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

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

Lagos · Western Algarve ·

€990,000

Asking Price (EUR)

3.1%

True Net Yield (Owner, all-in)

2.2%

True Net Yield (Managed, all-in)

4.8%

True Gross Yield

43%

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: €53,537/yr
Average Daily Rate: €339
+10.0% vs area baselineModern/contemporary style (+12%), No pool (-12%), Has view (+10%)
Payback Period: 23.1 years
5-yr Capital Value: €1.3M
10-yr Capital Value: €1.6M
Brixfox Score: 68.4 / 100
Comparable Properties: 10
Data Confidence: 73%
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)

5.4%

True gross yield (all-in)

4.8%

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: contemporary
Condition: good
Energy Certificate: D
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

stone accent walllarge windows/sliding doors for natural lightrural setting with wind farm views

Score Breakdown

ROI
14.44
Visual Appeal
12.2
Ownership Security
13
Location
8.4
Land & Space
12
Rental Demand
4.33
Payback Speed
1
STR Suitability
3

Description

Spacious fully detached 3 bedroom villa located near Praia da Luz, surrounded by open countryside with peaceful views. This home is set in a tranquil location, offering bright, natural light-filled interiors at once spacious and comfortable on an entire single storey lay-out. The property features a large living room

Location

📍 37.0923°N, 8.7514°W

· Lagos, Algarve, Portugal

View on Algarve Unique Properties →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Rua Pedro Pacheco dos Reis, 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 3.6% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score68
GradeB+
Brixfox Intelligence
68B+Strong
Score Breakdown
ROI & Yield75%
Capital Growth71%
Risk Profile70%
Market Demand68%

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
+9.1%
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
3.6%
$3,196/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
10 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
28.1 yr
Rental only

Property details

Energy: D
Condition: good

Description

Spacious fully detached 3 bedroom villa located near Praia da Luz, surrounded by open countryside with peaceful views. This home is set in a tranquil location, offering bright, natural light-filled interiors at once spacious and comfortable on an entire single storey lay-out. The property features a large living room

Income Breakdown

Adjust Forecast

Customize your projections
Nightly Rate (ADR)
$490/night
50% ($225)Brixfox estimate($490/night)200% ($902)
Occupancy
43%
10%Brixfox estimate(43%)100%

Short-Term Rental

Yearly income
$38,357
Airbnb data$490/night · 43% occupancy
Rental income
$490/night · 43% occ.
$77,386
Running costs (20%)
Utilities, cleaning, maintenance
-$15,477
Income tax (10%)
Indonesian rental income tax
-$21,668
Property tax
Annual property tax
-$1,883
Net income
3.6% ROI
$38,357

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)

7.2%

True gross yield (all-in)

6.4%

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.

$5.6M$4.2M$2.8M$1.4M$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 21: rental income alone has repaid the full purchase price.
2x return
Year 12: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.2M
+22%
Rental Income
+$187K
Total Position
$1.4M
+41%
7.1%/yr
Year 10
Capital Value
$1.5M
+48%
Rental Income
+$405K
Total Position
$1.9M
+89%
6.6%/yr
Year 20
Capital Value
$2.2M
+119%
Rental Income
+$948K
Total Position
$3.1M
+215%
5.9%/yr
Year 30
Capital Value
$3.2M
+224%
Rental Income
+$1.7M
Total Position
$4.9M
+394%
5.5%/yr

Location

Lagos

Western Algarve, Approximate area

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Airbnb Comp Analysis

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Average
3.6% annual return
Occupancy
Weak
43% average occupancy
Nightly Rate
Strong
$451 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 $451 — 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
Yield of 3.6% 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.
3.3%
$2,974/mo
40% occ.
4.5%
$4,017/mo
43% occ.
4.9%
$4,357/mo
current
53% occ.
6.0%
$5,401/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.