# build cost in central Portugal



## katherine54 (Jan 12, 2016)

Hi.am new to this but can anybody help me.
Bought a plot of land near Lake Cabril some 7-8 years ago and now have to start building or will lose planning and have spent over 130000 euro to date.
Paid too much for it then and now would not get half the cost.It has a Project for a villa 400 sq m...obviously that will not now happen.We have been told we have to build this year as we have being drawing it out by submitting changes to Project but I don't think they will give mortgage for house in Portugal.We are now looking to change that to a house perhaps half the size and would be grateful if anybody could tell me ...1. what is the best build price per sq.m we can expect to get.
2. Making the Project smaller..is that likely to involve a long and expensive procedure.
We have already installed the bore hole and brought the phone/electricity to site.
Any advice would be appreciated.Thanks in advance, Katherine


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## MrBife (Jul 26, 2009)

In my opinion you should be careful not to build something incorrect fro the plot, for the area and without a resale plan in the back of your mind.

Yes you could throw up something cheaply built and small but then you could be stuck with it for ever. If the plot will take a 400m2 project then you should build that and put in all the conduits pipework and infrastructure for when you can afford to finish all areas to a high standard.

Plenty of builders in the north still happy to work close to cost to keep active and you should find someone at close to €500 per m2. Phase the project so you can complete enough to live in for now and then other phased sections and other finishes as you can afford.


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## katherine54 (Jan 12, 2016)

*Build Cost in Central Portugal*

Thank you so much for your reply but how much time the Council will give us to do that I do not know.I don't want to be left in a position where I have got to roof level and then cannot proceed as they would probably put pressure on us to complete.I had not thought of the idea of resale and thanks for that but would a villa of 200 sq m not sell as easily as one of 400 sq m..do you think.This is also in a Conservation area and Council would prefer if we lost the Planning Permission ..i am certain of this.Thanks again but do you know if Banks there will give any Mortgages.Katherine


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## robc (Jul 17, 2008)

Hi Katherine
We are just coming to the end of our build and thought some experiences may help you decide what to do.I have overtyped in red below.



katherine54 said:


> Thank you so much for your reply but how much time the Council will give us to do that I do not know.
> They will normally have a set time for you to start the works and to complete the works. This information should be available on their website, maybe a quick search around can get you some answers
> 
> I don't want to be left in a position where I have got to roof level and then cannot proceed as they would probably put pressure on us to complete.They will, but only in so far as the licensing deadlines occur, we had to go back for 2 extensions to complete, both times it was a paperwork exercise with a small cost, iirc maybe a total of 80 euros for the two extensions. They offered 6,9 and 12 month extensionsI had not thought of the idea of resale and thanks for that but would a villa of 200 sq m not sell as easily as one of 400 sq m..do you think.
> ...


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## RichyBassett (Jan 13, 2016)

*Building*

Hi Katherine, yours is not a unique story, it is happening all over Portugal now. I would suggest that you go back to step one and think this through. What you have paid is sunk cost. Consider where you are now and what you want to do going forward. 
a. Do you still want to build a big house?
b. Are you trying to rescue your investment?
c. Would you be happy holding onto the land?
d. Are you able to take on the risk that it will not be completed?
Now consider: many people are putting up prefabricated mobile homes mounted on wheels or wooden frames. No permit is necessary in some cases. Tell the Camara that this is temporary housing while you build the big house. 
I have a friend who might be interested in putting two mobile homes on your site and sharing the rental with you. This is not me and I will make no profit on this, it is just an option that might be available if you take this route.
Best of luck, keep in touch, Richy


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## Strontium (Sep 16, 2015)

katherine54 said:


> Thank you so much for your reply but how much time the Council will give us to do that I do not know.I don't want to be left in a position where I have got to roof level and then cannot proceed as they would probably put pressure on us to complete.I had not thought of the idea of resale and thanks for that but would a villa of 200 sq m not sell as easily as one of 400 sq m..do you think.This is also in a Conservation area and Council would prefer if we lost the Planning Permission ..i am certain of this.Thanks again but do you know if Banks there will give any Mortgages.Katherine


...


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## Strontium (Sep 16, 2015)

katherine54 said:


> Thank you so much for your reply but how much time the Council will give us to do that I do not know.I don't want to be left in a position where I have got to roof level and then cannot proceed as they would probably put pressure on us to complete.I had not thought of the idea of resale and thanks for that but would a villa of 200 sq m not sell as easily as one of 400 sq m..do you think.This is also in a Conservation area and Council would prefer if we lost the Planning Permission ..i am certain of this.Thanks again but do you know if Banks there will give any Mortgages.Katherine


Hi,

There is little chance of getting a mortgage as basically you have no collateral unless the land without any habitable building is in an area of consistent high demand for building, ie by the beach on the Algarve. A bank loan would be based on a percentage of a low estimate valuation as no bank wants to have to reprocess property then sell it to recoup their loss as this is a long drawn-out expensive process. The eventual value of the build is of no consequence to the bank as this is an intangible asset so cannot be used as collateral. The phased building loans would also be difficult as, I assume, you are not a builder so would not be a business loan partly based on your pervious projects and a business plan for the present one.


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## katherine54 (Jan 12, 2016)

Thanks Richie..but i don't think we can win.We have spent in excess of 140-150000 euro already and to complete would be another 300000 plus euros.
Even if we can get to roof level we are still stuck and I cannot see the Camera in this area allowing the mobile home idea..they would want to see work starting on main Project.
It looks like we will have to let Planning Go and according to our Architect will not get it back..do we just loose what we have paid or is there any point pleading with Camera.Richy,as you said it is happening all over portugal and some amazing houses for sale in our area for a fraction of what the completed cost to build this would be.x


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