148 031.00 €
Type: Buy to Let
Interest payment schedule: Monthly
Min. amount of investment - € 100
|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.
We are back with this new investment opportunity in Alicante. This a new penthouse with a huge private terrace with fantastic views to the Santa Bárbara Castle, that our guest will love.
This will be probably one of our busiest properties in Alicante due to its location, typology, and views. The apartment has two private terraces (one is huge, more than 30 square meters) overlooking the Santa Barbara Castle.
The property may remind us of our opportunity "San Isidro Penthouse", but the difference is that it has two private terraces and it is closer to the beach. The property we are concerned about is a loft with a living room, kitchen, bedroom, bathroom, and two private terraces: the first is at floor level, and the second is on the roof of the building. Ideally located in the historical center, close to the main point of interest the city and only a few meters from “El Postiguet” beach.
Although it is very close to many restaurants and bars, the apartment is located on a quiet street.
The apartment is currently holding a vacation rental license.
We are dealing with a great opportunity. This apartment is (almost) in perfect condition and we will be able to receive guests from the very first day.
Furthermore, this is a good opportunity for other reasons. This apartment has some unique features:
Its huge private terrace with stunning views of Santa Barbara Castle is second to none. It also has a smaller terrace close to the kitchen, perfect for dining outside.
The location is perfect. It is right in the historic center, surrounded by restaurants, bars and the main point of interest of the city. It is a 5-minute walk from the beach and major tourist attractions. “Casco Histórico” is the highest occupancy rate district in Alicante.
This apartment has been used as a vacation rental property before, and based on our previous experience in Alicante, we are convinced of the profitability of the property.
The apartment is fully equipped and in good condition, but we will improve the interior decoration of the property, and especially both terraces.
Although it is located in the busiest area of the city, the apartment is located on a quiet street. During the day, you just need to open the balcony to enjoy the sun and breeze, and then walk down the street to enjoy the city's best restaurants and bars.
The apartment location is key to understand its value. Its distance to main points of interest are:
San Nicolás Cathedral: 210 meters / 2 minutes walk.
Plaza del Ayuntamiento: 220 meters / 3 minutes walk.
Plaza de Santa María: 300 meters /4 minutes walk
Central Market: 390 meters / 5 minutes walk.
“El Postiguet” beach: 600 meters / 7 minutes walk.
Santa Bárbara Castle: 850 meters / 14 minutes walk.
|Purchase price of the property (including renovation)||132.000,00 €|
|Cost of initial works||4.000,00 €|
|Taxes, paperwork and other initial legal costs||0,00 €|
|Company Constitution and Registration||0,00 €|
|Other property acquisition costs||1.452,00 €|
|Other expenses||0,00 €|
|Minimum cash||600,00 €|
|Brickstarter Fees (Only purchase)||9.979,02 €|
|Yearly rent income||17.581,72 €|
|Amount to be received for the sale||170.235,67 €|
|Gross Margin (Sale Price - Purchase Price)||15 %|
The data shown in this section is a one year forecast after the property purchase
|Total dividends accrued||0,00 €|
|Dividends paid||0,00 €|
|Dividends in portfolio||0,00 €|
|Rental income||17.581,72 €|
|Brickstarter Commission||1.046,57 €|
|Annual Property Tax||281,50 €|
|Total expenses||8.162,59 €|
|Operating return||9.275,13 €|
|Financial results||0,00 €|
|Result before tax (Operating result + Financial result)||9.275,13 €|
|Net profit||7.883,86 €|
|Revaluation of the property||15,00 %|
|Current value of the property||148.532,00 €|
|Number of reservations||61|
|Occupancy rate||66,87 %|
|Average Daily Rate||72,04 €|
|Estimated annual income||17.581,72 €|
|Customer satisfaction rating||90,00 %|
|Number of guests||305|
First, it is important to remark that we are working with pre-pandemic data for this business plan as there is no reliable data yet.
Although we need to analyze how the supply and demand of vacation rental properties have been reduced due to the pandemic, from our experience we can assume that the overall level of occupancy and revenues will be closed to what we could expect back in 2019.
For this analysis, we have to consider the uniqueness of this apartment due to its location and typology. These kinds of properties are always scarce and they are the most demanded kind of apartments.
We must consider that being a one-bedroom, one-bathroom apartment with a kitchen a living room, we will be able to host up to four guests, which is perfect for couples, families, and even small groups of friends.
As we can see in the first graph, there are only a few properties with these characteristics: a one-bedroom building in the historic center, a bathroom, and a terrace.
As observed, there is a strong upward trend in both average occupancy and income rate. In graph 2 we can see that despite the logical seasonality, the average income throughout the year is very high, being the worst month January and the best one, August.
Finally, we can conclude that this property has a terrace, views, and location similar to our opportunity “Ático San Isidro” being one of our busiest properties, and easier to rent due to its views. Furthermore, this property is larger and can host two more guests, despite being cheaper.
|15.10.2021||Paid||No||13 October 2021, 18:44|