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 B+villamid-range

House in Montinhos da Luz, Luz

Lagos · Western Algarve ·

€750,000

Asking Price (EUR)

5.8%

True Net Yield (Owner, all-in)

4.0%

True Net Yield (Managed, all-in)

9.0%

True Gross Yield

46%

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: €77,318/yr
Average Daily Rate: €459
-10.0% vs area baselineImage quality 6/10 (-3%), Portuguese-traditional style (+5%), No pool (-12%)
Payback Period: 12.1 years
5-yr Capital Value: €985,489
10-yr Capital Value: €1.2M
Brixfox Score: 73.2 / 100
Comparable Properties: 12
Data Confidence: 83%
Search Radius: 2 km

True Investment Cost

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

€859,850

+14.6% 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.		€37,550
All-in investment (incl. renovation & furnishing)€859,850

Gross yield (asking price)

10.3%

True gross yield (all-in)

9.0%

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

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

bougainvillea-covered facadeoutdoor kitchen with built-in BBQjacuzzi

Score Breakdown

ROI
20.5
Visual Appeal
9.4
Ownership Security
13
Location
8.4
Land & Space
11.24
Rental Demand
4.62
Payback Speed
3
STR Suitability
3

Description

Discover this fantastic villa, a charming house located in the picturesque Vila da Luz in Lagos. With 4 bedrooms and 3 bathrooms, this villa offers a generous area of 160m² on a plot of 462m². The property is in good condition, perfect for those looking for a cozy and ready-to-move-in home. With class C energy certif

Location

📍 37.0880°N, 8.7455°W

· Lagos, Algarve, Portugal

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

House in Montinhos da Luz, Luz

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

Grade B+ investment — short-term rental yields 7.0% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score73
GradeB+
Brixfox Intelligence
73B+Strong
Score Breakdown
ROI & Yield80%
Capital Growth77%
Risk Profile74%
Market Demand73%

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
+12.5%
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
7.0%
$4,736/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
8 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
14.3 yr
Rental only

Property details

Year built: 2003
Energy: C
Condition: good

Description

Discover this fantastic villa, a charming house located in the picturesque Vila da Luz in Lagos. With 4 bedrooms and 3 bathrooms, this villa offers a generous area of 160m² on a plot of 462m². The property is in good condition, perfect for those looking for a cozy and ready-to-move-in home. With class C energy certif

Income Breakdown

Adjust Forecast

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Nightly Rate (ADR)
$665/night
50% ($306)Brixfox estimate($665/night)200% ($1223)
Occupancy
46%
10%Brixfox estimate(46%)100%

Short-Term Rental

Yearly income
$56,827
Airbnb data$665/night · 46% occupancy
Rental income
$665/night · 46% occ.
$112,027
Running costs (20%)
Utilities, cleaning, maintenance
-$22,405
Income tax (10%)
Indonesian rental income tax
-$31,368
Property tax
Annual property tax
-$1,427
Net income
7.0% ROI
$56,827

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.		$38,641
All-in investment$932,446

Gross yield (asking)

13.7%

True gross yield (all-in)

12.0%

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.

$5.7M$4.2M$2.8M$1.4M$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 13: rental income alone has repaid the full purchase price.
2x return
Year 9: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$912K
+22%
Rental Income
+$278K
Total Position
$1.2M
+59%
9.7%/yr
Year 10
Capital Value
$1.1M
+48%
Rental Income
+$599K
Total Position
$1.7M
+128%
8.6%/yr
Year 20
Capital Value
$1.6M
+119%
Rental Income
+$1.4M
Total Position
$3.0M
+306%
7.3%/yr
Year 30
Capital Value
$2.4M
+224%
Rental Income
+$2.5M
Total Position
$4.9M
+556%
6.5%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Good
7.0% annual return
Occupancy
Average
46% average occupancy
Nightly Rate
Strong
$612 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

Premium nightly rate of $612 — 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 46% — 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.
6.1%
$4,127/mo
40% occ.
8.2%
$5,542/mo
46% occ.
9.4%
$6,417/mo
current
56% occ.
11.5%
$7,832/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.