Ático Santo Domingo

 Buy to Let
Spain
5.33% + 4.28%
Annual yield
Interest payment schedule:
Monthly
Interest payments
29.05.2020
Repaid

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EvoEstate description

29.05.2020 Brickstarter has cancelled this project, while distributing 5% XIRR interest payment.
 

Brickstarter has informed, that the project will continue to fundraise until the end of May. The interest is being calculated from the moment you invest, therefore all of the investors who have already invested will receive a 5% XIRR promotional return, for the fundraising period once the property is funded.

Another buy to let investment from Brickstarter in Cadiz. The property is expected to generate a Gross Rent Income of 11.63%. Brickstarter already manages properties in Cadiz, one of the risks of this project is that the property does not have an Airbnb license now. However, Brickstarter has experience with obtaining an Airbnb license and Cadiz is not that challenging to obtain one compared to the other Spanish cities. 

Descripton

Why invest in this apartment?

  • Cadiz, one of the most profitable cities
  • Better relationship between revenues and cost
  • Large and beautiful terrace
  • Penthouse with large terrace and barbecue
  • High IRR = 9.61% and high cash on cash ratio

Information about the apartment

We are back in Cádiz with another great opportunity! It is a fantastic penthouse in the neighborhood of Santa María in the old town of Cadiz, the most demanded part of the city by tourists.

It is a 45 square meters penthouse with an outstanding terrace. It is a one double-bedroom, one-bathroom apartment, with a complete kitchen (even a dishwasher), and a living room. The large terrace will be the most iconic picture of the apartment. There are no that many penthouses in downtown Cadiz, and that´s why these kinds of apartments are the most demanded ones. It is the perfect apartment to host up to 4 guests.

The apartment is in the heart of Cádiz. Downtown Cadiz is a small peninsula (2 square kilometers) where the land is short, and all the main attractions are. Full of restaurants and bars, it is where “Caleta Beach”

The apartment is just a 7-minute walk from the Cathedral, the City Hall and “Plaza de San Juan de Dios”, the main square of the City, the perfect spot to enjoy the Cadiz´s Carnival and Semana Santa.

As you know Cádiz is one of our favorite cities to invest in Spain due to its high profitability ratio, and we couldn´t miss this opportunity as penthouses are so scarce due to their high demand.

Taxes in Andalucía (Cádiz) are also lower than in other regions when buying a property which also facilities rotation. The property is in excellent condition, we just need to buy some small decoration, and will be hosting a guest in a matter of days

Project summary

We present a fantastic investment opportunity due to the fact that this apartment has a great revaluation potential, and it´s going to offer a high occupancy rate and high cash on cash ratio:

  • Penthouses with terrace are a very rare kind of apartment in Cádiz. Wealthy people used to live in the lower stories, and it didn´t make any sense to have a terrace back then. Things have changed now, and tourists come to enjoy the good weather and they love to enjoy their private terrace. This is why they are so hard to find.
  • The terrace will be the presentation of the apartment and will let us offer more exclusive services like a barbecue. This will let us differentiate ourselves from other properties and target high-level guests.
  • The apartment is in excellent condition. With all the facilities (air conditioning, dishwasher, washing machine….), we just need to buy some decoration and it will be ready in no time.
  • The apartment is exterior, with lots of natural light.
  • It is in Cádiz downtown, the most demanded area by tourists, as it is surrounded by all the monuments and bars. The apartment is 400m away from the Cathedral, and a 10 minutes’ walk from the most exclusive beach in Cádiz “La Caleta”.
  • Due to the exclusivity of the property, we expect higher ratios of occupancy and revenues above the average.
  • The high season starts in February so we will be able to benefit from it.

Operation Summary

ConceptValue
Purchase price of the property (including renovation)158.100,00 €
Mortgage0,00 €
Cost of initial works1.000,00 €
Taxes, paperwork and other initial legal costs0,00 €
Company Constitution and Registration3.100,00 €
Other property acquisition costs937,75 €
Other expenses0,00 €
Minimum cash600,00 €
Brickstarter Fees (Only purchase)11.843,80 €
Total175.581,55 €

Revenues forecast

ConceptValue
Yearly rent income20.415,76 €
Amount to be received for the sale201.918,78 €
Gross Margin (Sale Price - Purchase Price)15 %

Dividends

ConceptValue
Total dividends accrued0,00 €
Dividends paid0,00 €
Dividends in portfolio0,00 €

Operating return

IncomeValue
Rental income20.415,76 €
ExpensesValue
Brickstarter Commission1.244,95 €
Management6.124,73 €
Supplies1.560,00 €
Annual Property Tax281,50 €
Total expenses9.211,18 €
Other amountsValue
Amortization186,00 €
Operating return11.018,58 €

Financial results

ConceptValue
Financial results0,00 €

Net profit

ConceptValue
Result before tax (Operating result + Financial result)11.018,58 €
Taxes1.652,79 €
Net profit9.365,79 €

Investment information

ConceptValue
Revaluation of the property15,00 %
Current value of the property160.000,00 €

Occupation

ConceptValue
Number of reservations74
Occupancy rate80,60 %
Booked days294
Available days61
Blocked days10
Average Daily Rate68,14 €
Estimated annual income20.415,76 €
Customer satisfaction rating90,00 %
Number of guests368

Market study

We are back in Cadiz, one of the most profitable cities in Spain due to its high ratio of revenues and the cost of properties. Since the New York Times selected Cadiz as one of the top destinations in 2019, the number of tourists has skyrocketed, and being a peninsula means that the city cannot grow any further, increasing occupancy and revenues ratios.

Once again, we keep our opportunities in Downtown Cádiz, where the main point of interest are located. The city center is a small area, less than 2 square kilometers, full of monuments, restaurants, and beaches.

bp0

This time we have selected another penthouse as we know it is the most demanded kind of apartment. Our large terrace will help us offer extra luxury services which will help us rent the property.

This is going to be our third penthouse in Cadiz, so we know what we are talking about in terms of figures.

As we can see in the 1st graph there are not that many properties that match our criteria – one bedroom, one bathroom penthouses, in the city center, that can hold up to 4 guests -  and as we can see they are offering higher revenues with an upward trend.

bp1

As we know, Cadiz tourist season is seasonal from February till October, being November to January the lowest months in terms of revenues and occupancy but offering a penthouse will let us increase those ratios even further due to its high demand. As we can see in the best months in terms of revenues will be June, July, and August.

If we look at the monthly average evolution, we can see that there´s an increasing upward trend during these last years. For this kind of apartment, we can expect an average of 1735 euros per month, being the best month August with 2650 euros and the worst November with 737 euros.

bp3

Project originated by:

Documentation

5.33% + 4.28%
Annual yield
Interest payment schedule:
Monthly
Interest payments
29.05.2020
Repaid
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