Stone House with Sea View and Large Plot

Unlock the Potential of a Coastal Gem

Investing in real estate is not merely about the structure; it is also about the promise of a vibrant community, a breathtaking environment, and the potential for substantial returns. This stone house in Dobrota, Kotor, embodies all these qualities, making it a prime opportunity for savvy investors.

Captivating Views and Rustic Charm

Perched in the scenic locale of Dobrota, this stone house is enveloped by the natural beauty of the Adriatic Sea. Imagine waking up to the soft sounds of waves and the golden glow of the sun reflecting off the water, all from your very own home. The 300 m² living space, divided among two floors and an attic, offers a canvas rich in heritage and rustic charm. Its stone façade tells a story of resilience and warmth, inviting you to reimagine its interior—transforming it into a stylish home or a welcoming holiday rental.

Prime Location: Kotor and Its Surroundings

Nestled within the UNESCO World Heritage-listed Kotor Bay, you are not just investing in a property but embedding yourself within a thriving cultural and historical context. The surrounding area is home to charming cafés, artisan shops, and seasonal festivals that bring the local community together.

Furthermore, Kotor’s strategic location allows for easy access to numerous stunning beaches, historic towns, and majestic mountains. This is a region that attracts tourists year-round, from summer sun-seekers to winter sports enthusiasts.

Development Opportunities Await

The expansive 700 m² plot provides ample space for further development. Picture transforming the 200 m² garden into a flourishing outdoor haven, or leveraging the additional 500 m² area for construction. With existing approvals for new builds, you could construct a luxurious villa or seaside apartment complex that caters to the growing influx of tourists seeking a unique experience in Kotor.

Imagine offering future guests not only a beautiful vacation home but also the allure of historical Kotor’s rich architecture and stunning views. With many travelers eager to immerse themselves in local culture, creating unique rental spaces could become highly lucrative.

Financial Viability: Analyzing the ROI

In terms of financial strategy, this property is a puzzle waiting to be solved. An annual income estimation illustrates the potential profitability. Based on seasonal rental trends, summer rentals draw approximately 200€/night and winter rentals could average 80€/night, adding to a compelling revenue stream.

Calculating a realistic occupancy rate, let’s assume a steady 60% throughout the year. You can expect an estimated annual income of:

Annual Income = (200€ * 90 days) + (80€ * 275 days) = 18 000€.

Now, if we consider the initial investment costs—inclusive of purchasing the property at approximately 200 000€ and a renovation budget of 30 000€—the overall investment sums up to 230 000€.

The basic ROI calculation would appear as follows:

ROI = (Income – Investment) / Investment * 100 = (18 000€ – 230 000€) / 230 000€ * 100 = -92.17%.

At first glance, this negative value may seem daunting; however, every cloud has a silver lining.

Long-Term Growth and Appreciation

The real estate market in Kotor is underpinned by a growing tourist economy, making it a promising locale for appreciation over time. As the demand for quality lodging continues to rise, so will the rental values. By focusing on renovations that enhance the property’s charm and functionality, you could turn this lovely stone house into a high-demand rental unit, considerably shifting your ROI into positive territory in the coming years.

Consider the future: As Kotor becomes more popular, properties like yours will only become more sought after. The current market dynamics, combined with a strategic approach to property management and development, can create a path to significant appreciation and a robust return on investment.

Conclusion: A Wise Investment in Kotor’s Coastal Paradise

This extraordinary stone house in Dobrota stands as an inviting opportunity for investors willing to look beyond the immediate financial figures. The melding of nature’s beauty, historical depth, and community vibrancy promises not just a property, but a lifestyle rich in potential. Embrace the charm, envision the possibilities, and unlock the future of your investment in Kotor’s enchanting landscape. Contact us today to embark on this exciting journey!