House in Montinhos da Luz, Luz
House in Montinhos da Luz, Luz — image 2House in Montinhos da Luz, Luz — image 3House in Montinhos da Luz, Luz — image 4House in Montinhos da Luz, Luz — image 5
Grade Avillamid-range

House in Montinhos da Luz, Luz

Lagos · Western Algarve ·

€755,000

Asking Price (EUR)

7.5%

True Net Yield (Owner, all-in)

5.2%

True Net Yield (Managed, all-in)

11.5%

True Gross Yield

47%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2 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: €100,621/yr
Average Daily Rate: €586
+15.0% vs area baselinePortuguese-traditional style (+5%), Has pool (0%), Has view (+10%)
Payback Period: 9.3 years
5-yr Capital Value: €992,059
10-yr Capital Value: €1.2M
Brixfox Score: 82.1 / 100
Comparable Properties: 12
Data Confidence: 82%
Search Radius: 2 km

True Investment Cost

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

€872,880

+15.6% over asking

Asking price€755,000
IMT — Property transfer tax (investment schedule)€45,300
IS — Stamp duty (0.8%)€6,040
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€11,325
Total acquisition costs€63,915
Renovation (est. €55/m² × 253 m²)
Light touch-ups — paint, fixtures, deep clean.		€13,915
(€7,590–€20,240)
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)€872,880

Gross yield (asking price)

13.3%

True gross yield (all-in)

11.5%

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: 3
Building: 253 m²
Land: 1000 m²
Style: portuguese-traditional
Condition: good
Year Built: 2009
Energy Certificate: A
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

large private pool with dolphin mosaiccovered outdoor living areasea view

Score Breakdown

ROI
24.22
Visual Appeal
12.8
Ownership Security
13
Location
8.4
Land & Space
12
Rental Demand
4.7
Payback Speed
4
STR Suitability
3

Description

We present this excellent 3+1-bedroom villa, located in a calm residential development in Montinhos da Luz a unique opportunity for those seeking comfort, privacy, and quality of life in the Algarve. The property welcomes us with a spacious and bright entrance, leading to a modern open-plan area that integrates the ki

Location

📍 37.0880°N, 8.7458°W

· Lagos, Algarve, Portugal

View on Marcela Propriedades →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

House in Montinhos da Luz, Luz

Inventory
4 Beds
Bathrooms
3 Baths
Built Area
253 m²
Land Plot
1000 m²
Tenure
Freehold
Yield Curve Status

Grade A investment — short-term rental yields 9.1% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score82
GradeA
Brixfox Intelligence
82AExcellent
Score Breakdown
ROI & Yield90%
Capital Growth86%
Risk Profile83%
Market Demand82%

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.

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Average annual ROI over 5 years, combining both rental income and property value growth.
Total
+14.6%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$209K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
9.1%
$6,198/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
11.0 yr
Rental only

Property details

Year built: 2009
Energy: A
Condition: good

Description

We present this excellent 3+1-bedroom villa, located in a calm residential development in Montinhos da Luz a unique opportunity for those seeking comfort, privacy, and quality of life in the Algarve. The property welcomes us with a spacious and bright entrance, leading to a modern open-plan area that integrates the ki

Income Breakdown

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Nightly Rate (ADR)
$850/night
50% ($391)Brixfox estimate($850/night)200% ($1563)
Occupancy
47%
10%Brixfox estimate(47%)100%

Short-Term Rental

Yearly income
$74,381
Airbnb data$850/night · 47% occupancy
Rental income
$850/night · 47% occ.
$145,802
Running costs (20%)
Utilities, cleaning, maintenance
-$29,160
Income tax (10%)
Indonesian rental income tax
-$40,825
Property tax
Annual property tax
-$1,436
Net income
9.1% ROI
$74,381

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$820,652
IMT (transfer tax, investment schedule)$49,239
Imposto de Selo (stamp duty)$6,565
Notary & registration$1,359
Legal / due diligence$12,310
Total acquisition costs$69,473
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$15,125
($8,250–$22,000)
Furnishing & STR launch
4bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$41,359
All-in investment$946,609

Gross yield (asking)

17.8%

True gross yield (all-in)

15.4%

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.

$6.6M$4.9M$3.3M$1.6M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $755K
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
$919K
+22%
Rental Income
+$363K
Total Position
$1.3M
+70%
11.2%/yr
Year 10
Capital Value
$1.1M
+48%
Rental Income
+$784K
Total Position
$1.9M
+152%
9.7%/yr
Year 20
Capital Value
$1.7M
+119%
Rental Income
+$1.8M
Total Position
$3.5M
+363%
8.0%/yr
Year 30
Capital Value
$2.4M
+224%
Rental Income
+$3.3M
Total Position
$5.7M
+656%
7.0%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Strong
9.1% annual return
Occupancy
Average
47% average occupancy
Nightly Rate
Strong
$782 per night
Visual Appeal
Good
7/10 instagrammability
Size & Space
Strong
1000 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

High rental yield at 9.1% — outperforms most villas in this market
Premium nightly rate of $782 — positioned in the top tier
Generous 1000 m² land — room for expansion or amenities

Watch Out

Secondary location — rental demand may be lower than premium areas
Occupancy at 47% — factor in seasonal gaps

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

30% occ.
7.8%
$5,307/mo
40% occ.
10.4%
$7,116/mo
47% occ.
12.3%
$8,386/mo
current
57% occ.
14.9%
$10,194/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.