Apartment in Santa Maria Maior

Overview

3-bedroom, 2-bathroom apartment of 120 m², energy rating C. Located on rua dos Douradores, Santa Maria Maior parish, Lisbon municipality, Lisbon district. Noteworthy Features: This apartment retains original architectural elements, such as intricate ceilings, while offering modern amenities like air conditioning and includes weekly cleaning services for added convenience.

Financial Summary

The valuation. The asking price of €1,199,000 significantly exceeds the fair value of €159,996, marking it overpriced by €1,039,004, or 86.7%. This discrepancy highlights a pressing concern for potential investors considering profitability.

Investment Thesis

Long-term rental The property’s listing price of €1,199,000 far exceeds the fair value of €159,996, indicating a significant overshoot of 86.7%. At a gross yield of only 2%, this investment strategy is constrained, making it less appealing for long-term rental purposes. Short-term vacation rental While the neighbourhood scores well in amenities and tenant quality, the current asking price of €1,199,000 is excessively above the fair value of €159,996, revealing an 86.7% markup. The low yield of 2% further solidifies that this property is overpriced for the short-term vacation rental market. Buy-and-hold Despite the advantageous location in Central Lisbon, the property’s asking price of €1,199,000 significantly overshadows its fair value of €159,996, leading to a gap of 86.7%. Such an inflated price, coupled with a modest yield of 2%, diminishes its attractiveness for a buy-and-hold strategy.

Risks

Tenant turnover risk The tenant stability score of 60/100 indicates a potential for higher turnover and vacancy rates, which could impact cash flow.

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