All the best! D & M
As a Broker in the US, I absolutely LOVE the idea of an "after party" with all parties!!! What a great idea!!
Hello! It is a fabulous idea and really it illustrates their how they connect and make everyone feel like family. It’s a lot of fun! Thanks for watching and Happy New Year! 🥂 M&D
Very interesting. For comparison (this isn't a competition but to show some variance):
I paid the taxes the same day as the mortgage was signed. I did get a mortgage. From your video it appears you paid cash. Everything happened in the same meeting.
My experience was somewhat similar. One big room, but it was me, my realtor, the builder (new house), a translator for me, the bank rep and the notary. We all met at the notary's office. There was no afterparty.
The biggest differences: I signed my name twice on a Word document for a 700,000 euro mortgage. In the US I would spend about two hours signing document after document. The second "shock" was the bank wrote all the checks themselves out of my account and passed them around to recipients. I didn't even touch the checks. Whole process took about an hour.
Home buying was a little different. It is apparently common to keep homes listed up to two years after sale. My house, bought in November and paid for in March, is still listed on at least two realty sites. This doesn't bother me, but most of the homes I wanted to see were already sold but still listed. My realtor was good; either she had the key or the builder was there and waiting when we arrived. I encountered no owners, though I did look at mostly new properties.
One point to note: in Madeira the seller pays the realtor fees.
Thanks for the video! You'll have to invite me over for the New Year's fireworks in 2024.
That is excellent info and we really liked reading that comparison - thanks very much for sharing that! Be sure to Track Us Down! for the 2024 fireworks! 😉
Thanks for taking the time to explain the purchase details. Now, we all have a better ideia of the process.
Muito obrigada!
De nada! Glad you found it useful information! Cheers!
As promised, we break down ALL the FEES and COSTS associated with buying real estate here in Madeira, Portugal - from our experience. Do you find it shocking? 😱😉
The money was very well spent!! I enjoyed the video, thank you!!!
Thanks a lot! So helpful!
@@gabriellarosa5015 Thank you! We appreciate that feedback! Cheers, D & M
@@mattchannel7075 Great to hear! Thanks!
Yes, very much shocking especially when the buyers have to pay for the fees upfront and the transaction fee is quite a lot.
Great detailed information, it is "eye opener" knowing the process, fees, and taxes involved in the purchase of a property there. Now we know what to expect when is our time to do that. As always, thanks so much for sharing this information. Your experience is helping me and my husband to prepare financial and mentally for our next move. Blessings to you!
Thank you for that! Yes it certainly was a neat but different experience for us. We are glad you find some useful information on our channel. That's great that you are researching and making plans, so smart. All the very best to you both! D & M
Great video! Congrats on the new place and fantastic view. 😎 I appreciate the details as it makes the process less scary going forward.
Thank you very much! We really appreciate the feedback. Cheers, D & M
Nice video.
When you talk I feel that you are sincerely in your words. I like this “cultural encounter”.
As a brazilian I would never be shocked with knowing the seller or having a leisure time with him after the business.
I don’t know Madeira but it’s in my target. Planning to visit in my next vacation in jan 25. Trying to convince my wife to consider Madeira as an option for living after retirement (4years from now).
Thanks for your videos and tips.
Hello Ruben! Thank you for watching and for your kind comment. We were shocked as it’s not done like that where we are from - you would never meet or know who the seller is and certainly not spend time with them or the agents/ lawyers after the transaction. It was an absolute pleasure though and super interesting. 😊Yes please do consider Madeira as a retirement destination. A holiday here for the two of you would be amazing. Thanks for following along! Cheers! M&D
Thx so much for sharing and really interesting as always. Much appreciated!
Glad you enjoyed it!
Wow - that is a lot of info to digest. Great content!!
Hello! Thank you so much for watching and commenting! Glad you enjoyed the content! Cheers! M&D
Thank you, for breaking it down great information 👍🌍
You are welcome!
Excellent information. Thank you for helping us prep for what's to come.
Our pleasure! Glad it was helpful! 🙂
Awesome video. Thanks for sharing.
Hello there! Thank you for the comment and for watching!! Cheers! M&D
Thanks Doug & Monique, great information here & always from you two!
Thanks Dave - we sure appreciate the feedback! All the best to you both!
Great video. Very helpful 👍
Glad you thought so! Thanks! D & M
Brilliant video very useful information thanks 😊
Thanks for watching us! We're having some fun making these 😄
D & M
Really interesting and informative, thanks Guys. Congratulations on your new home. 😊🏡
Thank you very much!!
Very informative, thanks!
