Detached house in Rua Pedro Pacheco dos Reis, 20, Montinhos da Luz, Luz
Detached house in Rua Pedro Pacheco dos Reis, 20, Montinhos da Luz, Luz — image 2Detached house in Rua Pedro Pacheco dos Reis, 20, Montinhos da Luz, Luz — image 3Detached house in Rua Pedro Pacheco dos Reis, 20, Montinhos da Luz, Luz — image 4Detached house in Rua Pedro Pacheco dos Reis, 20, Montinhos da Luz, Luz — image 5
Grade B+villamid-range

Detached house in Rua Pedro Pacheco dos Reis, 20, Montinhos da Luz, Luz

Lagos · Western Algarve ·

€990,000

Asking Price (EUR)

4.5%

True Net Yield (Owner, all-in)

3.1%

True Net Yield (Managed, all-in)

7.0%

True Gross Yield

67%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2.1 months ago and is currently at 17% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.75, occupancy cap 67%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €78,505/yr
Average Daily Rate: €322
Payback Period: 15.4 years
5-yr Capital Value: €1.3M
10-yr Capital Value: €1.6M
Brixfox Score: 74 / 100
Comparable Properties: 33
Data Confidence: 91%
Search Radius: 2 km

True Investment Cost

Portuguese transfer tax (IMT) + stamp duty (IS) + notary + registration + legal + renovation + full furnishing & STR launch setup.

€1.1M

+13.4% over asking

Asking price€990,000
IMT — Property transfer tax (investment schedule)€59,400
IS — Stamp duty (0.8%)€7,920
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€14,850
Total acquisition costs€83,420
Renovation (est. €55/m² × 308 m²)
Light touch-ups — paint, fixtures, deep clean.		€16,940
(€9,240–€24,640)
Furnishing & STR launch (3bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€32,200
All-in investment (incl. renovation & furnishing)€1.1M

Gross yield (asking price)

7.9%

True gross yield (all-in)

7.0%

Estimates use Portugal's investment IMT schedule (non-permanent residence). Actual notary & legal vary; budget +€500–1,000 for surveyor, due-diligence and bank-mortgage fees if financing. Renovation cost is a heuristic on property condition × m² — verify with a site visit. Furnishing uses finish-level-tiered rates covering beds, living, kitchen, electronics, AL licence, linens & professional photography. Working capital (2-3 months operating buffer) not included.

Bedrooms: 3
Bathrooms: 4
Building: 308 m²
Land: 18400 m²
Style: portuguese-traditional
Condition: good
Year Built: 2014
Energy Certificate: D
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AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

stone-clad accent wallintegrated fireplacelarge sliding glass doorscobblestone driveway

Score Breakdown

ROI
17.75
Visual Appeal
10
Ownership Security
13
Location
8.4
Land & Space
12
Rental Demand
6.82
Payback Speed
3
STR Suitability
3

Description

HOUSE FOR SALE IN MONTINHOS DA LUZ, LAGOS Discover this charming villa located in Montinhos da Luz, Lagos, with stunning views of the Serra de Monchique. 2 kilometres from the iconic Praia da Luz beach and 6 kilometres from the idyllic Burgau beach, yet 6 kilometres from the historic city of Lagos. This property is id

Location

📍 37.0870°N, 8.7290°W

· Lagos, Algarve, Portugal

View on CENTURY 21 Universe →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Rua Pedro Pacheco dos Reis, 20, Montinhos da Luz, Luz

Inventory
3 Beds
Bathrooms
4 Baths
Built Area
308 m²
Land Plot
18400 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 5.4% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score74
GradeB+
Brixfox Intelligence
74B+Strong
Score Breakdown
ROI & Yield81%
Capital Growth78%
Risk Profile75%
Market Demand74%

The Brixfox Score is our proprietary AI-powered rating that evaluates rental ROI, capital appreciation potential, risk factors, and local market dynamics to give you a single investment quality metric.

