Project | Brickfy

Espronceda

Platform: BRICKSTARTER
Type: LENDING

Open for investment

Loan not yet issued.
Crowdlending Project
(Campaign open!)
Amount Available:
€507.17

General Information


LENDING

REAL ESTATE

BRICKSTARTER

BB+

Monthly


Financial Information


€102,866.51

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€507.17

€5.00

4.35 %

6.13 %

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Important Dates

1826

2022-12-22

2027-12-22

5 y. 22 d.


Description

Information about the appartment

We present our new investment opportunity focused on the medium stay or coliving (non-holiday property), which is giving us such a good result.

We had spent many months studying the town of Elche and it has cost us a lot to find this first opportunity because, as you know, we do not like to risk or speculate. It is a bank opportunity that has cost us a lot to audit and negotiate.

In addition to its good condition, location and distribution, we can highlight the acquisition price, as one of its essential characteristics, since we acquired it at an average of 450 euros per square meter, (42% below its market price).

The property has a rectangular shape which will allow us to make the most of its surface reforming it to obtain 5 rooms (all with natural light) and 2 complete bathrooms.

Acquiring the property at such a competitive price allows us to obtain very high profitability, with a stable and constant flow of income over time.


Project summary

Undoubtedly, we are facing a great opportunity, this property is located in an area of high demand in the municipality of Elche.

It is a spacious property (100 square meters), located on a third floor of rectangular plant, which we will reform to obtain 5 bedrooms and 2 bathrooms, making the most of its distribution to maximize the benefits. As a common area we will keep a large kitchen that will also serve as a dining room.

Although the property is in good structural condition, the bathrooms, paint, doors and flooring will be updated to give it a premium finish, adding more value to the asset. As always, the furniture, appliances and other equipment will be renovated to be rented on a coliving basis.

The property is very well located in a very consolidated and high demand residential area, because it has all the services of a residential neighborhood (such as supermarkets, pharmacies, medical centers, gyms and even a shopping center). It is also well located from the CEU Cardenal Herrera University and the historic center.

The main reasons to invest in this opportunity are:

  1. Price: It has achieved an unbeatable price for the property. Allowing to obtain an average price of 450 euros per square meter, 42.23% below its current market price.
  2. Condition: Currently, the apartment is in good condition. However, the apartment will be refurbished to add an additional bedroom and bathroom, as well as an overhaul to make it fully ready to be rented with a premium finish.
  3. Typology: it is a property with 5 rooms, suitable and ideal for coliving. In addition, it will have 2 bathrooms and a large kitchen that will serve as a common area. The property, rectangular, is perfectly distributed.
  4. No legislative risk. It is a property that is 100% free of encumbrances or registry encumbrances. In the same way, as it is ideal for coliving, it does not depend on administrative licenses for its exploitation.
  5. Location: Very centrally located just a few minutes walk from the main points of interest of the city:
  6. Versatility: Although it is an ideal apartment for coliving, it can also accommodate families. In summer many similar properties are dedicated to vacation rentals. As it is an occasional activity, no license would be needed. It should be remembered that Elche has 3 properties inscribed on the UNESCO World Heritage List.
  7. Potential: The characteristics of this property, and above all its acquisition price, give this property a very high potential for revaluation and to generate recurring income.
  • Supermarkets: 3 minutes (260 meters)
  • 24h pharmacy: 3 minutes (290 meters)
  • Sports club: 4 minutes (300 meters)
  • Asisa Elche Medical Center: 4 minutes (400 meters).
  • San José Market: 6 minutes (450 meters)
  • Corte Inglés' Shopping Center: 9 minutes (750 meters)
  • CEU Cardenal Herrera University - Elche Campus: 6 minutes (500 meters)
  • Theater and Theater School: 7 minutes (500 meters)
  • Historical center: 11 minutes (900 meters)
  • Hospital del Vinalopó, Elche: 13 minutes (1100 meters)

Market research

We present you our new investment opportunity focused on medium stay or coliving (non-holiday real estate). In line with our latest acquisitions that are giving us such good results.

As we commented previously in our Blog entry, the real estate market in Elche presents excellent investment opportunities, with returns that we do not find in other markets in which we already operate.

We present you a brief summary of the data obtained from our market study, which shows that Elche is one of the most interesting municipalities (for real estate investment) of all the national geography:

  1. Elche is the 19th most populated municipality in Spain, with 234,205 citizens registered in 2021. Second most populated municipality (excluding municipalities that share name with provincial capitals), only surpassed by l'Hospitalet de Llobregat. It surpasses in census population municipalities such as Granada, Pamplona, or Almería.
  2. Elche is the tenth municipality with more than 200 thousand inhabitants with the highest population growth in the period 2013-2021.
  3. It has 2 universities, Miguel Hernández University and Cardenal Herrera University (CEU), with more than 20,000 students between the two and growing annually with the incorporation of new degrees (CEU started the academic year 2022 with a 23% increase in students, with the incorporation of a new degree in dentistry).
  4. Regarding its real estate market:
  5. Elche is the tenth municipality with more than 200 thousand inhabitants with more census population growth in the period 2013-2021.
  6. It occupies the 3rd position of the Spanish municipalities with the highest profitability ratio per property, understood as the ratio between the average rental price and the average purchase price per square meter, in the ranking of municipalities with more than 100 thousand inhabitants.
  7. It occupies the 6th position in the ranking of Spanish municipalities (with more than 200 thousand inhabitants) with the lowest supply of apartments for rent.
  8. It occupies the 6th position (again) in the ranking of Spanish municipalities (with more than 200 thousand inhabitants) with less supply of rooms for rent.

After analyzing the above data, we have taken the data of apartments for sale and for rent in the municipality, allowing us to detect the best real estate opportunities. Once again we have looked for opportunities below market price, and we have estimated the potential income according to the typology of each property. Both the rental of the entire property, as well as the rental of rooms.

Specifically, this property is located in a very consolidated area, with easy access to main roads, industrial estates and supermarkets, perfect for the client profile we are most interested in, those with stable work.

Our estimation tool assigns the potential income according to the typology of each property (location, number of bedrooms and bathrooms and surface area) and therefore allows us to locate the best opportunity in absolute terms. In this case we obtain an average income of 240 euros per month per room, although for our business plan we have foreseen a lower income (we prefer to be cautious).

It should be noted that we already have a list of candidates interested in the apartment, this is done through the publication of 'ghost' ads on major web portals, to allow us to identify potential demand for rooms in the area.


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