Great to hear! Thanks for that feedback and all the best! D & M
Thx. Nice of you to inform us about this.
Congratulation with your new Home.
Greetings.
Thomas from Denmark.
Thank you so much Thomas!!
Thank you for the fun and information video. I think you have done an awesome job moving to Madeira, Portugal 🇵🇹 and buying beautiful home there. 👏🙏❤️
Thanks so much! Going along, we never knew if we were on the right path etc., but we sure feel it has worked out. We are loving it! Cheers! Doug & Monique
Wonderful process and job well done. This experience will surely stay with you forever. Love the content.👏🏽👏🏽
Thank you so much 🤗
Great, very detailed...very concise
Thank you! 😀
Sounds like a wonderful process. Very personal.
Hello! Thank you for watching and commenting. It was a very personal process and we enjoyed it! Cheers! M&D
Thank you , it is so informative.
Hello there! You are very welcome and we are happy you found it informative. Thanks for watching! Cheers! M&D
Congrats!
Thanks for sharing.Looking to retire early in
Portugal in 4 years. Considering the golden Visa.
Hello! Thank you for watching and supporting our channel! Congratulations on your plan to retire early and considering 🇵🇹! Golden visa is an excellent option. Cheers! M&D
Sounds like Madeirans are a lot more trusting of each other than we are in the US. And since you're on an island, everyone is generally friendly, so an after signing party?... why not? And the purchase price with everything is just crazy. And closing costs on our last home (horse ranch in NM) in the US was close to $30K, so yours is much more reasonable.
They sure are. It's unbelievable - from a N. American standard, how nice they are to each other, and honest. It feels so good, like something you want to be a part of. We agree, the closing costs and processes are all relative to one's experience. We enjoyed it all very much. Thanks for that excellent feedback. Cheers!
Thorough and concise! Thank you so much for making this video available to folks imagining a retirement abroad.
Our pleasure! Thanks for that feedback! All the best, Monique & Doug
Thank you so much for your willingness to share these expenses. I’ve been trying to research this and have found vague references to the transfer fees and closing cost… but wasn’t really sure what they might equate to. I just kept seeing other Americans saying they were high or shocked by the cost. Also, no one had told me the seller shows the house. This really helps me… as I consider making a move and a purchasing a property.
You are very welcome! We know what that's like. We also found it so vague when trying to pull together cohesive, straight-forward info on things like the D7 visa, flying with a dog, etc, etc. We know there are many ways of buying / selling a home worldwide - we just found this different for us, so wanted to share in a fun way. Glad it helped! Cheers, Doug & Monique.
I'm shocked by the low annual property tax and insurance on a house of that price.
Hello DavesWorld! Yes we were shocked as well at the property tax and insurance cost. It’s a huge win for the budget! Thanks for watching and commenting. Cheers! M&D
That was annual property tax???
Outstanding Video! JP
Thanks so much!
Thank you for this video, It has open up my mind and now my plans have changed. Blessings to you guys
Hello Simeon! Thank you for the comment and we are happy to hear our content resonated with you! Cheers! M&D
Thank you so much for sharing details info as always. The cost seems pretty good. We are drawn toward buying a property there.
Hi Organic Freedom! Thanks for the comment! Cheers! M&D
I loved the video! Planning to retire in Portugal. Thank you for sharing
Hello Zizi! Thanks for watching and commenting! Good luck 🍀! Cheers! M&D
This is amazing!! As with most of the other viewers, I've struggled to find a video like this one that properly discusses the process and finances. Thank you & congratulations! I know you guys will absolutely love your time spent at Vila Doce!
Did you pay for the property up front or are you mortgaging?
Glad it was helpful! Thanks so much for watching and the feedback - much appreciated. We paid in full for our little 'vila' so no more mortgage for us! Cheers! D & M
Congrats! Hope to see u in person someday when I move there from New Mexico USA. Keep well....be happy.
Thanks! Sounds great and all the best to you!
You Guys are fantastic,. Your videos are inspiring and thinking of early retirement. Thanks a lot 👍👍👍
Thank you very much of that feedback! Truly nice to hear that others find value in some of our videos. We do hope to inspire others! Cheers, D & M
Thank you greatly appreciated
You are very welcome! 🙂
Thanks for ACTUALLY explaining things. So many times, things are just glossed over.
We sure found that ourselves too when we were looking for information for our big move. Thanks for the great feedback and all the best! D & M
Thank you both for sharing this important information about buying a home in Beautiful Portugal ! Enjoy your home in Madeira. God willing, we hope also to eventually purchase a home in Madeira or Lisbon. Thanks again.
