Apartment in Santa Maria, São Pedro e Matacães

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Overview

3-bedroom, 2-bathroom apartment of 89 m² on the 5th floor, built in 1997. Located on rua Doctor Manuel Lopes Correia Bloco, 3, 5ºI, Santa Maria, São Pedro e Matacães parish, Torres Vedras municipality, Lisbon district. Noteworthy Features: This apartment features newly installed double-glazed windows for improved noise reduction and energy efficiency, along with a recently renovated kitchen equipped with high-quality appliances.

Financial Summary

The valuation. The asking price of €299,800 sits €9,999 (3.5%) above the fair value of €289,801, indicating that the property is priced right at the market value. This suggests a balanced price for potential buyers. Buy-to-flip angle. The potential for a buy-and-flip strategy exists as minor renovations, particularly in the kitchen, could enhance appeal and raise resale value significantly. Investors could capitalize on the neighborhood's steady demand for updated apartments. Buy-to-let angle. With an estimated gross yield of 3.8%, offering rent of approximately €949/month supports a reliable buy-to-let avenue, which can provide steady cash flow. This aligns well with the area's relatively stable economic condition.

Valuation

Fair value modelled at €289,801 from 6 comparable sales in the area. Asking €299,800 sits €9,999 (3.5%) above — overpriced versus fair value.

Investment Thesis

Long-term rental This property offers a competitive gross yield of 3.8%, providing a reasonable income stream for long-term investors in a stable suburban area. While the property is priced fairly at €299,800, the moderate neighbourhood score of 58/100 suggests limited growth potential in tenant demand. Buy-and-hold The property in Santa Maria presents a fair value of €289,801, which indicates it won’t present significant price appreciation opportunities in the near term. With the local economic and schooling conditions being relatively stable, this investment is well-suited for a buy-and-hold strategy focused on steady income over time. Value-add renovation Given the condition rating of 68/100, this property may require targeted renovations to enhance its appeal and tenant quality. However, with a fair valuation at €299,800, any improvement costs should be carefully weighed against expected returns, as substantial increases in property value may not be realized immediately. Not ideal for luxury market The €299,800 price point aligns with a standard suburban offering rather than a luxury property, which may limit its appeal in higher-end markets. Additionally, with a neighbourhood score of 58/100, the property may not attract luxury buyers seeking premium features and exclusive amenities. Not ideal for short-term vacation rental The suburban nature of Torres Vedras may not cater to the demands of the short-term vacation rental market, which typically requires high foot traffic and tourist appeal. The fair valuation suggests that returns from this strategy could be inferior compared to alternatives, diminishing its investment viability. Not ideal for student housing With a neighbourhood score of 58/100 and limited local amenities, this property is not well suited for the student housing market that often thrives on accessibility and social opportunities. The property's fair value signifies that it is better positioned for stable occupancy rather than the fluctuating demand characteristic of student rentals.

Risks

Economic and Tenant Instability The property faces a moderate risk due to both an economic stability score of 55/100 and a tenant stability score of 55/100, indicating potential challenges in maintaining consistent rental income and occupancy rates.

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