Example calculation average yield in the first five years

Purchase cost

 Purchaseprice apartment          € 200,000,--
 Purchase cost         €   27,500,--
 Furniture package            included
 Total investment         € 227,500,--

Forecast gross rental income

Average annual gross rental income first 5 years       €  16.000,--
Average rental yield first 5 years                                                  7%

Prognosis value increase
For comparable apartments, the value is mainly determined by the location.

 Cities like Barcelona         € 400,000,--
 Holiday areas like Malaga         € 350,000,--
 Oropesa del Mar         € 200,000,--

Oropesa in relation to other cities

At the construction of Playa Dorada, just before the crisis, the apartments were offered for € 350,000 each.
Despite the presence of all conditions and requirements in Oropesa to become an extremely popular holiday resort, both the rental and property prices in other popular resorts are still 100% higher than in Oropesa.
This will not last long because tourism to Spain is growing strongly and there is a shortage of suitable holiday resorts.
If the price gap is closed within 10 years, the average price increase will be around 7%.

Forecast average annual gross return on rental and value increase in the first 5 years
Forecast rental income               7%
Forecast value increase              7%