Detached house in Rua Doutor Carlos Paiao, 42, Centro, Montenegro
Grade Bvilla

Detached house in Rua Doutor Carlos Paiao, 42, Centro, Montenegro

Faro · Eastern Algarve ·

€795,000

Asking Price (EUR)

2.5%

True Net Yield (Owner, all-in)

1.7%

True Net Yield (Managed, all-in)

3.8%

True Gross Yield

39%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2.1 months ago and is currently at 18% 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: €37,189/yr
Average Daily Rate: €258
Payback Period: 26.7 years
5-yr Capital Value: €1.0M
10-yr Capital Value: €1.3M
Brixfox Score: 57.9 / 100
Comparable Properties: 15
Data Confidence: 89%
Search Radius: 2 km

True Investment Cost

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

€967,635

+21.7% over asking

Asking price€795,000
IMT — Property transfer tax (investment schedule)€47,700
IS — Stamp duty (0.8%)€6,360
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€11,925
Total acquisition costs€67,235
Renovation (est. €200/m² × 366 m², from finish level)
Condition & finish level not reported — shown as a moderate contingency. Verify on site visit.		€73,200
(€36,600–€109,800)
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)€967,635

Gross yield (asking price)

4.7%

True gross yield (all-in)

3.8%

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
Building: 366 m²

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Score Breakdown

ROI
13.53
Visual Appeal
10
Ownership Security
13
Location
8.4
Land & Space
6
Rental Demand
3.95
Payback Speed
0
STR Suitability
3

Description

3+1 bedroom villa located at Rua Dr. Carlos Paião Nº42 in the Monte da Ria residential area in Montenegro, municipality of Faro. Areas and Layout: This villa is set on a 757m² plot, with 366m² of built area, divided over 2 floors and an outdoor area with the possibility of building a swimming pool. Areas and Layout:

Location

📍 37.0194°N, 7.9322°W

· Faro, Algarve, Portugal

View on Idealista.pt
Idealista.pt
Faro / Eastern Algarve

Detached house in Rua Doutor Carlos Paiao, 42, Centro, Montenegro

Inventory
3 Beds
Bathrooms
0 Baths
Built Area
366 m²
Land Plot
0 m²
Tenure
Freehold
Yield Curve Status

Grade B investment — short-term rental yields 3.1% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score58
GradeB
Brixfox Intelligence
58BStrong
Score Breakdown
ROI & Yield64%
Capital Growth61%
Risk Profile60%
Market Demand58%

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
+6.8%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+3.8%
+$149K in 5yr (+19%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
3.1%
$2,201/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
13 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
32.7 yr
Rental only

Property details

Description

3+1 bedroom villa located at Rua Dr. Carlos Paião Nº42 in the Monte da Ria residential area in Montenegro, municipality of Faro. Areas and Layout: This villa is set on a 757m² plot, with 366m² of built area, divided over 2 floors and an outdoor area with the possibility of building a swimming pool. Areas and Layout:

Income Breakdown

Adjust Forecast

Customize your projections
Nightly Rate (ADR)
$373/night
50% ($171)Brixfox estimate($373/night)200% ($686)
Occupancy
39%
10%Brixfox estimate(39%)100%

Short-Term Rental

Yearly income
$26,418
Airbnb data$373/night · 39% occupancy
Rental income
$373/night · 39% occ.
$53,712
Running costs (20%)
Utilities, cleaning, maintenance
-$10,742
Income tax (10%)
Indonesian rental income tax
-$15,039
Property tax
Annual property tax
-$1,512
Net income
3.1% ROI
$26,418

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$864,130
IMT (transfer tax, investment schedule)$51,848
Imposto de Selo (stamp duty)$6,913
Notary & registration$1,359
Legal / due diligence$12,962
Total acquisition costs$73,082
Renovation (~$217/m², from finish level)
Condition & finish level not reported — shown as a moderate contingency. Verify on site visit.		$79,565
($39,783–$119,348)
Furnishing & STR launch
3bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$32,826
All-in investment$1,049,603

Gross yield (asking)

6.2%

True gross yield (all-in)

5.1%

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 Faro.

$4.3M$3.2M$2.1M$1.1M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $795K
Capital appreciation
Property value growing at +4%/yr based on Faro 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 24: rental income alone has repaid the full purchase price.
2x return
Year 12: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$967K
+22%
Rental Income
+$129K
Total Position
$1.1M
+38%
6.6%/yr
Year 10
Capital Value
$1.2M
+48%
Rental Income
+$279K
Total Position
$1.5M
+83%
6.2%/yr
Year 20
Capital Value
$1.7M
+119%
Rental Income
+$653K
Total Position
$2.4M
+201%
5.7%/yr
Year 30
Capital Value
$2.6M
+224%
Rental Income
+$1.2M
Total Position
$3.7M
+370%
5.3%/yr

Location

Faro

Eastern Algarve, Approximate area

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Airbnb Comp Analysis

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Average
3.1% annual return
Occupancy
Weak
39% average occupancy
Nightly Rate
Strong
$343 per night
Visual Appeal
Average
Not yet analyzed
Size & Space
Weak
0 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $343 — positioned in the top tier
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 3.1% is near 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.
3.1%
$2,254/mo
40% occ.
4.2%
$3,048/mo
current
39% occ.
4.2%
$3,007/mo
current
49% occ.
5.3%
$3,801/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.