Estimated return:
IRR: 11.61%
Under Management
Benasal Apartamento A
Castellón de la Plana
Funded
77.977 € (100%)
Total
77.977 €
292 investors
Under Management
Total operation amount
77.977,03 €
Mortgage
0,00 €
Total to fund
77.977,03 €
Internal Rate of Return (IRR)
11,61 %
Gross rental yield
12,31 %
Net rental yield
5,49 %
Cash on Cash
7,32 %
Financial return (ROE)
5,49 %
Investing in this product involves the risk of losing some or all of the capital invested. Past or estimated returns do not guarantee future returns.
Total operation: Total investment in the project.
Mortgage: Bank financing that will be requested to carry out the project.
Total to fund: Funding requested from investors.
IRR: Return offered by the investment.
Gross rental yield: Total annual rental income from the property divided by the total cost of the operation.
Net rental yield: Investor rental return (after deducting all project costs) relative to the total operation.
Cash on Cash: Income obtained by the shareholder relative to their investment.
ROE: Net financial return for the shareholder.
Renovation / works
40.000 €
Estimated term
5 years
Why invest in this apartment?
Also suitable for traditional rental
Estimated demand for this type of property.
Project in which value is added
transforming a commercial space into 3 residential units.
Apartment information
This investment project is mainly characterized by four elements:
- This is a property that comes from a banking institution and that we acquired at a discount to its market value according to our analysis.
- We will carry out a change of land use, transforming part of the commercial space into housing, a much more expensive type of land.
- We will develop a spacious, very well-laid-out apartment with 2 bedrooms and 2 bathrooms.
- Once the property is completed, the stipulated sale price will be in line with the current market price, with an estimated return that is not guaranteed.
Regarding the property itself, the market study reports the following:
- It has been acquired at a price below market value according to our analysis. Specifically, the price of the finished property amounts to €77,977, while the fair market price is €91,627 and the estimated potential future price could reach €93,572, with no guarantee.
- Demand for residential land: This is a property that, according to our analysis, has demand due to residential demand and its location. Once transformed, this property will have two bedrooms and two bathrooms, ideal for small families and professionals.
- Location: The property is strategically located. Surrounded by pharmacies, supermarkets, public transportation and parks, and a few minutes from hospitals and educational centers, it supports the quality of life of its future residents.
- Change of use: The transformation from a commercial space to housing may increase its value. This change of use improves the functionality of the space and may make it more attractive in the market.
- The investment in refurbishment is minimal. The property is in good condition and only requires the modifications needed to turn it into a functional, modern home.
Regarding the proposed financial transaction, we can summarize:
-
The estimated internal rate of return (IRR) is 11.61%. This is an estimate that does not ensure a return on the initial investment.
-
Estimated cash-on-cash return of 7.32%. It reflects the estimated capacity to generate liquid income from the invested capital, without a positive cash flow being guaranteed.
-
Expected appreciation of the property. With a projected increase in the property's value up to €98,041, the investment could generate a capital gain, with no guarantee.
-
Stability and high demand in the area. The location in an area with high residential demand and a stable trend in real estate prices supports the outlook for the investment, without guaranteeing its outcome.
With these characteristics and projections, this investment is proposed in the real estate market of Castelló de la Plana. The financial projections are estimates and do not ensure profitability or long-term stability.
Technical specifications
City
Castellón de la Plana
Neighborhood
Castellon de la Plana
Year built
1968
Cadastral reference
2698302YK5229N0001LP
Property type
Coliving
Investment type
Residential
Square meters
66
No. of bedrooms
2
No. of bathrooms
1
Manager
Brickstarter 004
Developer
Brickstarter
Residential area
Close to pharmacies, supermarkets and hospitals.
Very close to the center
Connected to public transportation.
Close to Avenida Valencia
The city's main artery.
Documentation
Issues
The works on the property were completed at the end of March. From that moment on, we began all the procedures necessary to complete the horizontal property division and the change of use, with all the documentation prepared and submitted to the notary.
However, when the file reached the Land Registry, the registrar requested an additional, unforeseen requirement: an agreement of the Owners' Meeting authorizing the segregation of the properties. It is important to clarify that this permission was not necessary for the change of use, but was for the segregation, according to the registrar's own interpretation of the regulations and of the community's bylaws.
Situations like this, although not common, are part of everyday life in real estate development and are not completely predictable.
After talking with the owners, it was agreed to call an extraordinary meeting, which was finally held on September 10, with the authorization granted at the second call. As it was not a universal meeting, the law requires waiting one month in case absent owners file objections. Once that period had elapsed, we received the final minutes at the end of October.
With the minutes now available, we have resumed the process with the notary and the Registry to complete the registration of the horizontal property division and the change of use. Our goal is to have this procedure completed before the end of the year.
In parallel, we have received inquiries from potential buyers for these units, and we hope to be able to close the sales as soon as the Registry completes the registration, although we cannot guarantee the timing.
We will keep you promptly informed of the final progress.