House in Pedrouços

Overview

5-bedroom, 1-bathroom house of 168 m², built in 2009, energy rating C. Located on rua João de Deus, Pedrouços parish, Maia municipality, Porto district. Property Highlights: This property features a spacious outdoor area with potential for landscaping and an independent entrance, providing opportunities for additional privacy or rental income.

Financial Summary

The valuation. The asking price of €250,000 sits €79,016 (31.6%) above the fair value of €170,984, indicating that the property is overpriced. This significant discrepancy suggests a lack of immediate investment appeal based on current market conditions.

Investment Thesis

Family rental The 5-bed house in Pedrouços, Maia, is overpriced, with a gap of 31.6% compared to its fair value of €170,984. With a gross yield of 7.1% and a neighborhood rating of 63/100, the property presents challenges for attracting family renters seeking value. Long-term rental Given its fair value of €170,984 and listing price of €250,000, this property is overpriced, creating pressure on long-term rental yields. The condition rating of 38/100 further diminishes its appeal to long-term tenants who prioritize quality. Buy-and-hold The 5-bed house in Pedrouços is overpriced, as indicated by the significant valuation gap of 31.6%, which makes it a less favorable investment for a buy-and-hold strategy. While the proximity to Porto suggests potential for future growth, the current valuation raises concerns about long-term profitability.

Risks

Potential for Increased Vacancy Rates The property may face higher turnover and vacancy risks due to its lower tenant stability score of 60/100, which could lead to reduced rental income.

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