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

Detached house in Rua Pedro Pacheco dos Reis, 4, Montinhos da Luz, Luz

Lagos · Western Algarve ·

€900,000

Asking Price (EUR)

7.8%

True Net Yield (Owner, all-in)

5.4%

True Net Yield (Managed, all-in)

11.9%

True Gross Yield

64%

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: €123,382/yr
Average Daily Rate: €524
Payback Period: 9.1 years
5-yr Capital Value: €1.2M
10-yr Capital Value: €1.4M
Brixfox Score: 81.2 / 100
Comparable Properties: 5
Data Confidence: 71%
Search Radius: 2 km

True Investment Cost

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

€1.0M

+14.8% over asking

Asking price€900,000
IMT — Property transfer tax (investment schedule)€54,000
IS — Stamp duty (0.8%)€7,200
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€13,500
Total acquisition costs€75,950
Renovation (est. €55/m² × 218 m²)
Light touch-ups — paint, fixtures, deep clean.		€11,990
(€6,540–€17,440)
Furnishing & STR launch (5bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€45,400
All-in investment (incl. renovation & furnishing)€1.0M

Gross yield (asking price)

13.7%

True gross yield (all-in)

11.9%

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: 5
Bathrooms: 3
Building: 218 m²
Land: 1983 m²
Style: portuguese-traditional
Condition: good
Energy Certificate: C
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

traditional portuguese roof tilespalm treeselevated pool with panoramic views

Score Breakdown

ROI
24.4
Visual Appeal
10
Ownership Security
13
Location
8.4
Land & Space
12
Rental Demand
6.45
Payback Speed
4
STR Suitability
3

Description

Casa Mandala – A Peaceful Hillside Retreat Near Luz & Burgau Nestled in a beautifully quiet location, yet just minutes from the charm of Luz and Burgau, Casa Mandala offers the perfect balance of tranquility and convenience. This stylish four-bedroom home is designed for relaxed family living, entertaining, and effort

Location

📍 37.0947°N, 8.7531°W

· Lagos, Algarve, Portugal

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

Detached house in Rua Pedro Pacheco dos Reis, 4, Montinhos da Luz, Luz

Inventory
5 Beds
Bathrooms
3 Baths
Built Area
218 m²
Land Plot
1983 m²
Tenure
Freehold
Yield Curve Status

Grade A investment — short-term rental yields 9.3% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score81
GradeA
Brixfox Intelligence
81AExcellent
Score Breakdown
ROI & Yield89%
Capital Growth85%
Risk Profile82%
Market Demand81%

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
+14.8%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$249K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
9.3%
$7,588/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
7 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
10.7 yr
Rental only

Property details

Energy: C
Condition: good

Description

Casa Mandala – A Peaceful Hillside Retreat Near Luz & Burgau Nestled in a beautifully quiet location, yet just minutes from the charm of Luz and Burgau, Casa Mandala offers the perfect balance of tranquility and convenience. This stylish four-bedroom home is designed for relaxed family living, entertaining, and effort

Income Breakdown

Adjust Forecast

Customize your projections
Nightly Rate (ADR)
$758/night
50% ($349)Brixfox estimate($758/night)200% ($1395)
Occupancy
64%
10%Brixfox estimate(64%)100%

Short-Term Rental

Yearly income
$91,061
Airbnb data$758/night · 64% occupancy
Rental income
$758/night · 64% occ.
$178,409
Running costs (20%)
Utilities, cleaning, maintenance
-$35,682
Income tax (10%)
Indonesian rental income tax
-$49,954
Property tax
Annual property tax
-$1,712
Net income
9.3% ROI
$91,061

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$978,261
IMT (transfer tax, investment schedule)$58,696
Imposto de Selo (stamp duty)$7,826
Notary & registration$1,359
Legal / due diligence$14,674
Total acquisition costs$82,554
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$13,033
($7,109–$18,957)
Furnishing & STR launch
5bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$47,174
All-in investment$1,121,022

Gross yield (asking)

18.2%

True gross yield (all-in)

15.9%

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.

$7.9M$6.0M$4.0M$2.0M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $900K
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 10: rental income alone has repaid the full purchase price.
2x return
Year 7: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.1M
+22%
Rental Income
+$445K
Total Position
$1.5M
+71%
11.3%/yr
Year 10
Capital Value
$1.3M
+48%
Rental Income
+$960K
Total Position
$2.3M
+155%
9.8%/yr
Year 20
Capital Value
$2.0M
+119%
Rental Income
+$2.3M
Total Position
$4.2M
+369%
8.0%/yr
Year 30
Capital Value
$2.9M
+224%
Rental Income
+$4.0M
Total Position
$6.9M
+667%
7.0%/yr

Location

Lagos

Western Algarve, Approximate area

Loading Map...

Airbnb Comp Analysis

No nearby Airbnb listings found

Ask Brixfox AI

Conversational analysis — questions about this listing, answered from real data.

Try one of these

Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Strong
9.3% annual return
Occupancy
Good
64% average occupancy
Nightly Rate
Strong
$698 per night
Visual Appeal
Good
7/10 instagrammability
Size & Space
Strong
1983 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

High rental yield at 9.3% — outperforms most villas in this market
Premium nightly rate of $698 — positioned in the top tier
Generous 1983 m² land — room for expansion or amenities

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

44% occ.
8.6%
$7,035/mo
54% occ.
10.6%
$8,650/mo
64% occ.
12.6%
$10,264/mo
current
74% occ.
14.6%
$11,879/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.