Recent content by LightStone

I’m comparing a 70 m² unit in a mixed-use building with a similarly priced villa in São Paulo. The building option appears easier to maintain, but shared reserves and decisions could mean less control. The villa offers more autonomy, although I may be taking on larger irregular repair, insurance...

My practical sequence: verify achievable rent, reconcile actual condo bills, inspect association finances and planned works, price management for the required scope, obtain financing terms, then rerun both unlevered and leveraged returns.

Ask for two separate written breakdowns: everything payable to complete the purchase, and everything recurring afterward. Otherwise annual charges can disappear inside a reassuring “closing costs” figure. I’d also ask whether the estimate changes with your residency status, intended use of the...

On the income side, using eleven months of rent deals with some vacancy risk, but it does not solve the repair-reserve issue. Build a short list of likely near-term work from the observed condition and keep that separate from recurring service charges and property taxes. Otherwise one generous...

Ignoring appreciation is appropriately conservative, but it does not solve concentration risk. A large amount is tied to one unit, one building and a narrow tenant pool. I would require more margin than for a similarly yielding diversified investment, even if the physical condition is excellent.

That is fair, although a target is still useful for rejecting weak deals. I’d run three cases: full expected rent with routine costs, a turnover year with vacancy and refresh work, and a bad year combining vacancy with an extraordinary building charge. If the investment only looks acceptable in...