Investments

Investments
Invest for Resale
For those looking for a short-term return on investment, this may be the best investment. You should be aware of some crucial factors that differentiate a good investment from a bad investment.
. Buy at a good price and if possible in the low market;
. Get a good budget of works, with good material;
. Have a reliable construction team.
Practical example (Private):
3 bedroom apartment, with 105 sqm located in a building with elevator and excellent location in the city of Lagos.
Information |
Price/Value |
For Sqm |
Acquisition |
€180.000,00 |
€1.714,00 |
IMT |
€4.436,88 |
|
IS (0,8%) |
€1.440,00 |
|
Deed |
€500,00 |
|
Works w/VAT (6%) |
€21,200,00 |
€302,86 |
Total Cost |
€207.576,88 |
|
Venda |
€270.000,00 |
€2.285,71 |
Sale Commission w/VAT (23%) |
€15.000,00 |
|
IRS |
€9.779,58 |
|
Net Result |
€37.643,54 |
€358,51 |
Investing for Annual Lease
Given the current demand, and the limited supply, it is still a good investment to buy properties to rent. It is a safe and constant recipe. There are some factors to take into account when buying the property.
. Buy at a good price and if possible in the low market;
. Choose a property with low condominium expenses;
. If you need works, get a good budget and have a reliable construction team.
Practical example (Private):
2 bedroom apartment, located in a residential area, without elevator with 98sqm.
Information |
Price/Value |
For Sqm |
Acquisition |
€160.000,00 |
€1.632,65 |
IMT |
€3.283,84 |
|
IS (0,8%) |
€1.280,00 |
|
Deed |
€500,00 |
|
Works w/VAT (6%) |
€12.720,00 |
€129,79 |
Total Cost |
€177.783,84 |
€1.814,12 |
Monthly Income |
€850,00 |
€8,67 |
Annual Income |
€10.200,00 |
|
Gross Yield |
5,7% |
|
IRS (26%) |
€2.652,00 |
|
Condominium |
€276,00 |
|
IMI |
€366,30 |
|
Net Monthly Income |
€575,48 |
€5,87 |
Net Annual Income |
€6.905,7 |
|
Net Yield |
3,9% |
|
* YIELD - measure of profitability
Calculation = Income (Annual) / Property Value
Investing for Local Accommodation
The Algarve continues to be a highly sought after destination. Not only in the high season (summer months) but also in the low season for tourists who prefer the calm of those months or investors. Revenues end up being higher than the annual lease, given the periodicity of the leases. There are some factors to take into account when buying the property.
. Buy at a good price and if possible in the low market;
. Reduced annual maintenance cost (condominium);
. If you need works, get a good budget and have a reliable construction team;
. Logistics involved and time consumed by the operation;
. Containment zones and legal changes on the LA.
Practical example (Private):
1 bedroom apartment, located in a closed condominium with swimming pool and a few minutes from the beach, with 107 sqm.
Information |
Price/Value |
For Sqm |
Acquisition |
€170.000,00 |
€1.588,78 |
IMT |
€3.783,84 |
|
IS (0.8%) |
€1.360,00 |
|
Deed |
€500,00 |
|
Works with VAT (6%) |
€0,00 |
€0,00 |
Total Cost |
€175.643,84 |
€1.814,12 |
Daily |
€80,00 |
€8,67 |
Occupancy Rate |
70% |
|
Monthly Income |
€1.680,00 |
€15,70 |
Annual Income |
€20.160,00 |
|
Gross Yield |
11,4% |
|
IRS (Depends on Step) |
€2.182,76 |
|
Condominium |
€744,00 |
|
IMI |
€409,24 |
|
Booking Platforms |
€780,00 |
|
Cleaning |
€1.200,00 |
|
Maintenance Expenses |
€300,00 |
|
Communications |
€360,00 |
|
General Expenses* |
€1.080,00 |
|
Net Monthly Income |
€1.092,00 |
€10,20 |
Net Annual Income |
€13.104,00 |
|
Net Yield |
7,5% |
|
* Water, Electricity, Gas
** Attention: All values are fictitious, not for comparison.
If you are thinking about investing in the real estate market, contact us.