Hello harry! Yes good luck with a home purchase either here on Madeira or in amazing Lisbon!! Thank you for watching and for your kind comment. Cheers! M&D
Greetings.. very informative!! I thought the process was rather interesting. As you mentioned, it seems the transaction is more personal there than here in the US.. love the after party concept. :) As far as the fees, I'm in California, and the fees/amounts you paid are pretty close to escrow/title fees here on a $300K purchase .. I have been contemplating moving abroad and your videos are so helpful.. Thanks much! WiL
Hi Wil! Thanks for watching and your ongoing support! We appreciate it. Yes exactly , more personal. The after party took us by surprise and we totally enjoyed ourselves. We are glad you’re finding value in our channel. Cheers! M&D
Thanks , congratulations 🎊 .
Thanks! 😀
Great video guys, thanks for sharing. Other than paying the taxes early, I guess it doesn't matter as long as you can get a refund if something happens between than and the final closing. They don't seem outrageously priced to me. And the after party, I love that idea. Nothing else seemed to unusual. I have always met the buyers or previous owner on every house I purchased or sold. If not during the selling process, always at the closing table. Which usually involves 6-8 people, a bit less than your experience.
Thanks! It was a lot of fun. Different experience for us, but not necessarily for others! Neat to see different ways of doing things around the world. Cheers!
Very helpful video. Thank you!
Was English the language used for the meeting when signing of the contract and also in the contract itself?
Hello Nonya! Yes the contract was in Portuguese and English and the signing was also done in both languages. The entire contract was read aloud in Portuguese and then again in English! Thanks for watching and commenting! Cheers! M&D
I just discovered your channel and I truly enjoy it. I am originally from Europe now living in USA for many years. I long to return to Europe and I am looking for places to retire. My homeland is beautiful but it is neighboring Ukraine so it is very scary to move there. Even though that was my original plan, to move back to my beautiful homeland. Norway (and rest of the Icelandic countries) and Portugal are on my list. I never thought of Madeira. All your videos are very helpful. Thank you for sharing your life experiences, for your honesty and transparency. It is extremely helpful for my husband and me. I think we now have a much better idea and will be able to lay out plan and make decisions. Thank you again. Wishing you all the BEST.
Hi! Thank you so much for that wonderful feedback - we sure appreciate it 😀. These are strange times and who would have imagined parts of Eastern Europe would be going through what they are now. Madeira is definitely worth considering and visiting - who knows - maybe it will win you over too!! We send all the very best to you both and good luck in your planning! Monique & Doug
Some interesting differences vs here in the States. As a future buyer in Portugal, likely in Funchal, this video is a great overview of what to expect!
Hi Chris! Thanks for watching and commenting! We had a really good experience despite some amusing differences. We are glad it provided you some useful information. Cheers! M&D
Well done guys. 😁
Thank you!
Excellent. Exactly what we were looking for in the previous video. Most appreciated.
Video request idea-. You mentioned your first and second down payments. Could you discuss the financial institutions you checked out in your selection process which are local there on Madeira? Please discuss your observations and "shockers" in Portuguese banking industry.
Glad you found it helpful! That's a neat idea. We went with Millennium Bank because is all over Portugal and Madeira, and is very popular. But most of all, that was the only bank that allowed us to open an account before leaving N. America. Cheers!
Excellent information thank you
Hello! Thank you so much for watching and we are so glad you found value in the content. Cheers! M&D
Thank you for creating such informative content which is geared primarily to Americans looking to escape. I am trying to figure out my escape. I own two homes and am planning on selling one in the fall. I am torn between Spain and Portugal with Madeira being in the top spot. My biggest fears are language barriers (I speak some Spanish) and looking for property. It seems cheaper to rent than buy but in Madeira but I could be wrong. I would be very happy with a villa like yours. I am planning an exploratory visit in November.
Hello Scott! Thank you for watching and supporting the channel! We are so glad that you found the information informative and useful. Please have no fear of the language barrier. Most Portuguese speak beautiful English. We are currently learning Portuguese via uTalk app. You can find a link on our latest video for 20% off. Buying and renting on Madeira seems to be increasing. We are very happy with Vila Doce. Please don’t hesitate to contact us if we can be of any further help. Cheers! M&D
Congratulations guys! Damn it , it so beautiful for that money. We sold our home in Vancouver , Canada and I wanted to move either there or Spain , but my wife preferred Czech Republic , cuz thats where she's born and her families are there. We bought a villa in Karlovy Vary (West Bohemia) for similar price, but we still got some money left. Your video makes me want to keep chasing buying a property there one day. I really love the layout of your home.
