Two rental homes · Ciudad de la Costa
Two homes for long-term rental
A 438 m² plot and two residential units of approximately 70 m² each in Greater Montevideo.
Request information
- Total budget
- $374–408k
- Investor entry
- from €50k
- Land area
- 438 m²
- Time to rent
- 12–14 months
- Cumulative ROI · 5 years
- 35.7–46.9%*
- Annual IRR · base
- 6.8–8.6%*
Project
- Solar 1, cadastral reference Padrón 47918.
- Two residential units are permitted on the plot.
- Two approximately 70 m² units, each with two bedrooms.
- The final format will be either a two-storey duplex or two single-storey units.
- Water, electricity and sewerage are available; the plot has paved road access.
- The plan is long-term rental followed by a sale or continued operation.
Project materials
Location
Ciudad de la Costa, Canelones Department. The exact point will be published after the transaction closes.
Preliminary budget
The two scenarios reflect the contractor price still under review. All figures are in US dollars.
| Item | Base · $1,500/m² | Target · $1,300/m² |
|---|---|---|
| Solar 1 land | $123,000 | $123,000 |
| Transaction: ITP, notary, agency and registration | $11,070 | $11,070 |
| Turnkey construction, 140 m² | $210,000 | $182,000 |
| Architectural design and permit | $14,700 | $12,740 |
| Water and electricity connections | $3,000 | $3,000 |
| Fence, parrillero and landscaping | $10,000 | $10,000 |
| Contribución Inmobiliaria and construction insurance | $2,000 | $2,000 |
| Contingency | $14,700 | $12,740 |
| Construction management, 5% | $19,424 | $17,828 |
| Total | $407,894 | $374,378 |
Transaction-cost allowance
ITP (Impuesto a las Transmisiones Patrimoniales) is Uruguay’s property transfer tax. The buyer pays 2% of the updated cadastral value set by the Dirección Nacional de Catastro, which may differ from the purchase price. The remaining part of the 9% allowance covers the escribano-notary, agency fee, registration and related closing work. The escribano will confirm the final allocation before closing.
DGI Uruguay ↗IVA + BPS
The current budget does not add IVA and BPS on top. It assumes that the contractor includes both within the $1,300–1,500/m² turnkey construction price.
- IVA · 22%
- Value added tax applied to construction materials and contractor services.
- BPS
- Contributions to Banco de Previsión Social for registered construction labour. The partner’s preliminary estimate is 50–70% of labour cost, or up to approximately 25% of construction cost; the final amount depends on the quotation and labour structure.
- Before construction
- The contractor must confirm a price inclusive of IVA and BPS, itemise them in the final quotation and provide payment evidence.
Rental model
Value growth · scenarios
Downside
1% p.a.
Base
4% p.a.
Upside
6% p.a.
These are planning assumptions, not guaranteed returns. ROI and IRR use the current financial model and will be updated if verified inputs change.
ROI + IRR
Total project return over five years
Year one is construction, followed by four years of rental income and the sale of both units at the end of year five.
| Growth scenario | $407,894 budget | $374,378 budget |
|---|---|---|
| Downside · 1% | ROI 24.5% · IRR 4.8% · profit $99,888 | ROI 35.2% · IRR 6.7% · profit $131,944 |
| Base · 4% | ROI 35.7% · IRR 6.8% · profit $145,487 | ROI 46.9% · IRR 8.6% · profit $175,651 |
| Upside · 6% | ROI 43.3% · IRR 8.0% · profit $176,806 | ROI 55.3% · IRR 9.9% · profit $206,971 |
Why the ROI reaches this level · 4% base growth
- Four years of net rent
- $118,800
- Sale of both homes before costs
- $456,245
- Net sale proceeds
- $434,581 / $431,229
- Total profit
- $145,487 / $175,651
The two figures correspond to budgets of $407,894 and $374,378. The lower initial budget produces a higher ROI while rental income and sale value remain the same.
ROI = (four years of net rent + net sale proceeds − initial investment) ÷ initial investment. The sale model includes a 3% agency fee, IVA on that fee, approximately $2,000 for PH registration and a 10% management fee on the net capital gain at exit.
Key risks and responses
The plot sells before the raise closes
We source a comparable plot in the same geography and with similar economics.
The final contractor quote is unavailable or changes
We build and rent the first unit before completing the second.
The rent is not supported by signed leases yet
A partner real estate agency and relocation bureau will test demand and place tenants.
The participation structure still requires documentation
Ownership, investor rights and distributions will be documented before accepting investment.
Verified
- ✓ $123,000 price and 438 m² plot
- ✓ Permission for two homes
- ✓ Water, electricity and sewerage available
- ✓ Paved road access
Documents available on request
The project package is ready. The manager will provide the supporting materials and explanations directly, as some documents contain commercial and legal information that is not published openly.
- ✓ Contractor quotation and price composition
- ✓ Support for the $1,500 monthly rent per unit
- ✓ IVA and BPS treatment in the construction price
- ✓ Investor participation structure
- ✓ Funding schedule and payment stages
*Yield uses the current rental model and preliminary budget. All performance figures are projections. This material is not a public offer or a guarantee of results.
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