Apartment in União das Freguesias do Seixal, Arrentela e Aldeia de Paio Pires

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Overview

2-bedroom, 1-bathroom apartment of 69 m² on the 3rd floor, built in 1967, energy rating E. Located on rua Ilha das Flores, União das Freguesias do Seixal, Arrentela e Aldeia de Paio Pires parish, Seixal municipality, Setúbal district. Noteworthy Feature: The apartment features a spacious balcony ideal for outdoor relaxation, enhancing the living experience while taking advantage of the region's ample sunshine.

Financial Summary

The valuation. The asking price of €239,000 is 9.3% above the fair value of €218,639, indicating that while the property is valued close to market standards, it is not considered undervalued. This places it at a fair valuation. Buy-to-flip angle. A buy-to-flip strategy could be based on cosmetic renovations targeting a resale price that capitalizes on market demand in Greater Lisbon, potentially yielding a profit if executed effectively. Buy-to-let angle. The estimated rental income of €836 per month offers a gross yield of 4.2%, making it a viable buy-to-let investment in the family-oriented neighborhood benefiting from good transport links.

Investment Thesis

Long-term rental This property offers a fair yield of 4.2%, making it a stable option for long-term rental in a suburban environment of Greater Lisbon. Given its fair value relative to the listing price, it can serve well for tenants looking for affordable housing in a family-oriented community. Family rental With its suburban characteristics and decent neighbourhood rating of 66/100, this 2-bed apartment is suitable for family rentals. The fair price positioning allows for competitive pricing while attracting stable, long-term tenants. Buy-and-hold As a buy-and-hold investment, this property aligns with a fair valuation while positioned in a growing area of Greater Lisbon, likely maintaining its value over time. The low condition score, however, may require future renovation efforts to maximize appreciation. Not ideal for luxury market This property has characteristics that do not align with luxury market demands, thus making it less likely to attract high-end buyers or tenants. Its suburban nature and fair valuation suggest it is more aligned with the middle-class demographic. Not ideal for short-term vacation rental Given the neighbourhood's profile and fair valuation, this property is not suited for short-term vacation rental strategies. The suburban setting and tenant quality are not conducive to the typical tourist market. Not ideal for student housing The demographics of the area do not cater well to student populations, limiting the potential for student housing investments. The property's suburban location and fair resident ratings further reinforce its unsuitability for this strategy.

Risks

Potential Tenant Turnover The tenant stability score of 60/100 indicates a considerable risk of tenant turnover, which can lead to increased vacancy rates and associated costs.

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