The apartment on its own, not considering the potential attic space which would add another 71,80 m2 to the property, stacks up on its own as a fantastic opportunity and cash-cow investment.
The existing build size (GBA) of the apartment is 96,26 m and the seller is looking for just 315.000 €. We estimate that is would cost you about 40.000 € to completely renovate the property to a very high standard.
This would translate to just 3.687 € per m2 for a fully renovated property just off Avenida da Liberdade which would give you much enjoyment and pride to renovate.
Renovated apartments in the area sell for 6.000 € per m2,
Thus, considering just the existing GBA and just 5.000 € as the end selling price per m2, this apartment will be worth 480.000 € on completion (not considering the 5 year appreciation while you need to hold it)… leaving you with a very generous 125.000 € profit… and a fantastic income-generating property.
In terms of income-generation and considering that you would opt for short-term rentals (recommended) and an average daily rate of 140,00 € with a conservative occupancy rate of 85,00%, the gross rental yield is an impressive 12,24% per annum.
Considering the same 30,00% for management and rental costs, you would net 8,56% per annum, which means that you would claw back your investment in just over 10 years!