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Finally found the dream house, but...

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(@itexpert7)
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Hi everybody, I'm in central Algarve renting for 2 long years.
Seen way over 100 houses. Estate Agents are unnecessarily difficult in this country. If they only had the exact location and proper photos & floor plans would have saved most visits.

So the "dream house" is 800 meters from sea, great views, large and modern with 3030m2 plot. After some haggling, they accepted my offer at a great 250k discount.

There are some buts:
I found out the pool is illegal, the seller after 2 months (slow lawyers) negotiations agreed to legalize it and keep 50k of the house price in escrow for 2 years in case it fails.
The plot is not clearly marked, looks smaller than the quoted size, so it needs topographic survey, and worse the septic tank has an "overflow run off pipe" at the end of the property and has never been emptied (they didn't even know where it is) in 19 years. When it rained, the drains in the sinks smelled a bit! 😀

The house is split in 6 rental apartments, most with a living room & kitchenette. So it needs work to combine into 1 great property.
I'm ready to sign, but talked to some builders and they gave high prices of 300k or so.
The house is newish for British standards, from the 1990s. Needs all new windows etc.

My questions please if you're still with me:

1. Does a less than 30 year old house really need new water pipes throughout? Why? (Nobody looked at the pipes, just based on age). In England they are copper and last 50+ years easy.
The house is an active rental house (5000 euros a week) without any visible problems. Had a survey done.

2. Should I hire multiple builders, each for a specific job or 2, so it can be done faster and with more control (like I would definitely do in England with multiple different builders working and being booked in for different jobs), or follow my lawyers advice and get 1 big company with contracts and delivery dates etc and higher fees and not much control on this complicated project?

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Posts: 290
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Topic starter
(@itexpert7)
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Joined: 3 years ago

Any advice or comments will be very much appreciated.

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(@jonesdn2020)
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Joined: 2 years ago

Hi Michael and congratulations! You are giving me flashbacks on the last two renovations we did and why we swore to rent for the rest of our life. We have short memories though and love doing renovations.

I remember the post you had with the septic drain. Brings back memories to yesterday and cleaning out our kitchen P-trap. The property management company does nothing for this apartment. 

We had a great conversation with the owners of CRAD Studio | Expats Portugal at the Lisbon meetup. They are building a personal home in Portugal currently. I would check with them and Reabilitejo | Expats Portugal to see where each can assist or recommend options.

On the water pipes do you have any information on them? Material? I know you mentioned copper like we had in the US but in the 90s China shipped cheap copper around the world. My house in Las Vegas that was built in the early 90s with copper and already had pin holes in it in 2008.

Now the last reno we did in 2020 on a house built in 1970 with copper we chose to replace it with PEX just out of an abundance of caution. Plus, we were replacing the cast iron sewer lines and it was cost effective. 

Shannon and I always enjoy a good demo hammer project if you ever need help!

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(@thomasribatejo)
Joined: 6 years ago

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Posts: 235

@jonesdn2020 thanks for the recommendation!  I'll reply here with certain points.  We will - unusually, as it's outside our normal service area - be working in the Algarve between Christmas and New Year, in case we can be of any hands-on help then.

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Posts: 290
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Topic starter
(@itexpert7)
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Joined: 3 years ago

Thank you. No we have no idea what the water pipes are "mid 1990s", that's why I'm shocked that on a fully inhabited house with no visible problems (had survey) I'm asked by 2 builders to change the water pipes to be safe!

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VIP Member
(@jonesdn2020)
Joined: 2 years ago

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Posts: 2208

@itexpert7 They may be aware that they are copper from China in that era. It was hard for builders to justify not buying the cheap copper based on a 50-year rating. That was until us homeowners figured out it was only 25 years in reality.

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Moderator
(@thomasribatejo)
Joined: 6 years ago

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Posts: 235

@itexpert7 this is not uncommon - it's not necessarily about upselling, but can be about their liability.  The same can arise with electricity/re-wiring.  Whilst you can, of course, say "it's fine, I'll assume that risk", some contractors may choose not to take the chance.  If the survey was thorough, and flagged no related issues, perhaps don't feel pressured.

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Posts: 235
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(@thomasribatejo)
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Joined: 6 years ago
Posted by: @itexpert7

Does a less than 30 year old house really need new water pipes throughout?

Unless I missed it, you didn't say what brought this issue up with this property.  Who suggested it might be necessary, and did they say why?

Whilst newer pipework is most commonly PEX, and lasts well (and the joints work well), older pipework was metal (but not generally copper in PT) and tends to rust, leading either to infiltration out of the pipes themselves, or more commonly, at the joins.  We wouldn't typically expect this in a 1990s place, but it's quite possible.

If there are no damp issues linked to problems with the pipework, it may be that this is in the "when you're remodelling, check with a view to replacing" rather than it needing doing now.