Hello Ben! Thank you for watching and for sharing some of your journey with us! We also love Czech Republic and there are so many beautiful places there. We have been there and look forward to returning! Cheers! M&D
hi keep up with all the important information, great videos, after visiting madeira in may me and my wife are looking to move there in aprox. 4-5 years, that is why I trully appreciate the time you take in making the videos, thanks again Rene
hi again quick question did you consider a mortgage? is it possible? thanks again
While mortgages are definitely possible here, we paid cash and finally are mortgage and rent free 😀
Thank you so very much for that great feedback - we truly appreciate it! All the best to you both!! Doug & Monique
How different than San Francisco where each offer is 50 thousand more than the previous offer and then you have to decide when enough is enough over asking. And then you get cash for total. That’s just crazy and is still happening as the market is slowing down.
Yes that seemed to be the norm for quite some time now, all over N. America. The next generations will have a harder time buying a home. Cheers! D & M
Great video, very helpful. Thank you both !! You have a wonderful home …I am blown away at the property “Council” Tax. We live in a modest home in a high property taxed state. We pay 42X that per year….. if that’s not incentive to relocate, I’m not sure what is….
Thank you! So glad you found it useful 😀. Yes! That was a hidden gem in that video we thought - the property tax! Back in N. America we were paying $3700 per year for a smaller condo. Crazy. You're right - it has to get people thinking, and reflecting. Cheers! D & M
Re-watching to catch all the golden nuggets you covered in this helpful video. Thank you! Two questions about real estate agent fees. I assume the seller paid so no need to cover. You mentioned your agent. Did you use a buyer's agent and were agent commissions handled? Appreciate your thoughts on buyers agents in Madeira.
PS... I have a call scheduled with the agent you recommended in earlier videos. So excited to get boots on the ground and put your good advice to use on the lovely island.
Hello Azores! Thank you so much for watching and re-watching! We are happy you find value in our content. You are correct the seller pays the agent fees, even when you use a buyers agent. Good luck with your search! You’re in good hands! We are here if we can be of any assistance. Cheers! M&D
Good for you. parabéns! I'm looking for a one bedroom and will need to get a short-term mortgage. Now I know what to expect. Thank you.
Thank you! While we don't know about the mortgage process, we hope the rest is useful info! Cheers, D & M
thanks so much for this. I've just purchased as well, but it's still being built. This is very useful for me.
That's great! There sure are many beautiful places being built here on Madeira! Congrats to you!! All the very best to you! D & M
I wonder what the advantages and disadvantages of going your route. Have you visited the lot and see how your new home would look like? I'm just afraid everything looks good on paper. Are you there and regularly visit while they are building? How do you make sure the builder and everything else is followed to code? How did you find your builder? Thank you so much and good luck with your future new house! 🥂
@@seinfeldcostanza9433 I saw their other work and was satisfied that a. they complete projects b. they complete it with high quality finishes. So I knew I could trust them. I just chose this route as there was literally nothing else that was what I was looking for: brand new semi-detached house in a small community without fees. I've been twice to see how it's going and my agents are also very trustworthy and send me videos.
@@ilsevanheerden4976 awesome. Yeah I think it's great when you pick your lot, your views, your neighborhood and your design. That's what I was thinking also, a brand new, efficient, solar powered, semi detached home with a nice terrace and a little garden. One of these days maybe I can ask who your builder and agent is. Am just looking around the 300k budget though. ☺️
Thank you for sharing this valuable information and much appreciated. It's indeed a very different process! I'm in Canada and I believe our process for buying and selling houses is similar to the US.
Glad it was helpful! You are right about the commonalities between buying & selling in N. America. We found it very different - but fun & interesting here for sure. Cheers!
Not really: in Canada we only pay the Realtor and the lawyer.
Very helpful! Btw, really love your earrings! Did you buy them on Madeira?
Hello! Thank you for the kind words and for watching our video! If you haven’t yet we would love if you would subscribe! The earring are based on Van Gogh’s sunflower painting , and they were a gift from my son from the gift shop at London’s National Galley. Cheers! M&D
Hello! I am French and I have to say it is quite the same in all our countries in western europe
Hello Lea! Thank for watching and sharing this information! Good to know! Cheers! M&D
Very interesting...so very diff than here in USA. Thanks for sharing 🍷🍷
Hello Allan! So true! Thanks for watching and commenting. Cheers! M&D
I'm in the US and I have viewed properties with the owners there several times. I definitely prefer when they are not. I also paid 6 mos property taxes upfront as a part of the closing. There were tons of fees involved for things like title company fees, loan company fees and HOA fees.
