House in Sesimbra (Castelo)

Overview

4-bedroom, 5-bathroom house of 350 m², energy rating C. Located Sesimbra (Castelo) parish, Sesimbra municipality, Setúbal district. Features: This property includes a spacious basement lounge with a second kitchen and a 30m² annex featuring a barbecue area, enhancing its entertainment potential.

Financial Summary

The valuation. The asking price of €645,000 is above the fair value of €626,247 by €18,753, representing a 2.9% premium. This places the property in an overpriced category, making it a less attractive investment opportunity.

Investment Thesis

Long-term rental While this property presents a gross yield of 5.8%, the listing price of €645,000 is 2.9% above the fair value of €626,247, indicating it is overpriced. Investors should be cautious, as the property’s condition rating of 0/100 suggests significant additional costs might be necessary to make it attractive for long-term tenants. Family rental Though the location in Sesimbra has a decent neighbourhood rating of 69/100, the price of €645,000 exceeds the fair value, making it overpriced in the current market. With a poor condition score of 0/100, potential repair costs may further diminish its appeal as a family rental option. Buy-and-hold The property’s listing at €645,000 is above the assessed fair value of €626,247, positioning it as overpriced, which raises concerns for buy-and-hold investors. The low condition score of 0/100 implies that substantial renovations would be required, potentially impacting long-term investment returns.

Risks

Economic downturn risk A slight dip in economic stability at a score of 73 could lead to increased vacancies or lower rental income, impacting overall revenue generation.

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