# Building temporary accomodation?



## Lucky13

Hi.. I wonder if anyone can help me. We're thinking of buying land in the Algarve and (obviously) need to do it as cheap as possible. If we had lots of cash we'd buy built, finished, complete BUT we don't. Soooooo, can anyone tell me if it's possible to buy rural land, and build a 'cabin' style dwelling? Our next step will be a ruin but we are keen people with building experience and this is a route we'd quite like to take if it's allowed!

:disclaimer: nativity is not an excuse but I am blonde and simply looking for advice - please forgive what might be deemed as a silly question but I have lots more so bear with me. 

Obrigado

Em


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## Lucky13

I know that a lot put motor homes or static caravans you see.. But what about wooden structures? 

Someone.. Anyone?


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## Janina k

*Reply*



Lucky13 said:


> I know that a lot put motor homes or static caravans you see.. But what about wooden structures?
> 
> Someone.. Anyone?


Hello Em

We have a motor home and have four trips a year in Portugal we have now found an area that we both like.

We bumped into a guy in Serpins one day and over coffee he told use about his story of building a Timberframe house just outside of Serpins. He told Fred and I all that he had done to get his place in the sun. His nickname is Agedhippy so it was easy to find some links for his story on Google. 

I hope that the links to his story will be of help to you and your quest to to build your place in the sun. Fred is trying to convince me to look again at a timberframe house like Dave. We would need a special plot of land to get me to agree to a timber frame house. 

Krystyna

Timber Engineering Europe - News

http://www.expatforum.com/expats/po...s-living-portugal/94008-buying-land-only.html


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## Lucky13

Thank you so much for taking the time to reply - I really appreciate it and shall look at your links. 
We've just returned again after looking at more land, it's difficult to know what to do but it's all in the planning and research right?!

Thanks again x


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## canoeman

Lucky13 said:


> Hi.. I wonder if anyone can help me. We're thinking of buying land in the Algarve and (obviously) need to do it as cheap as possible. If we had lots of cash we'd buy built, finished, complete BUT we don't. Soooooo, can anyone tell me if it's possible to buy rural land, and build a 'cabin' style dwelling? Our next step will be a ruin but we are keen people with building experience and this is a route we'd quite like to take if it's allowed!
> 
> :disclaimer: nativity is not an excuse but I am blonde and simply looking for advice - please forgive what might be deemed as a silly question but I have lots more so bear with me.
> 
> Obrigado
> 
> Em


This has been covered many times, you can't build on Rural land and are *very very* unlikley to get reguired permissions, could you put up a cabin style dwelling No.
Land should be designated Urban and or fall within Camra's PDM plans (permitted building areas), to be certain you can build and that will always carry a premium.
You need to research "ruins" and who can legally do work.
A "ruin" would reguire a project and planning permission, if this is granted then it can work only be done by a Licensed Builder.
You could however do a Renovation of a building that didn't reguire a project or planning permission, but might need a licence to replace roof.

Aged Hippy that Janina k refers too, has build that house, but is it legal no, and should not be taken as a possible way to circumvent planning regulations. It meets none of the requirements of a "Temporary Structure"

The Algarve is must stricter on enforcing regulations than anywhere else, so if land is described as Rural, but you can put a Caravan, yurt, cabin etc be extremely wary.


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## Lucky13

I'm sorry if this topic has already been covered, I'm über new here and just thought it might be a good place to ask.
We have looked at ruins, obviously the price goes up somewhat but we have pretty much concluded this is the route forward for us. 

I've read the links which are very interesting and I appreciate the time taken to post them. 

Sorry if it's already been covered. Thanks.


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## canoeman

It's not a problem repeating things, I mentioned it being covered before so your aware that there is a lot of information availabe already.

You should still be careful with ruins, just because they are a ruin does *not* mean you would necessarily be able to get permission to rebuild, secondly to rebuild a ruin it reguires full architectural plans to* current* building regulations, approved and licence granted, and building work done by a licensed builder. You also need to work to current footprint with possibly a 20% increase in size.

I would suggest that a renovation/modernization fits your requirement of doing work yourselves, yes they might cost more than a ruin, but can work out considerably cheaper plus you don't have a delay with the planning permission process which can take 18months+. 

Land, ruins, renovations are much cheaper in other areas of Portugal


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## siobhanwf

Lucky13 said:


> I'm sorry if this topic has already been covered, I'm über new here and just thought it might be a good place to ask.
> We have looked at ruins, obviously the price goes up somewhat but we have pretty much concluded this is the route forward for us.
> 
> I've read the links which are very interesting and I appreciate the time taken to post them.
> 
> Sorry if it's already been covered. Thanks.



It`s never a problem if you are asking a reasonable question. But it is owrthwhile looking through other posts to see what has been said before.

Any information you get from Canoeman is worthwhile taking seriously.


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## anapedrosa

Lucky,
One thing to consider when you are looking at the price of land is that the tax on the purchase transaction for land is 6% of the assessed value. 

The emphasis on assess caught us a bit off guard when we purchased recently as our purchase price was half the assessed value. My guess is that this is not common, but the property we purchased had been assessed in 2004.


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## canoeman

Don't forget Stamp Duty land & property at 0.8% of price paid, the IMT 6% is now 6.5%,

IMT 2012 for property
Value (EUR) Rate (%)	Deduction
92.407	0	-
+ 92.407 until 126.403 2 1,848.1
+ 126.403 until 172.348 5 5,640.23
+ 172.348 until 287.213 7 9,087.19
+ 287.213 until 574.323 8 11,959.32
+ 574.323 6	-

Different rates for a second home or non resident, value are always reassessed at sale for IMI.

Something doesn't sound quite right here
"when we purchased recently as our purchase price was half the assessed value"


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## anapedrosa

Good point Canoeman, need to consider all taxes. 

The point I was trying to make is to calculate taxes on the property is assessment and not on the purchase price. That used to work in the buyers favour, but with the current drop in prices it may not be the case.


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## canoeman

Are you confusing IMI (yearly rates) which are calculated on assessed value, with IMT & Stamp duty both of which are calculated as a % on the purchase price as declared on Escritura.


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## anapedrosa

I was referring only of the purchase transaction, quite right though, we need to consider both purchase and reoccurring tax on the assessed value. 

This was the first time I purchased at less than an assessed value, so it did catch me off guard, that's why I thought to flag it. However, your post is clearly more complete.


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## canoeman

Just to give full IMT costs


IMT for land only _prédio rustico_ is 5%.
IMT for construction & urban properties not for habitation _warehouses, barns_ 6.5%.
For mixed land _predios mistos_ the rustic part base rate of 5%, and urban area with property as the chart below or 6.5% without property.


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