Know more about plots, houses, condominium and services by reading the following information. For further questions, please contact us at:
|Who is the seller?||
Who is the seller? São Lourenço do Barrocal - Investimentos Turísticos e Imobiliários S.A. (the Company), owner of the permit for tourist purposes of the Tourist Development São Lourenço do Barrocal (CTSLB).
Who are the Company’s shareholders? The project is being developed by the family who has own the estate since the beginning of the 19th century, now led by Maria do Carmo Martins Pereira, together with the family of António Menano.
Who is the Managing Partner of the Company? The project is managed by José António Uva.
What is included in the first phase of CTSLB? The first phase includes a hotel, a spa, a restaurant, a winery, a horse riding centre, a children’s play area, all located in the centenary “Monte” of the estate – whose rehabilitation is at the care of Architect Eduardo Souto de Moura – and the 25 Plots of Land of the areas of Arrifes and Pinheiro.
When will the Hotel be opened? The Hotel is open. Its official opening date was March 18th 2016.
|Plot of land purchase||
What is a Plot of Land? A Plot of Land is a subdivision lot licensed to build a Detached Family House, under the CTSLB permit, with an area of land ranging from 6.000 sq. m. to 12.000 sq. m., depending on the topography and geology of the landscape. The approved house project for each plot may be changed by a project of another architect of the buyer’s choice, together with the consequent amendment of the permit, in compliance with the prerequisites of the Detailed Plan of the Barrocal Estate (PPHB) (which, among others, requires that the house to be build only has a single floor with a maximum area of 600 sq. m., and a swimming pool).
How was the location and area of each Plot of Land chosen? Each Plot of Land represents a “barrocal”, which is a series of granite outcrops that created natural crevices sheltered by oaks and olive trees. Besides lending their name to the estate, the “barrocais” served as residence to the first Neolithic settlements over 7.000 years ago.
What is included in the purchase of a Plot of Land? The Plot of Land includes full ownership of the land, plus the installation of all the necessary infrastructures for building a house (already licensed) up until the entrance of each Plot; namely electrical systems, telecommunication networks (optical fiber and copper), clean water supply (treated and certified for the purpose at the “Monte”), fire control system, road network, supply meters and a mailbox that serves as an entrance landmark to each private property.
What is the price of each Plot of Land? The price of each plot is €300,000.
How is the Plot of Land purchase? The purchasing of each Plot of Land is subject to Public Deed signed by the Buyer and the Company; each deed has the form of a standard template equal to all Buyers. By signing the Deed the Buyer is also bound to the Articles of Association of the development and the corresponding Management Regulations, while also entering into a Tourism Operation Agreement with the Operating Entity of CTSLB.
What are the payment options? Full payment must be delivered with the signing of the Deed.
What is the procedure to start the construction of the House? If the Buyer wishes to make amendments to the approved permit for the Plots, the Buyer will have to submit a new architectural project, for the purposes of amendments to the permit, to the Management of CTSLB (in conformity with the Management Regulations) and later to the Town Council of Reguengos de Monsaraz. With the approval of the Council, the Buyer will have to lodge the infrastructure projects (civil engineering) and get quotes from builders of their choice with whom the buyer must enter into agreements for the building of the house.
Who supervises the amendment to the permit and the construction? The Buyer may hire São Lourenço do Barrocal - Investimentos Turísticos e Imobiliários S.A. to manage the project and supervise the works. The Buyer may also supervise the works themselves or hire the services of third parties.
How long does it take to build a house? About 18 months.
What is the estimated cost of building a house? The approved house project has an estimated cost of €900/ sq. m. of gross construction area; this price includes canopies and external infrastructures. However, other houses, like the one designed by Architect John Pawson, has an estimated cost that ranges between €1,200 and €1,500 / sq. m. of gross construction area.
At the end of the works, who grants the Use Permit for Tourist Purposes? The Town Council of Reguengos de Monsaraz will be responsible for verifying that the house complies with the approved project.
Can the Hotel manage the houses for tourism purposes? All houses must be under a tourism operation agreement with CTSLB. However, if the Buyer does not wish to use the house for tourism purposes at any time whatsoever, such is possible pursuant terms to be entered into the tourism operation agreement adjusted to the needs of each Buyer. Should the Buyer wish to capitalise on the investment and include the house in the tourism operation, vacancy periods must be agreed upon in advance.
What is the expect return from the use of the house for tourism purposes? Taking into account the differences in cost and the construction area that the Buyers may choose, and the vacancy periods of the house during peak season (March to September), annual return can be between 2% and 4%.
How are revenues divided when the house is used for tourism purposes? Once expenses for external provision of services are deducted (sales commissions and consumables), profits are shared on a 50/50 basis between the Owner and the Company.
Can the Buyer manage the house for tourism purposes alone? According to the law, only São Lourenço do Barrocal, the operating entity, can manage the houses for tourism purposes.
What is the best tax solution for: purchasing a Plot of Land, building a house and tourism operation? We’ve prepared an Investor’s Tax Guide, available upon request.
What are the condominium monthly costs? The base cost per house is €200 / month, adjusted annually by reference to the CTSLB budget to be approved by the Assembly of Owners; this includes maintenance of the common infrastructures, non-built common and private areas of each Plot. Cleaning, laundry and other hotel services will be billed according to the use of the house, while taking into account real costs and a maximum margin of 20% of administrative management, according to the law in force and the terms to be entered in the tourism operation agreement adjusted to the needs of each Buyer. Electricity and water are charged at fair value through the reading of the meters. Condominium expenses do not include building maintenance costs.
Which expenses are not charged by the property Management? Expenses with voice telecommunications, TV and Internet are not included in the property Management and they must be contracted directly by the Owner.
What are the advantages of using the services of the Hotel? Owners have a 10% discount on all Hotel services and free access to the swimming pool.