M2M Best property investment return case study: 500-850k€

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 working with Moving2Madrid will give you a very good rental yield on your investment property.

You will see detailed information, including photos, on the following two case studies:

Historic first floor, light-filled apartment situated on a narrow street
Apartment with premium characteristics on a border street

Summary: If you buy a property in the 500-850k€ 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 investor in Case Study #1 achieves a 6.2% rental yield. The investor in Case Study #2 achieves a 5.5% rental yield.

1–Historic first floor, light-filled apartment on a narrow street

This property is located on Calle San Nicolas. It has two balconies with views of the oldest church in Madrid, San Nicolas. This historic church dates back to 1202. Although it is a first floor apartment, which are considered less desirable than apartments on higher floors, it has seven windows. That, and its historic location, allows it to achieve an excellent rental yield.

: The apartment features a large open living space, which is appealing to Aibnb customers that want an apartment of this size

: The spacious living room has three sofa beds

: The first of four bedrooms

: This bathroom features a full size bath, a washer and a dryer

: The second of four bedrooms

: Both bathrooms have showers

: The third of four bedrooms

: All four bedrooms have excellent natural light

The apartment

This 100 m2 apartment was purchased for 464,000€. It has four bedrooms, two full sized bathrooms and seven windows. It is located on the first floor, on the exterior. The building has an elevator.

Additonal closing costs on this apartment were 64,818€.

The refurbishment

The refurbishment costs for this apartment were 100,000€.

The total cost of this apartment, including the refurbishment and closing costs, was 628,818€.

The property investment return

Its monthly average rental revenue is 4,467€, which equates to 53,600€ per annum.

The property costs 14,532€ per year to maintain. Property management fees are 10,720€ per year. Community fees are 1,020€, gas, electricity and internet amount to 2,092€. The balance goes towards home insurance and taxes.

The property’s pre-tax return is currently 39,068€, which gives a rental yield of 6.2%. This is well above the Madrid market average of 4%

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

2–Apartment with premium characteristics on a border street

This property is located on the border of Sol and Lavapiés. Sol is arguably the best neighborhood for short-term rentals in Madrid and property is expensive: it was 5,263€/m2 at the end of 2018. Lavapiés, alough rated the Coolest Neighborhood in the World by TimeOut magazine, is still an up and coming neighborhood. Property in this neighborhood cost 4,239€/m2 at the end of 2018: a 20% discount to that in neighboring Sol. Although this property is technically located in Lavapiés, its close proximity to Sol allows it to achieve a very good rental yield.

: This lovely apartment has been fitted with many French doors to open up the space

: The TV room is elegant but still comfortable

: The beautiful contemporary kitchen also has a small snack bar

: There is even a small study/library

: Floor to ceiling glass doors gives the apartment a luminous intensity

: The second of five bedrooms

: The first bathrroom has two sinks and a large shower

: The second bathroom features a full sized bath and shower

: The third of five bedrooms

: The third bathroom also features a large shower

: The fourth of five bedrooms

: The fifth of five bedrooms

Calle Duque de Alba Airbnb link