108 625.98 €
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.
Finally, we are back with our latest opportunity in Cádiz, one of our favorite cities. After selling 8 of our apartments in June, we´ve been looking constantly in order to find new opportunities with no luck. Prices of real estate in Cadiz have skyrocketed and it´s getting harder and harder to find good opportunities. Fortunately, all our hard work has paid off with this new fantastic opportunity.
Very well located in Barrio de la Viña (the best neighborhood in down town) we have found a small but complete apartment that it is already listed in Airbnb with 4.85 star reviews (out 5.00 stars)
It is located at Pasquin Street 5, Cádiz, on the ground floor. It is a one bedroom, one bathroom apartment with living room and complete kitchen. Location is perfect very close to the “Caleta” beach, the Cathedral and the rest of monuments.
This cozy apartment has everything a tourist is looking for: perfect location and perfect appliances. As we are buying the apartment fully equipped, we will be able to start renting it from day one, getting the first guests in no time. The apartment has its valid tourist license.
This is one of the cheapest opportunities we have ever bought in Cadiz, and therefore we are sure we will be able to sell it soon to a final investor.
This apartment is fully equipped and we will be able to receive our first guests in no time. This property is a great investment due to:
|Purchase price of the property (including renovation)||96.600,00 €|
|Cost of initial works||3.000,00 €|
|Taxes, paperwork and other initial legal costs||0,00 €|
|Company Constitution and Registration||0,00 €|
|Other property acquisition costs||1.113,20 €|
|Other expenses||0,00 €|
|Minimum cash||600,00 €|
|Brickstarter Fees (Only purchase)||7.311,78 €|
|Yearly rent income||14.359,51 €|
|Amount to be received for the sale||124.918,73 €|
|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||14.359,51 €|
|Brickstarter Commission||821,02 €|
|Annual Property Tax||281,50 €|
|Total expenses||6.970,37 €|
|Operating return||7.278,74 €|
|Financial results||0,00 €|
|Result before tax (Operating result + Financial result)||7.278,74 €|
|Net profit||6.186,93 €|
|Revaluation of the property||15,00 %|
|Current value of the property||110.325,00 €|
|Number of reservations||406|
|Occupancy rate||444,77 %|
|Average Daily Rate||8,85 €|
|Estimated annual income||14.359,51 €|
|Customer satisfaction rating||90,00 %|
|Number of guests||2029|
From our large experience managing vacation rental properties, we already know this is a good investment.
The land is geographically limited in Cádiz (it is a peninsula), and there is a high demand due to the presence of universities, hospitals, and other Government offices (City Council, etc..).
Therefore, we can even rent this apartment as a mid-term rental and get almost our rental goal yield only renting this property to tourist only the months of July and August.
Downtown Cádiz is the main tourist attraction in the city, as it is there where the main tourist attractions are located, the Cathedral, La Torre Tavira, the Gran Teatro Falla. From all the different districts of downtown, Barrio de la Viña is the best one.
We know that we can get the most of it renting this property as a vacation rental property, and this apartment is perfect fot it.
For our analysis, we are going to study the revenues and occupancy rate of all Airbnb listings similar to this one: one bedroom and one bathroom apartment located in Barrio de la Viña in Cádiz downtown.
As we can see, we´ll be working with a large sample:
As we can see in the previous graph, the properties similar to “Pasquín” have yearly average revenues of 15766 euros. The holiday high season starts in February until the end of October, being the rest of the months (November to January) the low season. Yearly revenues have been increasing since 2016 due to the growing importance of the national tourism in Cádiz, a city that is becoming more and more popular between Spaniards.
In this second graph, we can see a growing trend in the evolution of the occupancy rate and revenues. Tourism in Cadiz is growing as being a peninsula the land is scarce, increasing the occupancy rates and average daily rate.