Pro members get full score breakdown with AI recommendations
Average annual ROI over 5 years, combining both rental income and property value growth.
Total
+10.9%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$274K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
5.4%
$4,864/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
9 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
18.4 yr
Rental only

Property details

Year built: 2014
Energy: D
Condition: good

Description

HOUSE FOR SALE IN MONTINHOS DA LUZ, LAGOS Discover this charming villa located in Montinhos da Luz, Lagos, with stunning views of the Serra de Monchique. 2 kilometres from the iconic Praia da Luz beach and 6 kilometres from the idyllic Burgau beach, yet 6 kilometres from the historic city of Lagos. This property is id

Income Breakdown

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Nightly Rate (ADR)
$466/night
50% ($214)Brixfox estimate($466/night)200% ($857)
Occupancy
68%
10%Brixfox estimate(68%)100%

Short-Term Rental

Yearly income
$58,369
Airbnb data$466/night · 68% occupancy
Rental income
$466/night · 68% occ.
$115,870
Running costs (20%)
Utilities, cleaning, maintenance
-$23,174
Income tax (10%)
Indonesian rental income tax
-$32,443
Property tax
Annual property tax
-$1,883
Net income
5.4% ROI
$58,369

Long-Term Rental

No long-term rental data available

Not enough comparable rentals in this area

True all-in investment

What the headline asking price actually costs once mandatory taxes, fees, renovation, and furnishing are added. Yields rebased onto this number — closer to what you'll really earn against what you'll really pay.

Asking price$1,076,087
IMT (transfer tax, investment schedule)$64,565
Imposto de Selo (stamp duty)$8,609
Notary & registration$1,359
Legal / due diligence$16,141
Total acquisition costs$90,674
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$18,413
($10,043–$26,783)
Furnishing & STR launch
3bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$32,826
All-in investment$1,218,000

Gross yield (asking)

10.8%

True gross yield (all-in)

9.5%

Estimates use Portugal's standard transfer tax + typical legal/notary defaults. Verify with local counsel before committing — actual fees vary by deal structure.

Growth & Exit Strategy

How your investment grows over time

Freehold — 4%/yr appreciation in Lagos.

$6.6M$5.0M$3.3M$1.7M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $990K
Capital appreciation
Property value growing at +4%/yr based on Lagos market trends.
Rental income
Cumulative net rental earnings collected over time, growing with annual revenue increases.
Total return
Capital value + rental income. Your actual total position if you sold and kept all rent.
Paid back
Year 15: rental income alone has repaid the full purchase price.
2x return
Year 10: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.2M
+22%
Rental Income
+$285K
Total Position
$1.5M
+50%
8.5%/yr
Year 10
Capital Value
$1.5M
+48%
Rental Income
+$616K
Total Position
$2.1M
+110%
7.7%/yr
Year 20
Capital Value
$2.2M
+119%
Rental Income
+$1.4M
Total Position
$3.6M
+265%
6.7%/yr
Year 30
Capital Value
$3.2M
+224%
Rental Income
+$2.6M
Total Position
$5.8M
+482%
6.0%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Good
5.4% annual return
Occupancy
Good
68% average occupancy
Nightly Rate
Strong
$428 per night
Visual Appeal
Good
6/10 instagrammability
Size & Space
Strong
18400 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $428 — positioned in the top tier
Generous 18400 m² land — room for expansion or amenities
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
STR zoning not confirmed — verify before purchasing for short-term rental use

This villa is a strong investment. High rental demand and good returns make it suitable for both active and passive investors.

Risks & What-If

What if occupancy changes?

Owner Managed scenario

48% occ.
5.2%
$4,619/mo
58% occ.
6.3%
$5,611/mo
68% occ.
7.4%
$6,602/mo
current
78% occ.
8.5%
$7,594/mo

Data Sources & Methodology

ROI calculations use verified Brixfox Intelligence rental data from a 12-month trailing window. Opex: 20% owner-managed, 45% fully-managed. Includes 10% Indonesian rental tax (PPh) and annual property tax (PBB). Market factors in Portugal may impact actual yields.