Apartment Building in Odivelas

Overview

0-bedroom, 0-bathroom apartment_building of 209 m², built in 1988, energy rating C. Located on rua Doutor Sidónio Pais, Odivelas parish, Odivelas municipality, Lisbon district. Unique Feature: The building includes a private yard of 419 m², providing rare outdoor space in a central urban setting, enhancing rental appeal and potential for recreational use.

Financial Summary

The valuation. The asking price of €750,000 is significantly above the fair value of €416,615, positioning it at €333,385 (44.5%) overpriced. This raises concerns regarding the investment's feasibility.

Investment Thesis

Family rental The property is overpriced at €750,000 compared to the fair value of €416,615, indicating a significant gap that would require careful consideration. With a gross yield of 0%, the investment potential for family rental is diminished, making it a challenging market entry. Long-term rental As an overpriced asset with a fair value gap of 44.5%, this property does not present a compelling opportunity for long-term rental investors. The low yield and the subpar condition further complicate the viability of this strategy in the current market. Buy-and-hold The buy-and-hold strategy is less attractive for this overpriced property, as the significant deviation from fair value suggests a restrained appreciation potential. Investors should be cautious, as the 0% gross yield and poor condition may hinder long-term profitability in the suburban Odivelas market.

Risks

Tenant turnover risk The tenant stability score of 65/100 suggests a higher likelihood of tenant turnover, potentially leading to increased vacancy rates and associated costs.

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