That is something we were just not used to. It was different. Interesting, but not preferable you're right. I can see paying that all as part of the closing, but before signing the purchase deed? Yikes. All part of living and learning in different parts of the world I guess! Cheers!
Thank you for sharing. My council tax in southern England in a small house is over £2400.00 (about 2800 Euros) annually!!!!
You are welcome! Ours was very high too - $3700. This is so much more manageable, and sensible. Cheers!
Just subscribed, excellent content and congratulations!
I wonder if you may consider referring your Buyer's Agent and/or Lawyer.
Is there a rating web page where I can see reviews for Agents/Lawyers? Thank you!!!!
Hello Jacob! Thank you so much for watching and subscribing! We appreciate it. Please send us an email , located on our about page and we will share that information with you. Cheers! M&D
@@Track_Us_Down I sent you guys email, if you can send me your lawyer and buyer's agent names, it would be great
So good to hear the details, and helpful to people considering a purchase.
Question: what is the MLS (USA) that you mentioned?
Dennis
Hello Dennis! Thank you so much for watching and we are glad you found value in the video. In North America we have the Multiple Listing Service. A place where all real estate agencies list their properties. You can also see what properties sold for. As there is no MLS here, comparables are harder to determine and every agency has their own property listings. There are some online services such as idealista, but they don’t have all the listings. It’s just different. Cheers! M&D
Hi Doug and Monique, your videos are really great! Very informative. I just wanted to ask if there are any annual management fees associated with you lovely townhouse? This is commonplace with townhouses in other countries and they can be quite expensive with the possibility of increasing over time. Many thanks.
Hello Robert! Thank you so much for watching and for your kind message. We do not have annual management fees ( condos fees or HOA fees) as there are under 6 units - 5 owners. We do know people who do and they are not very expensive- maybe 50 euros per month. We do know that in a quite expensive 4 bedroom apartment ( 900k) the fees were 200 euros a month. Cheers! M&D
Very informative, I watched almost all of your videos, love the way you talked about your life and the interaction between you guys. Would you please make another video introducing the tax benefit for Americans with D7 visa? How does the 10% flat rate for NHR work? How your pension or rental income or capital gains or interests in US tax in Portugal. Many thanks.
Thank you very much for that feedback - much appreciated. We definitely are thinking about doing a video on our D7 process, although many already have I think. We'll see! All the best, D & M
Great video, thanks for posting. How did you find a realtor, and was it one of the “big” companies like Century 21, Remax, etc, or a smaller agency?
Thank you very much for your feedback. While we went into to see many - big and small and collected all their cards - we soon realized it was best that we concentrated on finding a place ourselves. That's what ended up happening for us!
Your channel is perfect for me - so informative :) I've learned a lot thru your videos. Your house and price range will be what I'll be seeking in 2023 - the Madeira cat's out of the bag - expats will be en route :)
Ha Ha! Great comment Steve! Thank you so much for watching and supporting the channel! Madeira is waiting for you! Cheers! M&D
Thanks for these! Lol started to learn a few of these the hard way but appreciate you laying them out. May I ask, was it easy to find a real estate lawyer in Madeira? I’m having a hard time finding one.
Many thanks!
Hello Chelsea! You’re very welcome and thank you for watching! We found an excellent real estate lawyer and we would be happy to share his contact information with you. Please email us at TrackUsDownbusiness@gmail.com Cheers! M&D
That price is similar to many apartments in Oregon! Shocked!!
Interesting! Thanks for the comment! Cheers! M&D
Hey, Great videos!! How about house inspections? How much did they cost?
Hello there! Thank you for the kind words! They don’t do typical home inspections that you would find in North America. Our lawyer asked a friend of his who was an engineer to take a look at our place with us. There was no cost, he said it was a favor even when we offered to pay. Cheers! M&D
Thank you, Doug and Monique! This is such valuable information. Three questions if you don't mind answering: I didn't see a fee for your real estate agent. Was that included in one of the other fees? You live in a building that has other units. Do you pay monthly Home Owners Association (HOA) dues there? Finally, how long was your escrow? In the US it's typically 30-45 days. We appreciate this content so much as we get ready to join you on the island.
