169 233.00 €
Type: Buy to Let
Interest payment schedule: Monthly
Min. amount of investment - € 100
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Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
We really wanted to return to one of our favourite cities, and we are delighted to do so at the hands of this excellent penthouse, which will undoubtedly delight our guests.
The real estate market is totally fired and it is increasingly difficult to find good opportunities and more at this price. To do this, we had to make an offer, not for the attic but also for the rest of the building, and thanks to this we have managed to lower the price of the operation in terms of cost per square meter.
The fact of acquiring the building, which we will publish in its entirety exclusively on Brickstarter, will bring us other advantages in addition to reducing the total cost of the operation, such as avoiding regulatory problems with vacation licenses, and above all avoiding problems with neighbours.
Likewise, we consider that it will be easier to rent, since having several units in the same building we will be able to receive larger groups who will also be attracted by the attractiveness of the terrace. This is what we do in other opportunities such as Bolsería, which allows us to establish an occupancy rate escalation that allows us to maximize income.
The property in question, the attic, has a series of characteristics that make it very attractive, not only for the tourist market, but also for the medium and long-term market.
It has 3 double bedrooms, all with their private bathroom, American kitchen with large living room and a large terrace that will undoubtedly be the photo of the apartment. It is a large property (140 square meters) and very well distributed in 3 heights.
It is a very well located property, one step away from the historic center, close to Santa Bárbara Castle, Postiguet Beach and the Central Market. Perfect for both the vacation and the medium and long stay.
We are facing an excellent property of 128 square meters, with 3 bedrooms and 3 bathrooms in suite, an American kitchen and a splendid terrace.
The main reasons why we think it is an excellent investment are:
Price: € 977 / m2 very cheap, taking into account that the price per square meter of apartments to be renovated is already 1259 euros.
Tourist License: Despite being outside the historic center, we can obtain the tourist license since we will control the entire building. This will greatly revalue the property, since, except for these exceptions, you can only obtain a vacation license in the historic center where the price per square meter is 2529 euros, as we can see here. This fact will allow us to revalue the property considerably.
Status: The property is practically new since it was built in 2015. In fact, the apartment on the first floor is original and you have to put the kitchen in it.
Versatility: We find a type of properties in high demand for both the holiday and short-stay markets, since they are spacious properties, with one bathroom per room, something in high demand also for the Coliving typology.
Typology: The penthouses with terraces are the most demanded properties in the vacation, and more for large groups, since they can meet and thus enjoy the magnificent climate of Alicante.
Potential: The entire building has a lot of potentials. With 70 meters of floor and 3 heights, the building can be divided at any time into 3 individual apartments. In this case, the apartment would cost 70 thousand euros per unit. (The average price in that area for similar apartments is as you can see here.
Location: the location of the property is excellent, very close to the historic center and the main points of interest in the city of Alicante. It is literally just 7 minutes walk from the historic center according to google maps. The main walking distances, according to google maps, are:Central Market: 5 minutes walk. Historic Center: 8 minutes walk. San Juan neighbourhood: 10 minutes walk. Town Hall Square: 15 minutes on foot. Postiguet Beach: 19 minutes walk
Additionally, according to the urban plan, an additional height could be built, with which we could still obtain a new apartment. Although we are not going to develop it, this option gives even more value to the property.
Purchase price of the property (including reform)
Cost of initial works
Taxes, paperwork and other initial legal costs
Incorporation and Registration of the Company
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
Result of exploitation
Result of exploitation
Result of the exercise
Profit before tax (Operating profit + Financial profit)
Result of the exercise
Revaluation of the property
Current value of the property
Number of reservations
Degree of occupancy
Average rate per day
Annual revenue estimate
Customer satisfaction rating
Number of invites
First of all, we must clarify that we are working with pre-pandemic statistical data.
There is still no reliable data, and one of the key questions will be how the pandemic will affect, not only the demand for tourist flats but also the supply since many owners have been forced to stop exploiting your apartment touristically to obtain a more stable and recurring income.
At Brickstarter, we are professionals in the sector, and although we are waiting for a data update, we expect a general increase in occupancy and income due to a contraction in a supply greater than the contraction in demand. caused by the crisis. Obviously it will be a medium-term effect since the market will tend to self-regulate.
Finally, it must be taken into account that having another apartment in the building, which we will also manage (and publish on Brickstarter), will cause a series of positive synergies that will foreseeably improve the performance of the attic even more.
Neither of these two points has been considered for our analysis.
As we have mentioned, the property in question has unconventional characteristics, since it is an attic with a large terrace, large (with capacity for up to 8 guests) and very well located.
Due to this, and with the aim of expanding the statistical sample, we have decided to take into account the properties with 3 bathrooms, regardless of their capacity, since otherwise, we would work with too small a sample.
As we can see in the first graph, the first thing that stands out is the positive trend both in income and in the average occupancy of the properties.