Posted by: @itexpert7

Should I hire multiple builders, each for a specific job or 2, [...] or follow my lawyers advice and get 1 big company

I think this depends on your appetite/ability to manage the project yourself, above all.  Understandably, you don't go into detail of what's involved, but it sounds like it's less of a big job, than a complex one - and perhaps in any event you'll want to keep closely in the loop?

A key issue with the PT construction market is that there are small outfits (many overstretched, and pretty much all without project management skills/capacity - and I am talking general contractors who could theoretically run the whole thing), and there are pretty large ones (for which you pay, perhaps without the leverage in practice to "make" them do a good, smooth, timely job), but in an ideal world you'd probably need a mid-size contractor, which is almost non-existent in most of Portugal.  Perhaps you'll find this in the Algarve...

If you do go for a one-hit company, make sure of their reputation, recent work, etc, and check what the resolution approach is if they don't deliver.  Don't assume you can rapidly enforce against underperformance - you almost certainly can't.

Aside from this, whatever size the contractor, I would advise not breaking it down into very small pieces of work - you need enough to attract a contractor, and keep them on site, otherwise you'll spend the next few years trying to coax people back to finish the 20% they didn't sort before they went off to the bigger job.

Posted by: @itexpert7

I found out the pool is illegal, the seller after 2 months (slow lawyers) negotiations agreed to legalize it and keep 50k of the house price in escrow for 2 years in case it fails.
The plot is not clearly marked, looks smaller than the quoted size, so it needs topographic survey

I have to advise that these things should happen before completion of the purchase, unless you're able to live with the risk of the pool not getting legalized (ie having to remove it) or the boundaries presenting an issue.  I realise you may prefer to press on, as finding the right place is not easy!  The boundary work may be on file, as land registry data is better in the south of Portugal - your lawyer should be able to check this for you.

Posted by: @itexpert7

the septic tank has an "overflow run off pipe" at the end of the property and has never been emptied (they didn't even know where it is) in 19 years

This suggests to me that it's a soakaway type of tank, so may not require emptying if it's used correctly for that type of tank (toilet waste, basic toilet paper, and minimal cleaning products down all connected drains).  If this does not suit you, it would be worth budgeting for a completely new septic tank setup.  They're not prohibitively expensive, and having a new one might provide peace of mind.  Bear in mind that waste smells coming back into the house may be more to do with inadequate/non-existent traps, etc.

 

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Premium Club Member
(@itexpert7)
Joined: 3 years ago

Member
Posts: 290

@thomasribatejo 

Hi Thomas, thank you very much.

> Unless I missed it, you didn't say what brought this piping issue up with this property. Who suggested it might be necessary, and did they say why?

Per my post, nobody looked at the pipes, just based on age. The house is an active rental house (5000 euros a week) without any visible problems. Had a 4 hour survey done by a British RICS guy, but he didn't dig into anything.
But 2 builders said it's better to replace all piping with modern copper encased in plastic pipes, as they will be re-tiling a lot of areas anyway. Absolutely no damp issues for any reason.

It's a big project, estimated by builders to over 300k including changing all windows, putting underfloor heating, removing some walls, new kitchen, etc. Plus more for solar panels, etc.

I'm finding builders that have like 5 or 10 people working for them. Are these "medium" sized?
But still they have the mentality of undertaking the whole project, and somehow being able to quote from the beginning for the lot.

Also they have availability problems, so it makes much more sense to me to use 2 or 3 of them, and split the work into large parts (e.g. one floor each).

Also ideally we would like to be able to move in after 1-2 months, while they are still working. Like take half the house, or the upstairs only, while they are still working on the other 2 floors (3 total). As we hate our rental, and also it's 2500 a month saving.
But none of the builders like that idea 😀

In my experience from 2 house renovations in England, builders need constant supervision else they do the minimum and not exactly what I wished. I guess it's the same here, judging from some of the work I've seen in our rental house (mains water pipe leaking getting me a 4000 water bill that the landlord doesn't want to even share, with the plastic pipe under the driveway with zero protection, no surprise it leaked. And the plumber didn't even replace the pipe, just 10cm of it, and didn't again put any protection, just some sand).

> I have to advise that these things should happen before completion of the purchase, unless you're able to live with the risk of the pool not getting legalized (ie having to remove it)

Thank you. But it will take up to 2 years to legalize, the seller will lose 50k if they cannot, and I was told about amnesties happening. Also I was told by multiple sources that it never happened to ask to remove a pool, they just give a fine. Are they wrong?

I have some land registry plot diagrams, but they are very small and rough. I was told by multiple sources to hire a topographic survey which they will tell me exactly where it begins and ends and put (or discover in the deep bushes) markers.

About the septic tank, indeed, it doesn't worry me too much, as there is no ventilation at the moment at all, so it just needs venting and checking by an expert. In the UK by regulation every single toilet needs a vent pipe even when connected to the sewers, so there is never a smell. In Portugal they haven't done that yet.

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