We are so glad to hear you found it useful! Thanks so much for the feedback. Great questions. As the buyer, we didn't have any real estate agent fees - that was paid by the seller, and I believe it was about 5 - 5.5% but I can't remember exactly off-hand. There are other units, but as it turns out, fewer owners. It seems to be more family-owned. We have no real common spaces, so no HOA fees - we are not a condominium. It was a little weird for us, but seems okay. And from the time we signed the initial "contract" of intention to purchase with the seller and paid the first down-payment, until closing day, was 3 months. It was only that long because the seller was kind enough to allow us some time to have money transferred from N. America and get things in order. That's great that you are joining us - good luck to you and thanks for watching our channel! Cheers! D & M
Thanks for the great info. I was wondering if you had any choice in the furniture and inclusions or was it already chosen?
Great question! No, what we got was what came with it. They sellers had decorated it and outfitted it for themselves. We liked their style! All the best, D & M
Another great video. Thank you. How did you find your lawyer, notary, realtor?
Hello! Thanks for watching! We found our lawyer boots on the ground knocking on doors. He introduced us to the notary. Our realtor we found through friends. Cheers! M&D
Great video and very informative. Thank you! One question - If for some reason after you had paid the taxes and the seller would have backed out of the deal, how would you have gotten your money back on the taxes you paid i.e., what would have been the process? Thanks again.
Hello Timothy. Thank you for watching and great question! We did ask the same. As you pay the taxes on the day of signing or the day before, the deal is solid and about to happen. If it fell through there is a process to recoup the money, probably involves lawyers lol! We obviously did not go through it so not positive. Cheers! M&D
Thanks for the wonderful video! May I ask how much is the annual property tax? Thanks in advance!
Thanks for watching and for reaching out! We haven't paid it yet, but have been told by our realtor and lawyer to expect around 300 - 400€ for our property for annual "council tax" as they call it. Cheers!
Great apartment, congratulations. Can you give an idea of what HOA costs are in Madeira. Thanks
Thank you! While we have no HOA fees ourselves, from what we understand, similar to property taxes, etc, HOA fees here are quite low compared to N. America. Sorry that's all we know 😄
My Visa was just approved!! I leave on July 4th haha 😂
Awesome! Congrats!! A new "Independence Day"! 😜. Sure a great feeling to get that approved visa back, right? Cheers!
Wow, 4% total closing costs is fantastic, we paid more than 6.5% for similar priced home in the Algarve. ☹
That's interesting to hear how it can vary. We certainly know if it was high, low, or about average. We just knew we had to pay it 😉. Thank you very much for reaching out! Cheers! D & M
If you ever want to house swap and stay in Lisbon, we would love to spend some more time in Madeira. You can see our apartment tour on our channel :) Especially if that means we would get to watch the dog!
That's great! We may just take you up on that! Although we certainly wouldn't burden you with our dog! 😉 Cheers! Doug & Monique
Under negotiation actually means: sold but we are waiting for approval for the loan
If bank says no, then it's for sale again
Hello Manuel! That’s what we discovered! Thank you for watching and commenting! Cheers! M&D
Interesting video. Could you please share how the Transaction and Stamp fees were calculated?
Thank you! Great question. While not exactly sure, we seem to recall that it was a simple sliding percentage scale based on price of home. There may be a bit more to it, such as the rates of the particular parish it's located in too. Cheers, D & M
@@Track_Us_Down Any idea where I might find additional information on how these fees are to be calculated?
thank you for the info,
do you still have to pay property tax annually like in the US or is this just a one time fee ? are maintenance fees hi on Madeira ?
Hi there! Yes we will pay an annual "council tax" as they call it. On our place we've been told it will be between 300€ to 400€ per year. Considering we were paying about $3800 back in N. America for the same size (and others have told us they pay much, much, more) we are happy about that! Cheers! D & M
Excellent and helpful content! I may be wrong but as far as I calculate, the home price is actually 265K (stamp tax and lawyer fee)? From what I read, when lawyers want to charge in percentage, it is actually a RED FLAG (because lawyers have nothing to do with the property price). For such a transaction, the lawyer fee should be between 500 and 1000? I may be wrong though. It would be nice if anyone can elaborate. Regardless, I am sure the home prices in Madeira will increase a lot.
Hello Jacob! Thank you for the comment and for watching our videos. You are correct that the price for the house is 265K and the rest was for the contents of the house to total 290K. Here is Madeira, it is the norm for lawyers to charge a percentage and not a red flag in any way. It may be all of Portugal? -that we are not sure. Yes, prices here are rising. We are happy we purchased when we did. Cheers! M&D
Excellent breakdown of all the nuances going into the purchase of a property in Portugal. Great learning process and thanks for sharing your experience and bringing to the attention of wannabee home owners in Portugal. Some questions though....
1. I heard that Portuguese govt is clamping down or imposing new rules on properties being registered as principal residence to be a residential dwelling only and NOT rentable for short term as Air BnBs etc.. especially if it is a part of multiple dwelling like as say 6 flats in the same general building. Did you hear anything with restrictions on those lines?
