Investing in a 4-bedroom apartment in Barranco, Lima

Let's start with the one number I trust here: a 4-bedroom apartment in Barranco returns about 3.6% gross on the long-term rental market. That's before you subtract anything -- no maintenance, no vacancy, no management, no taxes. So the net figure you actually live on is lower, and 3.6% gross is not a yield that gets me excited.

On Airbnb, I have nothing solid to give you. The short-term rental data for 4-bedroom units in Barranco is too thin to draw a conclusion. I'm not going to guess a number and dress it up as analysis. If someone tells you they know what a 4-bed short-lets for in Barranco, ask them how many comparable listings they actually looked at.

Because I can't compare the two strategies, I can't tell you which one wins. Right now the only defensible plan for this apartment is long-term rental at roughly 3.6% gross, and you should underwrite it on that basis alone.

Who does a 4-bed in Barranco suit? Realistically, not someone chasing yield -- 3.6% gross doesn't compete with far simpler options. It makes more sense if you want the space for yourself, value living in Barranco, and treat any rental income as a bonus rather than the reason for the purchase. This isn't investment advice, just the numbers as I read them on the ground.

Related: Barranco overview · Best district by size