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

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

Lagos · Western Algarve ·

€990,000

Asking Price (EUR)

2.3%

True Net Yield (Owner, all-in)

1.6%

True Net Yield (Managed, all-in)

3.5%

True Gross Yield

35%

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: €39,227/yr
Average Daily Rate: €305
+10.0% vs area baselineModern/contemporary style (+12%), No pool (-12%), Has view (+10%)
Payback Period: 31.5 years
5-yr Capital Value: €1.3M
10-yr Capital Value: €1.6M
Brixfox Score: 63.6 / 100
Comparable Properties: 10
Data Confidence: 75%
Search Radius: 2 km

True Investment Cost

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

€1.1M

+13.5% over asking

Asking price€990,000
IMT — Property transfer tax (investment schedule)€59,400
IS — Stamp duty (0.8%)€7,920
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€14,850
Total acquisition costs€83,420
Renovation (est. €55/m² × 336 m²)
Light touch-ups — paint, fixtures, deep clean.		€18,480
(€10,080–€26,880)
Furnishing & STR launch (3bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€32,200
All-in investment (incl. renovation & furnishing)€1.1M

Gross yield (asking price)

4.0%

True gross yield (all-in)

3.5%

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: 3
Bathrooms: 4
Building: 336 m²
Land: 18000 m²
Style: contemporary
Condition: good
Year Built: 2014
Energy Certificate: D
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

expansive windows with nature viewslarge outdoor terrace with tiered stepsseparate stone outbuilding

Score Breakdown

ROI
11.51
Visual Appeal
12.2
Ownership Security
13
Location
8.4
Land & Space
12
Rental Demand
3.52
Payback Speed
0
STR Suitability
3

Description

Nestled in the tranquil countryside, this beautiful three-bedroom home offers comfort, privacy, and breathtaking surroundings. Each of the three spacious bedrooms features its own en suite bathroom, providing luxury and convenience for family and guests alike. The property enjoys unspoilt panoramic views of the stunni

Location

📍 37.0958°N, 8.7553°W

· Lagos, Algarve, Portugal

View on Sunpoint Properties →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

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

Inventory
3 Beds
Bathrooms
4 Baths
Built Area
336 m²
Land Plot
18000 m²
Tenure
Freehold
Yield Curve Status

Grade B investment — short-term rental yields 2.6% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score64
GradeB
Brixfox Intelligence
64BStrong
Score Breakdown
ROI & Yield70%
Capital Growth67%
Risk Profile66%
Market Demand64%

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
+8.1%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$274K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
2.6%
$2,306/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
11 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
38.9 yr
Rental only

Property details

Year built: 2014
Energy: D
Condition: good

Description

Nestled in the tranquil countryside, this beautiful three-bedroom home offers comfort, privacy, and breathtaking surroundings. Each of the three spacious bedrooms features its own en suite bathroom, providing luxury and convenience for family and guests alike. The property enjoys unspoilt panoramic views of the stunni

Income Breakdown

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Nightly Rate (ADR)
$442/night
50% ($203)Brixfox estimate($442/night)200% ($813)
Occupancy
35%
10%Brixfox estimate(35%)100%

Short-Term Rental

Yearly income
$27,674
Airbnb data$442/night · 35% occupancy
Rental income
$442/night · 35% occ.
$56,840
Running costs (20%)
Utilities, cleaning, maintenance
-$11,368
Income tax (10%)
Indonesian rental income tax
-$15,915
Property tax
Annual property tax
-$1,883
Net income
2.6% ROI
$27,674

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$1,076,087
IMT (transfer tax, investment schedule)$64,565
Imposto de Selo (stamp duty)$8,609
Notary & registration$1,359
Legal / due diligence$16,141
Total acquisition costs$90,674
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$20,087
($10,957–$29,217)
Furnishing & STR launch
3bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$32,826
All-in investment$1,219,674

Gross yield (asking)

5.3%

True gross yield (all-in)

4.7%

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.

$5.1M$3.8M$2.5M$1.3M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $990K
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 27: rental income alone has repaid the full purchase price.
2x return
Year 13: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.2M
+22%
Rental Income
+$135K
Total Position
$1.3M
+35%
6.2%/yr
Year 10
Capital Value
$1.5M
+48%
Rental Income
+$292K
Total Position
$1.8M
+78%
5.9%/yr
Year 20
Capital Value
$2.2M
+119%
Rental Income
+$684K
Total Position
$2.9M
+188%
5.4%/yr
Year 30
Capital Value
$3.2M
+224%
Rental Income
+$1.2M
Total Position
$4.4M
+347%
5.1%/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
Weak
2.6% annual return
Occupancy
Weak
35% average occupancy
Nightly Rate
Strong
$407 per night
Visual Appeal
Good
6/10 instagrammability
Size & Space
Strong
18000 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $407 — positioned in the top tier
Generous 18000 m² land — room for expansion or amenities
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 2.6% is below the market average — model your cashflow carefully

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

Risks & What-If

What if occupancy changes?

Owner Managed scenario

30% occ.
3.0%
$2,667/mo
40% occ.
4.0%
$3,608/mo
35% occ.
3.5%
$3,159/mo
current
45% occ.
4.6%
$4,100/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.