2. Since i heard that you were planning to keep the property as flexible as can be to be rentable in your absence (when travelling and away), which is a good idea and will bring in some cash flow to fund the monthly cost of mortgage or interest otherwise on the investment made. We will definitely visit Portugal in the not too distant future and if your property is going to vacant would be our first choice for a short term rental (1-2 weeks).
3. I heard that the Mortgage interest rates are pretty low and if I may ask what would have been the monthly payments on the purchase you made like the Down payment and P & I payments and the duration of the mortgage. If this is a personal question my apologies for asking it. Was more for an informational purpose.
Finally thank you for being so detailed and transparent in your home acquisition, and we wish you all the Happiness, Joy and Good Luck with your new Home. Best Regards.
Thank you very much for that feedback! Much appreciated. And great questions.
1. We are not going to go the way of Airbnb. For one, we really like our neighbors and don't feel that would be a good idea for them, or for us. Plus we'd have to get a special permit and process, accountant, etc to do that sort of "AL" short term rental. We feel that at most, we would maybe in the future look into either Home Exchange, or 1 to 3 or so month rental contracts. But that's getting ahead of ourselves 😄. We don't have any experience with that sort of thing yet so can't really speak to it. Ultimately, this is where we are living, but plan to travel often from here too! There is much about that online lately that we have read, but also, we are not a condominium and we do not have HOA fees.
2. You are bang-on with all that! While we are busy getting settled in and don't have any immediate travel plans as yet, we are happy to hear from anyone interested in that sort of thing, or who can provide insight, on our "trackusdown@icloud.com" email. We think it's a good idea for us to start building contacts of people who may be interested in renting/exchanging. Who knows where it may lead!
3. We can't speak to the mortgage part, as we bought outright, as part of our retirement plan to lose the rent and mortgage payments.
We don't mind the questions! Thank you so much for your feedback and for your support! All the very best to you - Doug & Monique
What about building inspection, was that done and who paid for it? Also did they help with transfer of electricity/gas, were appliances included and if so, any warranty?
Great questions! Funny enough, once while in our lawyer's office, he called up his long-time friend, who was a long-time and highly experienced but retired civil engineer familiar with buildings, who immediately drove down, picked us up at the office, drove us to our place and looked at it all around (mind you, without going in - that would have been a much more involved process, with the seller having to come down, etc). He said, for what he could tell from that, that it looked fine. He wouldn't accept any fee. There was nothing that he, our lawyer, our agent who looked into it more thoroughly, or we could see that suggested we needed to go further than that, as far as inspection. Our lawyer and our agent certainly did help us with transfer of our electricity and water (we have no gas), but from what we know now that is fairly easy. All the appliances were included and other than the washing machine, each have a 3 year warranty! Cheers, Doug & Monique.
Great video! The process, fees and taxes you went through is actually the same in most countries outside of the U.S. The stamp duty you paid on your contract is known as "ad valorem stamp duty" in most British Commonwealth countries and EU countries. It is a % of your purchase price. Additionally, in those countries, the transaction is handled by the lawyers for the seller and buyer, unlike in the U.S. where the real estate agents for the seller and buyer handle the transaction and no lawyer's fee (scale fees based on the purchase price) is involved. The celebration party after the "closing" (they call it "settlement") is also customary in those countries outside of the U.S. 😀
Thanks for reaching out with that insight! Much appreciated! It sure was different for us, as our process in Canada is nearly identical to that of the U.S. So it was fun for us. We enjoyed reading your comment very much with such great info - thanks! Doug & Monique.
@@Track_Us_Down You have a beautiful home in Madeira with stunning views! More like a heaven-on-earth kind of place to be 😀😎😀😎 Looking forward to more videos. Thank you so much for sharing your experience in a new country.
I guess the lawyer part is only needed if you're a foreigner (for advise and translation matters)... It's not mandatory. When I bought my house (I'm portuguese, living in Portugal. Not in Madeira), At my closing we were 8... pretty much the same, except the lawyer. But, if I recall correctly, the taxes were paid there, in the meeting at the bank. Not 5 days before. It doesnt really make scence to pay before... Maybe that's a madeiran thing...
Oh, and we visited the house with the owners still living in. They were there as well, with all their stuff.
@@kikoempis Or maybe they just told them that to Pressure them into
Paying before.
Outrageous taxes and fees. WOW
Yet others have said these were good prices! We suppose it is all relative 🤔. Cheers! D & M
You did not mention real estate broker fees? I am enjoying your videos, from Ontario, Canada.
