Apartment in Amora

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Overview

2-bedroom, 2-bathroom apartment of 80 m² on the 3rd floor, built in 1981, energy rating D. Located on rua das Flores, Amora parish, Seixal municipality, Setúbal district. Noteworthy Features: The apartment boasts high-quality finishes with modern tiles, built-in LED lighting in false ceilings, and a balcony that enhances its spacious design appeal.

Financial Summary

The valuation. The asking price of €285,500 is €28,326 (11.0%) above the fair value of €257,174. This places the property in a fair valuation range but indicates limited room for negotiation. Buy-to-flip angle. A buy-to-flip strategy could yield potential short-term profits, although the slight markup above fair value may limit immediate resale gains. Buy-to-let angle. Renting this 2-bed apartment at an estimated €785/month would generate a gross yield of 3.3%. The location's suburban appeal suggests stable demand from long-term tenants.

Investment Thesis

Long-term rental The 2-bed apartment in Amora, Seixal offers a gross yield of 3.3%, which aligns with the region's stable tenant base due to its suburban nature. Although the property is assessed fairly against its listing price, the condition score of 0/100 suggests that significant renovations may be necessary, potentially impacting long-term rental viability. Family rental This apartment in Amora, Seixal presents a suitable option for families given its proximity to Lisbon and the low crime rates in the area, enhancing tenant security and stability. Although the property is fairly valued at €285,500, its poor condition could require additional investment to meet family needs effectively. Buy-and-hold Investing in this apartment could be considered sensible for a buy-and-hold strategy due to the steady demand in the suburb, bolstered by the neighborhood's amenities and overall quality rating of 72/100. Nonetheless, while it's listed fairly against its value, the property's condition hurdles present a challenge that may affect long-term appreciation. Not ideal for short-term vacation rental The Amora apartment is not suitable for short-term vacation rentals, as its gross yield of 3.3% and condition score do not support the expectations often associated with this rental strategy. The neighborhood dynamics lean more towards long-term residents rather than transient guests, making this investment less viable for this purpose. Not ideal for student housing This property is not positioned well for student housing due to its limited condition score and lower yield, making it less attractive for a transient tenant demographic. The area's amenities do cater to families and long-term residents more than to students, thereby decreasing its suitability for this market segment.

Risks

Tenant turnover risk The tenant stability score of 65/100 suggests a potentially higher turnover rate, which could lead to increased vacancy costs and the need for continual tenant sourcing.

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