Closed for investment
Information about the apartment
Brickstarter is back in Alicante with this fantastic opportunity with the lowest price per square meter, so far, for this type of property (25% below the current market price). This studio with a private patio will delight their guests due to its excellent location.
This is the apartment below their previous opportunity “Central Market Attic”, and as Brickstarter told us they had to “create” this opportunity, as this kind of opportunity does not longer exist in the market. Brickstarter had to buy the whole building and split it in different properties so they could get a lower price per square meter. By acquiring the entire building, they are also avoiding regulation problems.
This property will also benefit from having the attic upstairs as they will be able to host larger guest groups by combining both apartments and increasing the price per guest.
The apartment has a great location as it is a few meters from the historic center and only a 5-minute walk from Central Market and 2 minutes from the bull ring.
On this occasion, Brickstarter is adding a lot of value to this property as it is not possible to obtain the vacation rental license in this area unless you own the whole building (which we´ll do). Last, but not least, the regulation makes it possible to build an extra apartment on top of the building. They won´t be doing this, but this possibility adds a lot of value for the future and will let us sell the whole building at a higher price.
This property is perfectly located just one step away from the historic center, very close to the Santa Barbara Castle, the Postiguet Beach, and Central Market. The location is perfect for both short and medium-term stays.
Although it is a large apartment, almost 70 square meters, Brickstarter has decided to keep it as a studio in order to keep it more spacious and bright. The apartment has a private patio, which they will decorate in order for our guests to enjoy.
As mentioned, the fact that Brickstarter is buying the entire building will let them acquire this apartment at a very competitive price. Also, as they will be controlling the whole building, they will make sure that there´s no problem getting the vacation rental licenses, according to current regulations. Brickstarter also considers that it will be easier to sell the property as an investment product, being part of the building than to sell it as an individual unit.
Main reasons why we think this is an excellent investment opportunity are:
- Price: Brickstarter is buying this property at €1214 per square meter. Very cheap in comparison with the price in that area €1617 per square meter.
- Tourist License: Despite being in an area where no licenses are being granted for individual units, they will be able to get the license as Brickstarter will be owning the whole building. This will add a lot of value to the property as the price per square meter where vacation rental properties are allowed is €2529.
- Status: The property is practically new since it was built in 2015. It is a brand new property, in fact, Brickstarter will have to install the kitchen since the apartment has never been used.
- Versatility: These kinds of properties (studios and small apartments with a private patio), are in high demand for short, medium, and long-term rentals. This is a very bright and spacious property, very well distributed, and in an excellent location.
- Typology: One-bedroom and one-bathroom apartments and studios are the most demanded properties by tourists since they are suitable for an individual traveler, a couple, and even small families and groups of friends. The fact of having a patio will make it very attractive and stand out from the rest.
- Potential: It is a property with a lot of potential, not only because of its characteristics and because of price, but also because of the fact that it can be rented with the apartment upstairs for bigger groups.
- Location: the location of the property is excellent, very close to the historic center, and the main points of interest in the city of Alicante. It is literally just 7 minutes walk from the historic center according to google maps. The main walking distances are:
- Central Market: 5 minutes walk.
- Historic Center: 8 minutes walk.
- San Juan neighborhood: 10 minutes walk.
- Town Hall Square: 15 minutes walk
- Postiguet Beach: 19 minutes walk
Purchase price of the property (including renovation): 93.500,00 €
Mortgage: 0,00 €
Cost of initial works: 18.000,00 €
Taxes, paperwork and other initial legal costs: 0,00 €
Company Constitution and Registration: 0,00 €
Other property acquisition costs: 1.028,50 €
Other expenses: 0,00 €
Minimum cash: 600,00 €
Brickstarter Fees (Only purchase): 6.807,97
€Total: 119.936,47 €
Yearly rent income: 12.890,41 €
Amount to be received for the sale: 137.926,95 €
Gross Margin (Sale Price - Purchase Price): 15 %