M2M Best property investment return case study: 375-500k€

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 case studies:

  1. Life style investment with a safe return
  2. Great location on an over-looked street

Summary: If you buy a property in the 375-500k€ 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 4.9% rental yield. The investor in Case Study #2 achieves a 5.2% rental yield.

1–Life style investment with a safe return

This property is located in the neighborhood of Opera/Madrid de los Austrias, close to the Royal Palace. Its owners wanted a place they could spend time in and enjoy, while still earning a solid return on their investment. It has a large living room, great light and is located on a quiet little plaza. These features make it very easy to rent both short and long term.

The apartment

This 81 m2 apartment was purchased for 396,000€.  It has two bedrooms, a full sized bathroom and four windows. It is located on the third floor, on the exterior. The building has an elevator.

Additonal closing costs on this apartment were 55,598€.

The refurbishment

The refurbishment costs for this apartment were 30,000€.

The total cost of this apartment, including the refurbishment and closing costs, was 481,598€.

The property investment return

This apartment is rented on Airbnb. Its monthly average rental revenue is 2,814€, which equates to 33,763€ per annum.

The property costs 10,001€ per year to maintain. Close to 70% of this is property management fees: they are 6,753€ per year. Community fees are 1,020€, gas, electricity and internet amount to 1,628€. The balance goes towards home insurance and taxes.

The property’s pre-tax return is currently 23,762€, which gives a rental yield of 4.9%. This is comfortably above 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– Great location on an over-looked street

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

As we often state, the way to get a great return is to find an apartment with a perceived flaw. This apartment, although extremely well located, is on Calle Desengaño. In Spanish, this translates to Disillusioned Street. Thus it is not a popular street with superstitious locals. However, this apartment performs extremely well in the short-term rental market. All of its reviews are 5 stars and it achives a rental yield of 5.2%- well beyond the Madrid average of 4.6%.

Calle Desengaño Airbnb link

The apartment

This 91 m2 apartment was purchased for 430,000€.  It has two bedrooms, one 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 60,208€.

The refurbishment

The refurbishment costs for this apartment were 30,000€.

The total cost of this apartment, including the refurbishment and closing costs, was 526,208€.

The property investment return

This apartment is rented on Airbnb. Its monthly average rental revenue is 3,167€, which equates to 38,000€ per annum.

The property costs 10,898€ per year to maintain. Property management fees constitute over 75% of this: they are 7,600€ per year. Community fees are 1,020€, electricty, gas and internet fees sum to 1,628€ and the rest of the yearly maintenance costs go to taxes and home insurance.

The property’s total before-tax return is currently 27,102€, which gives a rental yield of 5.2%. 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 275-500k€ range with rental yields in the 4.9%-5.2% 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 9 April, 2019 by maryclare in Return on investment, New ? Start Here

banner

One response to “M2M Best property investment return case study: 375-500k€”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.