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

Overview

0-bedroom, 0-bathroom apartment of 85 m² on the 2nd floor, built in 1992, energy rating D. Located União das Freguesias do Seixal, Arrentela e Aldeia de Paio Pires parish, Seixal municipality, Setúbal district. Noteworthy Features: This apartment includes a garage with mezzanine storage, enhancing functionality and providing an adaptable space for various uses beyond traditional parking needs.

Financial Summary

The valuation. There are not enough comparable sales in this area yet to establish a reliable fair-value estimate. Buy-to-flip angle. The apartment's standard builder-grade condition suggests a strategy focused on cosmetic modernization to increase resale value in this suburban location. Buy-to-let angle. With an estimated monthly rental income of €871, this property can deliver a gross yield of 4.1%, appealing for long-term and family rentals.

Investment Thesis

Long-term rental This 0-bed apartment presents a gross yield of 4.1%, appealing for long-term tenants seeking proximity to Lisbon’s economic opportunities. The suburban characteristics of the area contribute to a safe living environment with adequate amenities for residents. Family rental With a neighborhood rating of 67/100, this property is suitable for families looking for a comfortable home near the capital. The apartment’s 85m² size offers adequate living space that can attract longer leases from family-oriented tenants. Buy-and-hold This apartment, located in a suburb with promising economic benefits, represents a stable investment for a buy-and-hold strategy over time. With room for value appreciation in a developing neighborhood, this property has potential for long-term wealth accumulation. Not ideal for luxury market The apartment's condition scoring just 49/100 indicates that it may not align with the expectations of luxury market buyers. Given the suburban setting and housing standards, this property is better suited for more moderate segments of the real estate market. Not ideal for short-term vacation rental The location and apartment characteristics do not align well with the short-term vacation rental demand, which often requires unique amenities and higher appeal to tourists. The low neighborhood rating reflects a likely lack of attraction for visitors seeking vacation accommodations. Not ideal for student housing While proximity to Lisbon may seem beneficial for students, the specific characteristics of the apartment do not meet typical student housing preferences. The lack of multiple bedrooms and communal living spaces may deter long-term student rentals.

Risks

Economic volatility risk With an economic stability score of 65/100, the property may be susceptible to fluctuations that could impact rental income and property value. Tenant turnover risk A tenant stability score of 65/100 suggests potential challenges in tenant retention, which could lead to periods of vacancy and increased turnover costs.

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