Short-Term Rental Apartment in the Alentejo for a Yorkshire Investor
€185,000 · 20 years · 3.55% fixed 5 yrs. A Yorkshire property investor identified an opportunity in Portugal's inland Alentejo region - a restored stone cottage in a medieval village being marketed to the growing slow...
The Client
Buy-to-Let Investors Abroad
The Challenge
A Yorkshire property investor identified an opportunity in Portugal's inland Alentejo region - a restored stone cottage in a medieval village being marketed to the growing slow-tourism market. The low purchase price and strong Airbnb income projections attracted him but the rural location made some lenders cautious.
Our Solution
Doulton placed the mortgage with a regional Portuguese lender familiar with Alentejo rural property. The Airbnb income projections were supported by comparable let data from the same village. The investor's UK income was used as the primary affordability assessment.
The Outcome
Cottage purchased and listed on Airbnb and Booking.com. Average occupancy in the first year: 68%. Gross rental yield: 9.2% on purchase price - well ahead of projections. Key highlights: Rural Alentejo property accepted; Airbnb projections supported by local comparable data; Gross yield of 9.2% - ahead of initial projections.