According to Infinito Real, a Portugal based property agent, the bank lending continuing to be the main stumbling block in the Portuguese property market, investors and developers are now looking at new ways in which to side step the banks allowing them to secure a deal.
Stephen Anderson, managing director of Infinito Real said: "The demand is there but financing is still proving difficult. However, recently we have seen a few savvy developers offering an alternative method of funding to avoid the stumbling block of acquiring finance from the bank, thus helping to get the property market moving.The idea involves buyers putting down an approximate 30% deposit and then spreading the remainder of the payment to the developer over a period of years agreed with the developer and depending on the client".
Once the client pays the deposit they will sign the deeds, meaning they own the property and can rent it or use it however they wish. The offer is interest free with regular payments due over the term of the contract, but this deal is currently only available with a few select developers throughout the Algarve.
Source: http://www.propertywire.com/news/europe/portugal-lending-property-market-201202036115.html