Detached house in Em537, Montinhos da Luz, Luz
Detached house in Em537, Montinhos da Luz, Luz — image 2Detached house in Em537, Montinhos da Luz, Luz — image 3Detached house in Em537, Montinhos da Luz, Luz — image 4Detached house in Em537, Montinhos da Luz, Luz — image 5
Grade Bvillamid-range

Detached house in Em537, Montinhos da Luz, Luz

Lagos · Western Algarve ·

€1.2M

Asking Price (EUR)

3.7%

True Net Yield (Owner, all-in)

2.6%

True Net Yield (Managed, all-in)

5.7%

True Gross Yield

44%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.7 months ago and is currently at 14% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.74, occupancy cap 66%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €78,830/yr
Average Daily Rate: €486
Payback Period: 18.8 years
5-yr Capital Value: €1.6M
10-yr Capital Value: €1.9M
Brixfox Score: 62.8 / 100
Comparable Properties: 12
Data Confidence: 76%
Search Radius: 2 km

True Investment Cost

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

€1.4M

+14.3% over asking

Asking price€1.2M
IMT — Property transfer tax (investment schedule)€90,000
IS — Stamp duty (0.8%)€9,600
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€18,000
Total acquisition costs€118,850
Renovation (est. €55/m² × 235 m²)
Light touch-ups — paint, fixtures, deep clean.		€12,925
(€7,050–€18,800)
Furnishing & STR launch (4bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€40,050
All-in investment (incl. renovation & furnishing)€1.4M

Gross yield (asking price)

6.6%

True gross yield (all-in)

5.7%

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: 4
Bathrooms: 2
Building: 235 m²
Land: 1275 m²
Style: portuguese-traditional
Condition: good
Year Built: 2003
Energy Certificate: C
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

blue and white exterior facadelarge private swimming poolmultiple outdoor terraceslush garden landscapingocean view from upper levels

Score Breakdown

ROI
15.96
Visual Appeal
10
Ownership Security
13
Location
8.4
Land & Space
6
Rental Demand
4.44
Payback Speed
2
STR Suitability
3

Description

This impressive 4-bedroom villa offers a beautiful sea view from the first floor and is located in a well-established and quiet residential area, only a 15-minute walk from the beach and all essential amenities. The plot has 1,275 m² with a landscaped garden, private swimming pool and several outdoor terraces. The ho

Location

📍 37.0870°N, 8.7290°W

· Lagos, Algarve, Portugal

View on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Em537, Montinhos da Luz, Luz

Inventory
4 Beds
Bathrooms
2 Baths
Built Area
235 m²
Land Plot
1275 m²
Tenure
Freehold
Yield Curve Status

Grade B investment — short-term rental yields 4.4% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score63
GradeB
Brixfox Intelligence
63BStrong
Score Breakdown
ROI & Yield69%
Capital Growth66%
Risk Profile65%
Market Demand63%

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
+9.9%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$332K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
4.4%
$4,807/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
22.6 yr
Rental only

Property details

Year built: 2003
Energy: C
Condition: good

Description

This impressive 4-bedroom villa offers a beautiful sea view from the first floor and is located in a well-established and quiet residential area, only a 15-minute walk from the beach and all essential amenities. The plot has 1,275 m² with a landscaped garden, private swimming pool and several outdoor terraces. The ho

Income Breakdown

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Nightly Rate (ADR)
$711/night
50% ($327)Brixfox estimate($711/night)200% ($1308)
Occupancy
44%
10%Brixfox estimate(44%)100%

Short-Term Rental

Yearly income
$57,685
Airbnb data$711/night · 44% occupancy
Rental income
$711/night · 44% occ.
$115,322
Running costs (20%)
Utilities, cleaning, maintenance
-$23,064
Income tax (10%)
Indonesian rental income tax
-$32,290
Property tax
Annual property tax
-$2,283
Net income
4.4% ROI
$57,685

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$1,304,348
IMT (transfer tax, investment schedule)$97,826
Imposto de Selo (stamp duty)$10,435
Notary & registration$1,359
Legal / due diligence$19,565
Total acquisition costs$129,185
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$14,049
($7,663–$20,435)
Furnishing & STR launch
4bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$41,359
All-in investment$1,488,940

Gross yield (asking)

8.8%

True gross yield (all-in)

7.7%

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.

$7.4M$5.5M$3.7M$1.8M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $1.2M
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 18: rental income alone has repaid the full purchase price.
2x return
Year 11: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.5M
+22%
Rental Income
+$282K
Total Position
$1.7M
+45%
7.7%/yr
Year 10
Capital Value
$1.8M
+48%
Rental Income
+$608K
Total Position
$2.4M
+99%
7.1%/yr
Year 20
Capital Value
$2.6M
+119%
Rental Income
+$1.4M
Total Position
$4.1M
+238%
6.3%/yr
Year 30
Capital Value
$3.9M
+224%
Rental Income
+$2.5M
Total Position
$6.4M
+435%
5.7%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Average
4.4% annual return
Occupancy
Weak
44% average occupancy
Nightly Rate
Strong
$654 per night
Visual Appeal
Good
7/10 instagrammability
Size & Space
Strong
1275 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $654 — positioned in the top tier
Generous 1275 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
Yield of 4.4% is near the market average — model your cashflow carefully

Consider carefully. Returns are below market average for this price point.

Risks & What-If

What if occupancy changes?

Owner Managed scenario

30% occ.
4.0%
$4,352/mo
40% occ.
5.4%
$5,866/mo
44% occ.
6.0%
$6,537/mo
current
54% occ.
7.4%
$8,051/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.