oren.james
Developer
A gross yield near 3.5% leaves little room for omissions. My particular concern is that the projected €1,091 monthly rent may look acceptable until insurance, management and tenant turnover are fully costed against the €377,200 purchase price.
This is a 3-bed Madrid condo. The model assumes eleven paid months each year and includes routine maintenance plus money for a larger repair, but I am not yet convinced the reserve is adequate. Financing would make a marginal result even more sensitive.
Before deciding, I need verifiable figures for property tax, building or community charges, insurance and the management agreement. Which line item tends to be missed or understated in Madrid, including costs between tenants? I am also interested in what net return others would need for this combination of price, rent and risk.
This is a 3-bed Madrid condo. The model assumes eleven paid months each year and includes routine maintenance plus money for a larger repair, but I am not yet convinced the reserve is adequate. Financing would make a marginal result even more sensitive.
Before deciding, I need verifiable figures for property tax, building or community charges, insurance and the management agreement. Which line item tends to be missed or understated in Madrid, including costs between tenants? I am also interested in what net return others would need for this combination of price, rent and risk.