More Housing Package approved, published and in force! What has changed?
The More Housing Package has been discussed for a long time, with some controversy mixed in, in particular, that of the main diploma, which includes several measures such as:
- • the limit on initial rent in new lease contracts;• a isenção de mais-valias;
• the forced rental of vacant houses;
• the suspension of new AL licenses;
•the possibility of condominium owners being able to terminate AL;
• among others.
The AL was actually the figure most affected by the PMH diploma, which was published on October 6th. I will try to explain the main points that affect local accommodation:
• Expiration of licenses: will you give up the AL? Do you have an inactive AL? You have two months to provide proof of continued activity, otherwise…it will expire immediately.
• Suspension of new AL licenses:It covers apartments, applying essentially to coastal areas of the country, as it does not apply to areas with low population density, such as in the interior of the country.
• Condominium owners can terminate AL: with some exceptions, a resolution corresponding to 2/3 of the building’s permilage, condominium owners can determine the termination of AL established in a house or apartment belonging to a condominium. The deliberation must be sent to the City Council and, after 60 days of sending, the AL is considered canceled and exploration must immediately cease.
The IMF announced in recent days that properties in Portugal are overvalued by 20%?
At the last annual meeting of the IMF, held in Brussels, Alfred Kammer, director of the Fund for Europe, argued that “housing property prices in Portugal are overvalued by around 20%”.
This alleged overvaluation is not exclusive to the Portuguese real estate market, on the contrary, it is a trend “in several European real estate markets” – also defended the European director of the IMF.
Kammer also warned that banks should expect more families in trouble, taking into account that the large share of housing loans correspond to variable interest rates (around 90%), which, given the increase in the Euribor index, leads to a significant impact on families’ disposable income.
(Sources: Agência Lusa; Sic Notícias)
From October 16th, it is easier to pass the “stress” test on home loans
Mortgage loans contracted from this week onwards will have greater ease in approval, given the tests imposed on banks by Banco de Portugal. Until now, the test involved a simulation with an increase of 3% on the interest rate to be contracted, with this percentage now dropping to 1.5% for loans lasting more than 10 years.
This option by Banco de Portugal seeks to update the reality in the granting of loans, since the “stress” rule was set at 3% since the times when interest rates were in negative territory, so, after the rise, Maintaining the 3% meant forcing thousands of potential buyers into a monthly effort rate exceeding 50% and, consequently, not obtaining credit.
And here it is, another article that I think will be of special interest to you. Don’t forget, my success is reflected in your satisfaction. Follow me at andreganhao.pt and subscribe to my YouTube channel, to stay up to date with what’s happening in the real estate market. See you soon…