M2M Best property investment return case study: 250-380k€

Read this article to learn the type of return you can expect to receive on your Madrid property investment. You will see two case studies from current clients to see how investing with Moving2Madrid will give you the best property investment return in Madrid.

You will see detailed information, including photos and their Airbnb listings, on the following two properties:

1. Calle Mesón de Paredes, 64
2. Calle de la Luna, 3

Summary: If you buy a property in the 250-380k€ range, you can expect to achieve a return far above the Madrid market average of 4.6%. This is done by employing the Moving2Madrid strategy: find an apartment that other buyers would view as “defective,” then mitigate these defects. The first case study  is in an up and coming neighborhood, as opposed to a premium neighborhood. Its buyer achieves a 6.5% rental yield. The second case study had a challenging layout. Its buyer achieves a 5.0% rental yield.

1-Up and coming neighborhood

This property is located in the neighborhood of Lavapiés. This is the up and coming neighborhood with the most traction. Last year it was named the coolest neighborhood in the world by TimeOut magazine.

Calle Mesón de Paredes Airbnb link

The apartment

This 50 m2 apartment was purchased for 200,000€.  It has two bedrooms, one full sized bathroom and four windows. It is located on the third floor, in the interior. The building has an elevator.

Additonal closing costs on this apartment were 24,180€.

The refurbishment

The refurbishment costs for this apartment were 45,000€.

The total cost of this apartment, including the refurbishment and closing costs, was 269,180€.

The investment return

This apartment is rented on Airbnb. Its monthly average rental revenue is 2,123€, which equates to 25,470€ per annum.

The property costs 8,002€ per year to maintain. Property management fees constitute the bulk of this: they are 5,094€ per year. The balance is spent on utilities, community fees, taxes and home insurance.

The property’s total after-tax return is currently 17,468€, which gives a rental yield of 6.5%. This is far beyond the Madrid market average of 4.6%

Do you want to achieve a similar best property investment return on your Madrid property purchase? If so, contact us today to learn how.

 

2-An apartment with a challenging layout

This apartment is located in the trendy neighborhood of Malasaña, in the Center. This lively neighborhood is filled with bars, cafes and restaurants. It is the heart of Madrid’s legendary nightlife scene.

Calle de la Luna, 3 Airbnb link

The apartment

This 67 m2 apartment was purchased for 380,000€.  It has two bedrooms, one full sized bathroom and five windows. It is located on the third floor, on the exterior. The building has an elevator.

Additonal closing costs on this apartment were 53,428€.

The refurbishment

The refurbishment costs for this apartment were 50,000€.

The total cost of this apartment, including the refurbishment and closing costs, was 483,428€.

The investment return

This apartment is rented on Airbnb. Its monthly average rental revenue is 2,833€, which equates to 34,000€ per annum.

The property costs 10,048€ per year to maintain. Property management fees constitute the bulk of this: they are 6,800€ per year. The balance is spent on utilities, community fees, taxes and home insurance.

The property’s total after-tax return is currently 23,952€, which gives a rental yield of 5.0%. This is far beyond the Madrid market average of 4.6%

 

Conclusion

Our case studies demonstrates that Moving2Madrid clients earn returns that far surpass Madrid market averages. We have clients that have purchased apartments in the 250-380k€ range with rental yields in the 5.0%-6.5% range- well above the Madrid average.

Do you want to achieve a similar best property investment return on your Madrid property purchase? If so, arrange a FREE CONSULTATION to learn how.

 

 

Posted on 27 February, 2019 by Admin in Return on investment, New? Start Here