São Vicente

Overview

3-bedroom, 2-bathroom apartment of 115 m², built in 1955, energy rating E. Located on rua Leite de Vasconcelos, São Vicente parish, Lisbon municipality, Lisbon district. Features: This apartment includes an outdoor patio of over 25m², enhancing entertaining options, and is positioned near local shops, enhancing everyday convenience.

Financial Summary

The valuation. The asking price of €560,000 is significantly above the fair value of €251,663, presenting an overpriced situation with a variance of €308,337 (55.1%). This indicates a challenging entry point for potential investors.

Investment Thesis

Long-term rental Despite the neighbourhood's strong amenities and a tenant quality rating of 84/100, the apartment is overpriced at €560,000 compared to its fair value of €251,663. The gross yield of 3.5% is insufficient to justify the premium price, making this an unattractive long-term rental investment. Family rental While the property is situated in a Lisbon urban area with diverse employment opportunities, the significant price gap of 55.1% indicates that the apartment is overpriced at €560,000. Potential rental income may not adequately compensate for the elevated purchase price, deterring family renters seeking value. Buy-and-hold With a fair value of €251,663, purchasing this apartment at €560,000 leads to an unfavorable long-term hold strategy due to its overpriced status. The combination of a 78/100 condition rating and lower-than-ideal yield makes it a less compelling buy-and-hold property in the current market conditions.

Risks

Economic downturn risk A potential economic downturn could negatively impact the property value, despite its strong economic stability score of 90/100, which may lead to decreased tenant retention rates from the current tenant stability score of 80/100.

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