Estimated Internal Rate of Return (IRR):
The project estimates an IRR of 11.33%.
Under Management
Benasal Apartamento B
Castellón de la Plana
Funded
65.810 € (100%)
Total
65.810 €
301 investors
Under Management
Total operation amount
65.810,08 €
Mortgage
0,00 €
Total to fund
65.810,08 €
Internal Rate of Return (IRR)
11,33 %
Gross rental yield
11,40 %
Net rental yield
5,03 %
Cash on Cash
6,70 %
Financial return (ROE)
5,03 %
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?
Competitive Purchase Price:
The purchase price of the apartment is €65,810, which, according to our analysis, is below market value.
Property Appreciation:
An estimated 20% increase in the sale price is expected, with no guarantee.
Apartment information
This investment is characterized by the following aspects:
- Acquisition at a below-market price according to our analysis: The acquisition price of the property is €65,810, with an estimated potential future price of up to €78,972, with no guarantee.
- High residential demand: The property is located in an area with high demand for housing, according to our analysis, thanks to its location.
- Strategic location: The property is located in a privileged area, surrounded by essential services such as pharmacies, supermarkets, public transport and parks. In addition, its proximity to hospitals and educational centers supports the quality of life of its future residents.
- Change of use: The transformation of the commercial space into housing may increase its value. This change improves the functionality of the space and may make it more attractive in the real estate market.
- Minimal investment in renovation: The property is in good condition and only requires the necessary modifications to convert it into a functional and modern home.
Regarding the proposed financial transaction, we can summarize:
The estimated internal rate of return (IRR) is 11.33%. This is an estimate and does not ensure a yield on the initial investment.
Estimated cash-on-cash return of 6.70%. This reflects the estimated capacity to generate cash income from the invested capital, with no guarantee of positive cash flow.
Expected appreciation of the property. With a projected increase in the property's value to as much as €78,972, the investment could generate a capital gain, with no guarantee.
Stability and high demand in the area. The location in a high-demand residential area and a stable trend in real estate prices support the outlook for the investment, without guaranteeing its result.
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 long-term profitability or 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
45
No. of bedrooms
1
No. of bathrooms
1
Manager
Brickstarter 004
Developer
Brickstarter
Proximity to Essential Services
The apartment is located in a privileged area, surrounded by pharmacies, supermarkets, etc.
High Residential Demand in the Area
The area has a high demand for housing, which could facilitate the search for tenants, with no guarantee.
Convenient Location
With easy access to the city center and public transport connections
Documentation
Issues
The renovation works on the property were completed at the end of March. From that moment on, we began all the necessary procedures to finalize the horizontal division and the change of use, with all the required documentation prepared and submitted to the notary.
However, when the file reached the Land Registry, the registrar requested an additional and unforeseen requirement: an agreement from the Homeowners’ Association authorizing the segregation of the units. It is important to clarify that this approval was not necessary for the change of use, but it was required for the segregation, according to the registrar’s interpretation of the regulations and the community’s bylaws.
Situations like this, while not common, are part of everyday reality in real estate development and cannot always be anticipated.
After discussing the matter with the homeowners, it was agreed to call an extraordinary meeting, which was finally held on September 10th, and the authorization was granted on second call. Since this was not a universal meeting, the law requires a one-month waiting period to allow absent owners the opportunity to file objections. Once this period ended, 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 Land Registry to complete the registration of the horizontal division and the change of use. Our goal is to have this procedure finalized before the end of the year.
Meanwhile, we have received inquiries from potential buyers for these units and expect to be able to close the sales once the Registry completes the registration, although we cannot guarantee the timing.
We will keep you fully informed of the final progress.