119 936 €
Type: Buy to Let
Interest payment schedule: Monthly
Min. amount of investment - € 0
|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.
Excellent opportunity in Alicante, with the price per square meter more so far for this type of economic property (25% percent below current sale prices) with a bathroom and a patio that will delight our guests due to its excellent location.
Given these opportunities do not exist in the market, we have had to “manufacture” it by acquiring and redistributing the entire building, which will also not avoid having regulatory and neighbourhood problems for the acquisition of the vacation license.
Likewise, this opportunity will benefit from the attic located above it, since we can combine them and increase the average income per guest since the offer of such wide opportunities is scarce and in these cases, the rate per guest is higher.
The apartment enjoys a privileged location, a few meters from the historic center, 5 minutes walk from the Central Market.
Likewise, on this occasion, we will add a lot of value to the property since we will be able to opt for a tourist license (by having the entire building) in an area where the apartments are limited by regulations. This will undoubtedly increase the value of the property, which will also benefit from the possibility of increasing the constructed area, through the construction of a new apartment above the attic.
In the present opportunity, we find ourselves in front of a spacious property , of almost 70 square meters, which also has a large interior patio , which will undoubtedly be the photo of the apartment. We will decorate the patio in a timely manner, since we are aware of the value that the guests will give it.
Despite being the ground floor, it is a very bright property, and we will adapt it to accommodate up to 4 guests.
The fact of acquiring the entire building is what has allowed us to obtain the apartment at a very competitive acquisition price.
Being part of a building totally controlled by Brickstarter, we will have no problems obtaining vacation licenses, taking into account the current Alicante regulations. We also consider that by being part of a property, the sale will be easier, since we can sell it together or individually as it suits us.
The main reasons why we think it is an excellent investment are:
Price: € 1214 / m2 very cheap, taking into account that the price per square meter of apartments in that area is to be renovated is already 1617 euros.
Tourist License: Despite being outside the historic centre, we can obtain a 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. This fact will allow us to revalue the property considerably.
Status: The property is practically new since it was built in 2015. It is a brand new property, in fact, we will have to install the kitchen since the apartment has never been inhabited.
Versatility: We find a type of properties in high demand for both the holiday market and the medium and long-term market, since it is a spacious property, very well distributed and with an excellent location.
Typology: One bedroom and one bathroom apartments are the most demanded by tourists as they are suitable for an individual traveler, a couple, and even small families and groups of friends. The fact of having a patio will make it very attractive and stand out from the rest.
Potential: It is a property with a lot of potential, not only due to its characteristics and price, but also due to the fact that it can be combined for its management and / or sale with the attic located above it.
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 are:
Central Market: 5 minutes walk.
Historic Center: 8 minutes walk.
San Juan neighborhood: 10 minutes walk.
Town Hall Square: 15 minutes on foot.
Postiguet Beach: 19 minutes walk
Additionally, according to the urban plan, and in the same building, an additional height could be built, with which the future buyer could build an additional apartment.
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 excersice
Profit before tax (Operating profit + Financial profit)
Result of the excersice
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
In this way, we consider that working with these data is a conservative assumption since the transfer of apartments that has been from vacation rental to long-term rental includes minimum rentals for a period of 5 years, so, although we will see a new transfer to the vacation rental, this will not be immediate.
For our analysis we have taken data from apartments with a maximum capacity of 4 guests in the vicinity of the historic center. As we know, small groups of travelers (between 2 and 4 guests) constitute the largest type of travelers. Likewise, and despite the fact that with the properties that they demand are the smallest, and by area the most economical, we see how the supply has not been able to compensate for the demand, producing a constant increase in prices and indexes of occupation of this type of property.
Regarding the seasonality of demand, once again, we see how the months most in demand are those included in the summer period. However, as we already know, both from the data and from our previous experience, the demand is constant throughout the year, so, despite the seasonality, we will ensure a minimum income every month of the year.
It must be remembered that we find a property that has an interior patio, a feature highly demanded by clients who travel to Alicante in search of good weather. The patio will be the photo of the apartment, the most important room and will make it stand out from other properties of its competition. In fact, within our analysis, it has been difficult for us to find similar properties, since properties with terraces are scarce.
Finally, it is important to point out that we have not taken into account, for our income forecast, the positive synergies that will be generated with the property located on the upper floor and that will allow us to combine them to accommodate larger groups, increasing average income per guest.
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