126 994.00 €
Type: Buy to Let
Interest payment schedule: Monthly
Min. amount of investment - € 100
Update from the originator:
The project Buenos Aires is still a work in progress. The originator is doing works on the apartment and getting it ready for the tenants.
As soon as the apartment will have the first tenants, the originator will pay the 5% per year interest for the funding/waiting period.
|Criteria||From a+ to d||Project rating|
Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Why invest in this apartment?
Acquired with a strong discount compared to the price of February 2020:
With a discount of 30 thousand euros.
Much demand for furnished apartments in Cádiz
both for long, medium stay or as a vacation rental.
The property with the cheapest price per square meter
Despite its excellent location
Information about the apartment
At Brickstarter we don't stop and we continue to take advantage of the current moment of uncertainty to buy cheaply now what we know will be worth much more in just a few months. We return with another opportunity for which we have negotiated a strong discount of 30,000 euros compared to the initial sale price. It is important to note that, despite being an excellent property in terms of location and typology, we are facing the cheapest price per square meter that we have acquired so far.
The objective of this property is to acquire, reform and furnish it and obtain all vacation licenses (since it complies with all regulations), but prepare it for the mid-stay rental until the vacation business recovers. A business model that is working for us with the rest of our properties.
In this way, it has been assumed that the apartment will be rented on a half-stay basis from October to May and as a holiday apartment from June to September, throughout the 4 years of the project. In other words, we assume that the holiday market will not recover during the 2021-2025 period , in our opinion, a very conservative assumption.
If the holiday market recovers and we can exploit the holiday apartment, the yields will be even higher, and given the increase in demand for this type of property, its price will increase significantly, anticipating the sale.
The main characteristics of this opportunity are:
Acquired 25% below the initial sale price in February 2020. It is the property with the cheapest price per square meter of those acquired so far.
Location: Located in the historic center of Cádiz, the favorite area for tourists, students and officials. It is very close to universities (more than 26 thousand people between students and workers) and with a high current demand for half-stay apartments.
Typology: It is an apartment with one bedroom, one bathroom and a spacious living-dining room with an integrated kitchen. It is a very spacious and bright property, which even has a small dressing room. Located on a recently renovated ground floor, it meets all the requirements to obtain a vacation license. An option that we will exploit when we consider it appropriate.
A discount of 30 thousand euros
of all Brickstarter opportunities
with the possibility of alternating with vacation obtaining additional profitability
Once again, we take advantage of the current situation to acquire a property with a strong discount on the sale price of just a few months ago.
Located on the ground floor, we are facing a spacious property, very bright due to its large windows. It has a spacious living room to which we will incorporate the kitchen to providing more space. Likewise, it has a large bedroom, with a bathroom and a small dressing room. The property is located in a building that is in perfect condition as can be seen in the photographs.
The whole house is exterior and has a lot of light. With high ceilings and exposed beams, it is a very attractive apartment that cannot be rented.
The distribution and its location are perfect, both for students and professionals of all kinds. It is perfect for vacation, spacious, bright and very photogenic.
Due to its characteristics, and its capacity for up to 4 people, it can accommodate couples, or even small families or groups of friends, in its holiday model.
At Brickstarter we are aware that the 3 most important characteristics of a property are “location, location, location”, and in this sense we can rest assured that the property is located in the historic center very close to the rest of our opportunities.
The location is perfect for students, workers and tourists. The walking distance to the main points of interest, according to Google Maps, is:
Plaza San Antonio: 1 Minute (110 meters)
Mina Square: 1 minute (110 meters)
Alameda Apodaca Gardens: 1 minute (81 meters)
Plaza de España: 5 minutes (400 meters)
University of Cádiz: 5 minutes (400 meters)
Faculty of Philosophy and Letters: 5 minutes (450 meters)
Faculty of Medicine: 7 minutes (550 meters)
La Salud Hospital: 7 minutes (550 meters), San Rafael Clinic: 7 minutes (650 meters) and Women's Hospital, 8 minutes
Purchase price of the property (incl. Reform)
Cost of initial works
Taxes, paperwork and other initial legal costs
Company Constitution and Registration
Other costs of Acquisition of the property
Minimum safe box
Brickstarter Fees (Purchase Only)
Annual rental income
Amount to receive for the sale
Gross Margin (Sale price - Buy price)
The data shown in this section is a forecast for one year after the purchase of the property
Total accrued dividends
Dividends in portfolio
Result of exploitation
Profit before tax (Operating profit + Financial profit)
Result of the exercise
Revaluation of the property
The current value of the property
Number of reservations
Degree of occupation
Average rate per day
Annual revenue estimate
Customer satisfaction rating
Number of invites
Assumptions of the business plan:
To carry out our business plan, we have assumed that, throughout the life of the project, it will be rented on a half-stay basis during the periods of October to May, and will be rented on a holiday rental basis during the summer months from June to September (included). The model that we are currently using and is working.
In other words, we start from the premise that the vacation rental will not be recovered at any time. A conservative assumption since, if we can rent the apartment on a vacation basis throughout the year at least in 2023 and 2024, the income and profitability of the project would increase considerably. (The month with the highest holiday income in Cádiz is February, due to the carnivals).
It is also important to take into account the characteristics of the real estate market in Cádiz, where the land is geographically limited (it is a peninsula), and there is a high demand due to the presence of universities, hospitals and other public bodies (City Council, etc..).
Finally, add that the historic center of Cádiz is the main tourist attraction of the city, since it is there where the main tourist attractions are located, the Cathedral, La Torre Tavira, the Gran Teatro Falla.
Half-stay rental (October - May):
To estimate the half-stay income, we have taken as a reference the income at which we have rented our current apartments, specifically our opportunity at "La Caleta" (smaller apartment without terrace), rented for 530 euros per month.
Only the presence of the University of Cádiz, with more than 20 thousand students and almost 5 thousand employees among professors and other service professionals, causes a high organic and stable very high demand, which absorbs all the supply. If we do a quick search on Idealista (the leading portal in Spain), and we look for furnished apartments in the historic center, we find only 109 properties.
Holiday rental (June-September)
Even this year, with the COVID crisis, vacation rentals this year have worked very well in Cádiz (in Brickstarter in terms of income it has suffered a drop of only 5% compared to 2019), and even in low season, we are having occupancy rates much higher than those we have in other areas such as Valencia, Seville, Malaga or even Alicante.
To estimate the income of the vacation months, we have taken as a reference the income obtained in the vacation regime in 2020, the year of the covid.
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|22.05.2021||Paid||No||11 May 2021, 14:16|