Country House in Pegões

Overview

4-bedroom, 2-bathroom country_house of 250 m², built in 2007, energy rating C. Located on rua António Sérgio, Pegões parish, Montijo municipality, Setúbal district. The property includes a spacious garage designed to accommodate up to five vehicles, enhancing its functionality for country living.

Financial Summary

The valuation. The asking price of €695,000 is significantly above the fair value of €150,791, representing an overpriced situation of €544,209 or 78.3%. This indicates a property that lacks financial viability based on current market assessments.

Investment Thesis

Long-term rental The property’s significant gap of 78.3% from its fair value indicates it is overpriced, making the long-term rental strategy less viable in the current market. With a gross yield of 0%, investors should be cautious as the potential for stable returns seems unlikely. Family rental Given the property’s high listing price compared to its fair value, it poses challenges for families seeking affordable housing options. The neighbourhood rating of 58/100 suggests limited attractiveness, further complicating the appeal for family renters. Value-add renovation Although renovations could enhance the property's value, the current asking price reflects a valuation that is significantly above fair market value, classifying it as overpriced. The property's condition rating of 0/100 suggests that extensive work is needed, yet the financial burden might outweigh potential benefits in this context.

Risks

Tenant turnover risk There is a moderate risk of tenant turnover given the Tenant stability score of 60/100, which may lead to increased vacancy periods and associated costs.

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