Country House in Santo Antão e São Julião do Tojal

Overview

3-bedroom, 3-bathroom country_house of 144 m². Located on travessa do Casal da Serra, 27, Santo Antão e São Julião do Tojal parish, Loures municipality, Lisbon district. Noteworthy Features: This property includes three distinct living units, offering potential for rental income or conversion into a spacious multi-level family home in a serene country setting.

Financial Summary

The valuation. The asking price of €175,000 sits below the fair value of €313,527, indicating that this property is subvalued by €138,527 (44.2%). The pricing presents an attractive opportunity for investors. Buy-to-flip angle. A buy-to-flip strategy could capitalize on the significant price differential, allowing for renovations to enhance the property's appeal before reselling at a much higher price. Targeting family buyers will be key in this competitive market. Buy-to-let angle. With an estimated gross yield of 14.5%, the rental income strategy could generate approximately €2,115 per month, providing strong cash flow for long-term rental. The mixed neighborhood further supports stable tenant demand, promising lucrative returns.

Investment Thesis

Long-term rental The property’s strong gross yield of 14.5% suggests a solid opportunity for long-term rental strategies in a desirable neighborhood with a quality score of 75/100. Given its 44.2% gap from fair value of €313,527, this property is an excellent investment for sustained income generation. Family rental With its 3-bedroom layout, this country house is well-suited for family rentals, catering to the growing demand for spacious living near Lisbon. The 14.5% gross yield indicates a strong income potential, particularly given the property’s underpriced valuation at €175,000. Buy-and-hold Investing in this property as a buy-and-hold presents a compelling case due to its significant undervaluation relative to the fair market price. Holding this asset could lead to substantial value appreciation over time, especially in a neighborhood rated 75/100 for quality. Short-term vacation rental This property does not lend itself well to short-term vacation rental strategies due to its condition rating of 0/100, which would likely deter transient guests. The mismatch in property upkeep and vacation rental appeal makes it an unsuitable choice for this strategy. Luxury market Positioning this property within the luxury market is not advisable as it is clearly underpriced compared to luxury benchmarks and requires extensive renovations reflected in its 0/100 condition score. The expectation of high-quality finishes and amenities in luxury rentals would not align with this asset’s current state. Student housing Given the property’s high yield and large layout, it could seem feasible for student housing; however, the current condition of 0/100 suggests significant investment is needed to attract tenants. The property’s pricing also indicates a lack of alignment with typical market standards for student accommodations in the area.

Risks

Moderate Economic Sensitivity The property could face moderate economic risk given its economic and tenant stability scores of 75/100, which indicates potential vulnerability to downturns in local economic conditions affecting cash flow and occupancy rates.

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