Hello James! Hello Ontario! The buyer does not pay any real estate fees when purchasing here. Thanks for watching and commenting. Cheers! M&D
If you still didn`t buy the property but you have already signed the contract you`ll have to pay the taxes before the final papers. The owner seller is present because the key will not be given to strangers even if they are from the real state agency. The lawyer was a little bit expensive ! :( You are now in Portugal. Get used ;) Good luck !
Excellent feedback and insight!! Thank you so much for reaching out, we really appreciated reading that. 😀 Cheers! Doug & Monique
We're new to your videos but are finding them very helpful, as we've been in Portugal since early 2021 and are beginning to think about purchasing. Being that you did your own research and found the home on your own, at what point did you start working with a lawyer?
That's great to hear, and thank you very much for the feedback! We started with our lawyer right after we had "entered negotiations" and came to a verbal agreement with the Seller. Then, once the offer contract was done up, we had our lawyer review it. That was really his first involvement. Cheers! D & M
@@Track_Us_Down hi. great detailed info. don't know if you have covered this on your other videos but, was wondering if you also used a lawyer or whatever you call them for your visa/migration process to guide you thru the whole thing. btw, you have a million dollar view of Funchal, especially at night. thank you!
@@seinfeldcostanza9433 Thank you! We sure do love the view, it just never seems to disappoint 😁. We did not use any kind of agency or lawyer to help us with the move or D7 application. With careful research and following the requirements step by step, we felt for us and most anyone else that it is completely doable yourself. Save the high costs of an agency if possible 😀👍🏼.
Cheers! D & M
If you travel to Auckland New Zealand, we have a nice 4 bedroom villa to exchange. Cheers
Thanks so much for reaching out! We appreciate that. We wouldn't mind building a base of interested people & locations for possible exchanges and the like, so please feel free to send us an email at "trackusdown@icloud.com" 😀 Doug & Monique
You can put a bid on the first day a house goes on sale and if they accept it's also goes to pending, same thing...
Hello! Thanks for sharing! Where we are from in North America there is an assigned date when offers can be made, so for us this was different. Thanks for watching! Cheers! M&D
Can you recommend the notary you used please ?
Hello Evgenia ! Please send us an email to trackusdownbusiness@gmail.com and we can send you information there. Thanks for watching! Cheers! M&D
Hey, guys. Couple of questions if you wouldn't mind. Did you hire an inspector/engineer to make sure the property has no hidden defects? Are there an HOA involved?
Hello Vadim! Thank you for watching and thank you for your questions. Our lawyer did set us up with an engineer to come by and look at the property. I don’t think that’s very typical here though. We just wanted someone else to look and give us another opinion. Luckily it was all in excellent condition! We do not pay any HOA fees as we have no common areas. Cheers! M&D
Great video we follow you and you have great content. Would you mind sharing your real estate lawyers name. Thank you.
Thanks so much for that feedback, and for watching 😀. We used Dr. Pedro Freitas, here in Funchal. If you need or are unable to find his contact info, just send us an email at trackusdown@icloud.com and we will be happy to share. Cheers! D & M
How much taxes would you need to pay in USA for purchasing a property in Portugal? How much taxes if you decide to rent it out short or long term?
Not sure about that. We aren't paying taxes anywhere else on our purchase other than here in Portugal, as we are residents here now. We are not going the way of Airbnb, but know that if it were a rental property and we sold it in the future, that the taxes we pay would be higher than a principle residence. Cheers! D & M
Hi could you explain why you picked the area you are living in over other areas can you walk to the shops etc
Hello! You know - for us - we wanted to be in Funchal, in an area with easy access to the Old Town/Centro, the water, but also we love the mountains and wanted easy access to that. We definitely did not want the tourist/hotel zone - too busy and touristy. On one hand, we could live in a turn-key condo, and on the other, we could live in a beautiful detached house up in the hills. We found this to be a PERFECT fit for all those desires, a compromise between the two, and we felt very fortunate to find it renovated so nicely and inclusive of furniture etc., with the view. But also very importantly, within our budget. Funchal has many, many beautiful areas to live in. We have a cafe within a 1 minute walk, and shops about 10 minutes walk. Walking down to Old Town was a beautiful, 40 min walk downhill but not crazy steep. We wouldn't necessarily want to walk UP too often though. The bus up from Old Town/Centro was so convenient, to our door, and only took 10 minutes! We love that. Don't mean to go on, but we are loving it so far! Cheers, D & M.
Perfect spot you found ticks all my boxes enjoy tc noel