Detached house in Espiche, Luz
Detached house in Espiche, Luz — image 2Detached house in Espiche, Luz — image 3Detached house in Espiche, Luz — image 4Detached house in Espiche, Luz — image 5
Grade Avillabudget

Detached house in Espiche, Luz

Lagos · Western Algarve ·

€160,000

Asking Price (EUR)

9.8%

True Net Yield (Owner, all-in)

6.8%

True Net Yield (Managed, all-in)

15.1%

True Gross Yield

62%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.5 months ago and is currently at 12% 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: €37,271/yr
Average Daily Rate: €165
Payback Period: 5.3 years
5-yr Capital Value: €210,238
10-yr Capital Value: €255,786
Brixfox Score: 75.8 / 100
Comparable Properties: 61
Data Confidence: 87%
Search Radius: 2 km

True Investment Cost

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

€246,878

+54.3% over asking

Asking price€160,000
IMT — Property transfer tax (investment schedule)€2,798
IS — Stamp duty (0.8%)€1,280
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€2,400
Total acquisition costs€7,728
Renovation (est. €900/m² × 67 m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		€60,300
(€46,900–€73,700)
Furnishing & STR launch (2bd × €2500 base, budget tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€18,850
All-in investment (incl. renovation & furnishing)€246,878

Gross yield (asking price)

23.3%

True gross yield (all-in)

15.1%

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: 2
Bathrooms: 2
Building: 67 m²
Land: 145 m²
Style: portuguese-traditional
Condition: needs-renovation
Energy Certificate: Exempt

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

potential for multi-level designtraditional Algarve architecture elements (pre-renovation)

Score Breakdown

ROI
25
Visual Appeal
10
Ownership Security
13
Location
8.4
Land & Space
5.21
Rental Demand
6.19
Payback Speed
5
STR Suitability
3

Description

This Portuguese village house in the centre of the pretty village of Espiche has been stripped back to bare walls ready to either renovate into a beautiful little house with garden or to construct a stunning 2-bedroom, 2-bathroom house of 136m2, spread over 3 levels with a rooftop plunge pool, off-road parking and ampl

Location

📍 37.1035°N, 8.7387°W

· Lagos, Algarve, Portugal

View on SeaToSky Homes, Algarve →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Espiche, Luz

Inventory
2 Beds
Bathrooms
2 Baths
Built Area
67 m²
Land Plot
145 m²
Tenure
Freehold
Yield Curve Status

Grade A investment — short-term rental yields 16.3% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score76
GradeA
Brixfox Intelligence
76AExcellent
Score Breakdown
ROI & Yield84%
Capital Growth80%
Risk Profile77%
Market Demand76%

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
+21.8%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$44K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
16.3%
$2,356/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
5 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
6.2 yr
Rental only

Property details

Energy: Exempt
Condition: needs-renovation

Description

This Portuguese village house in the centre of the pretty village of Espiche has been stripped back to bare walls ready to either renovate into a beautiful little house with garden or to construct a stunning 2-bedroom, 2-bathroom house of 136m2, spread over 3 levels with a rooftop plunge pool, off-road parking and ampl

Income Breakdown

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Nightly Rate (ADR)
$243/night
50% ($112)Brixfox estimate($243/night)200% ($447)
Occupancy
62%
10%Brixfox estimate(62%)100%

Short-Term Rental

Yearly income
$28,272
Airbnb data$243/night · 62% occupancy
Rental income
$243/night · 62% occ.
$54,954
Running costs (20%)
Utilities, cleaning, maintenance
-$10,991
Income tax (10%)
Indonesian rental income tax
-$15,387
Property tax
Annual property tax
-$304
Net income
16.3% ROI
$28,272

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$173,913
IMT (transfer tax, investment schedule)$3,041
Imposto de Selo (stamp duty)$1,391
Notary & registration$1,359
Legal / due diligence$2,609
Total acquisition costs$8,400
Renovation (~$978/m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		$65,543
($50,978–$80,109)
Furnishing & STR launch
2bd × $2,717 base + appliances, electronics, outdoor, licence, photography, linens.		$18,315
All-in investment$266,172

Gross yield (asking)

31.6%

True gross yield (all-in)

20.6%

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.

$2.0M$1.5M$1.0M$505K$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $160K
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 6: rental income alone has repaid the full purchase price.
2x return
Year 5: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$195K
+22%
Rental Income
+$138K
Total Position
$333K
+108%
15.8%/yr
Year 10
Capital Value
$237K
+48%
Rental Income
+$298K
Total Position
$535K
+234%
12.8%/yr
Year 20
Capital Value
$351K
+119%
Rental Income
+$699K
Total Position
$1.0M
+556%
9.9%/yr
Year 30
Capital Value
$519K
+224%
Rental Income
+$1.2M
Total Position
$1.8M
+998%
8.3%/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
Strong
16.3% annual return
Occupancy
Good
62% average occupancy
Nightly Rate
Strong
$224 per night
Visual Appeal
Average
4/10 instagrammability
Size & Space
Weak
145 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

High rental yield at 16.3% — outperforms most villas in this market
Premium nightly rate of $224 — positioned in the top tier
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Visual appeal is below average — photos may not compete well on Airbnb listings

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

Risks & What-If

What if occupancy changes?

Owner Managed scenario

42% occ.
14.8%
$2,145/mo
52% occ.
18.4%
$2,663/mo
62% occ.
21.9%
$3,180/mo
current
72% occ.
25.5%
$3,698/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.