Detached house, Urbanização Melody, 5, Ferrel, Luz
Detached house, Urbanização Melody, 5, Ferrel, Luz — image 2Detached house, Urbanização Melody, 5, Ferrel, Luz — image 3Detached house, Urbanização Melody, 5, Ferrel, Luz — image 4Detached house, Urbanização Melody, 5, Ferrel, Luz — image 5
Grade B+villamid-range

Detached house, Urbanização Melody, 5, Ferrel, Luz

Lagos · Western Algarve ·

€1.1M

Asking Price (EUR)

3.6%

True Net Yield (Owner, all-in)

2.5%

True Net Yield (Managed, all-in)

5.5%

True Gross Yield

38%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.6 months ago and is currently at 13% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.74, occupancy cap 66%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €69,340/yr
Average Daily Rate: €506
Payback Period: 19.5 years
5-yr Capital Value: €1.4M
10-yr Capital Value: €1.8M
Brixfox Score: 68.6 / 100
Comparable Properties: 7
Data Confidence: 70%
Search Radius: 2 km

True Investment Cost

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

€1.2M

+13.6% over asking

Asking price€1.1M
IMT — Property transfer tax (investment schedule)€66,000
IS — Stamp duty (0.8%)€8,800
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€16,500
Total acquisition costs€92,550
Renovation (est. €55/m² × 359 m²)
Light touch-ups — paint, fixtures, deep clean.		€19,745
(€10,770–€28,720)
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)€1.2M

Gross yield (asking price)

6.3%

True gross yield (all-in)

5.5%

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: 2
Building: 359 m²
Land: 19850 m²
Style: portuguese-traditional
Condition: good
Year Built: 2005
Energy Certificate: C
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

large outdoor terracestraditional Portuguese architecturestone chimney

Score Breakdown

ROI
15.68
Visual Appeal
10.8
Ownership Security
13
Location
8.4
Land & Space
12
Rental Demand
3.75
Payback Speed
2
STR Suitability
3

Description

We present this high-quality villa, located in a peaceful area, just 5 minutes from Praia da Luz and the historic center of Lagos. Set on a large plot, the property combines comfort, privacy, and easy access to beaches and amenities. Property Features 3-Bedroom Villa 359 m² of built area 3 spacious bedrooms, including

Location

📍 37.1058°N, 8.7239°W

· Lagos, Algarve, Portugal

View on Mimosaproperties - Real Estate →Also on Idealista.pt
Idealista.pt
Lagos / Western Algarve

Detached house, Urbanização Melody, 5, Ferrel, Luz

Inventory
4 Beds
Bathrooms
2 Baths
Built Area
359 m²
Land Plot
19850 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 4.3% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score69
GradeB+
Brixfox Intelligence
69B+Strong
Score Breakdown
ROI & Yield76%
Capital Growth72%
Risk Profile71%
Market Demand69%

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
+9.8%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+5.5%
+$304K in 5yr (+28%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
4.3%
$4,244/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
10 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
23.5 yr
Rental only

Property details

Year built: 2005
Energy: C
Condition: good

Description

We present this high-quality villa, located in a peaceful area, just 5 minutes from Praia da Luz and the historic center of Lagos. Set on a large plot, the property combines comfort, privacy, and easy access to beaches and amenities. Property Features 3-Bedroom Villa 359 m² of built area 3 spacious bedrooms, including

Income Breakdown

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Nightly Rate (ADR)
$745/night
50% ($342)Brixfox estimate($745/night)200% ($1370)
Occupancy
38%
10%Brixfox estimate(38%)100%

Short-Term Rental

Yearly income
$50,926
Airbnb data$745/night · 38% occupancy
Rental income
$745/night · 38% occ.
$101,959
Running costs (20%)
Utilities, cleaning, maintenance
-$20,392
Income tax (10%)
Indonesian rental income tax
-$28,548
Property tax
Annual property tax
-$2,092
Net income
4.3% ROI
$50,926

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$1,195,652
IMT (transfer tax, investment schedule)$71,739
Imposto de Selo (stamp duty)$9,565
Notary & registration$1,359
Legal / due diligence$17,935
Total acquisition costs$100,598
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$21,462
($11,707–$31,217)
Furnishing & STR launch
4bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$38,641
All-in investment$1,356,353

Gross yield (asking)

8.5%

True gross yield (all-in)

7.5%

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.

$6.7M$5.0M$3.3M$1.7M$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $1.1M
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 19: rental income alone has repaid the full purchase price.
2x return
Year 11: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$1.3M
+22%
Rental Income
+$249K
Total Position
$1.6M
+44%
7.6%/yr
Year 10
Capital Value
$1.6M
+48%
Rental Income
+$537K
Total Position
$2.2M
+97%
7.0%/yr
Year 20
Capital Value
$2.4M
+119%
Rental Income
+$1.3M
Total Position
$3.7M
+234%
6.2%/yr
Year 30
Capital Value
$3.6M
+224%
Rental Income
+$2.2M
Total Position
$5.8M
+427%
5.7%/yr

Location

Lagos

Western Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Average
4.3% annual return
Occupancy
Weak
38% average occupancy
Nightly Rate
Strong
$685 per night
Visual Appeal
Average
5/10 instagrammability
Size & Space
Strong
19850 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $685 — positioned in the top tier
Generous 19850 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 4.3% 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.
4.6%
$4,581/mo
40% occ.
6.2%
$6,167/mo
38% occ.
5.8%
$5,773/mo
current
48% occ.
7.4%
$7,359/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.