Detached house in Rua Longa, Montinhos da Luz, Luz
Detached house in Rua Longa, Montinhos da Luz, Luz — image 2Detached house in Rua Longa, Montinhos da Luz, Luz — image 3Detached house in Rua Longa, Montinhos da Luz, Luz — image 4Detached house in Rua Longa, Montinhos da Luz, Luz — image 5
Grade Avillamid-range

Detached house in Rua Longa, Montinhos da Luz, Luz

Lagos · Western Algarve ·

€750,000

Asking Price (EUR)

7.6%

True Net Yield (Owner, all-in)

5.2%

True Net Yield (Managed, all-in)

11.6%

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: €100,451/yr
Average Daily Rate: €585
+15.0% vs area baselinePortuguese-traditional style (+5%), Has pool (0%), Has view (+10%)
Payback Period: 9.3 years
5-yr Capital Value: €985,489
10-yr Capital Value: €1.2M
Brixfox Score: 79.8 / 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.

€862,350

+15.0% over asking

Asking price€750,000
IMT — Property transfer tax (investment schedule)€45,000
IS — Stamp duty (0.8%)€6,000
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€11,250
Total acquisition costs€63,500
Renovation (est. €55/m² × 160 m²)
Light touch-ups — paint, fixtures, deep clean.		€8,800
(€4,800–€12,800)
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)€862,350

Gross yield (asking price)

13.4%

True gross yield (all-in)

11.6%

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: 160 m²
Land: 462 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

traditional portuguese architecturesea viewslush garden

Score Breakdown

ROI
24.25
Visual Appeal
11.2
Ownership Security
13
Location
8.4
Land & Space
11.24
Rental Demand
4.71
Payback Speed
4
STR Suitability
3

Description

Spacious house in the picturesque village of Praia da Luz, on the outskirts of Lagos Located in one of the most beautiful areas of the Algarve, just minutes from stunning beaches, this charming home is surrounded by lush gardens and flowering plants. The plot features fruit trees, a playground, leisure areas, a summe

Location

📍 37.0890°N, 8.7462°W

· Lagos, Algarve, Portugal

View on Villas Key →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house in Rua Longa, Montinhos da Luz, Luz

Inventory
4 Beds
Bathrooms
3 Baths
Built Area
160 m²
Land Plot
462 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 Score80
GradeA
Brixfox Intelligence
80AExcellent
Score Breakdown
ROI & Yield88%
Capital Growth84%
Risk Profile81%
Market Demand80%

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
+14.6%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$207K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
9.1%
$6,189/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: 2003
Energy: C
Condition: good

Description

Spacious house in the picturesque village of Praia da Luz, on the outskirts of Lagos Located in one of the most beautiful areas of the Algarve, just minutes from stunning beaches, this charming home is surrounded by lush gardens and flowering plants. The plot features fruit trees, a playground, leisure areas, a summe

Income Breakdown

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Nightly Rate (ADR)
$848/night
50% ($390)Brixfox estimate($848/night)200% ($1560)
Occupancy
47%
10%Brixfox estimate(47%)100%

Short-Term Rental

Yearly income
$74,263
Airbnb data$848/night · 47% occupancy
Rental income
$848/night · 47% occ.
$145,557
Running costs (20%)
Utilities, cleaning, maintenance
-$29,111
Income tax (10%)
Indonesian rental income tax
-$40,756
Property tax
Annual property tax
-$1,427
Net income
9.1% ROI
$74,263

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$815,217
IMT (transfer tax, investment schedule)$48,913
Imposto de Selo (stamp duty)$6,522
Notary & registration$1,359
Legal / due diligence$12,228
Total acquisition costs$69,022
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$9,565
($5,217–$13,913)
Furnishing & STR launch
4bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$41,359
All-in investment$935,163

Gross yield (asking)

17.9%

True gross yield (all-in)

15.6%

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.

$6.5M$4.9M$3.3M$1.6M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $750K
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
$912K
+22%
Rental Income
+$363K
Total Position
$1.3M
+70%
11.2%/yr
Year 10
Capital Value
$1.1M
+48%
Rental Income
+$783K
Total Position
$1.9M
+152%
9.7%/yr
Year 20
Capital Value
$1.6M
+119%
Rental Income
+$1.8M
Total Position
$3.5M
+364%
8.0%/yr
Year 30
Capital Value
$2.4M
+224%
Rental Income
+$3.3M
Total Position
$5.7M
+658%
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
$780 per night
Visual Appeal
Good
6/10 instagrammability
Size & Space
Good
462 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 $780 — positioned in the top tier
Freehold ownership — maximum long-term security

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%
$5,295/mo
40% occ.
10.5%
$7,100/mo
47% occ.
12.3%
$8,372/mo
current
57% occ.
15.0%
$10,177/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.