Mix Use Building in Porto Santo

Overview

0-bedroom, 0-bathroom mix_use_building of 198 m², energy rating B. Located on rua Manuel Gregório Pestana, Porto Santo parish, Porto Santo municipality. Noteworthy Features: This property includes a commercial space with an outdoor area, previously operated as a restaurant, enhancing its potential for diverse business opportunities.

Financial Summary

The valuation. The asking price of €650,000 is significantly above the fair value of €314,496, sitting at a daunting €335,504 (51.6%) over fair market valuation. This property is clearly overpriced.

Investment Thesis

Short-term vacation rental The property's current listing price of €650,000 significantly exceeds its fair value of €314,496, indicating it is overpriced by 51.6%. Given the 0% gross yield and poor condition rating of 0/100, this investment lacks immediate returns and long-term viability in the vacation rental market. Long-term rental With a listing price reflecting a substantial gap from its fair value, the property is overpriced and offers no yield potential. The combination of a 0/100 condition score and a mediocre neighborhood rating of 65/100 makes it unsuitable for attracting long-term tenants. Buy-and-hold The considerable difference between the current listing and fair value suggests the property is overpriced, which could hinder long-term appreciation. Additionally, the 0% gross yield and poor overall condition mean that holding this asset could be financially burdensome over time.

Risks

Potential Rent Defaults The economic stability score of 60/100 and tenant stability score of 62/100 suggest a moderate risk of rent defaults, increasing the chance of financial instability for the investment.

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