Description

Four-storey brick house. The state of the object is before reconstruction. The house has a total of 13 apartments, including 10 apartments have two rooms, 3 apartments - two bedroom, basement, attic space. Attic spaces have an area of 147 sq. m.
The calculation of yield when the leasing object. The calculation is based on market prices for the property in this area of Prague. Utilities are paid by tenants, therefore the following amounts are net income. 1. One-bedroom apartment - 500 Euro per month. A total of 5 000 euros. 2. Two-bedroom apartment -700 euros per month. Total - 2 100 euros. Total: 7 100 euros per month or 85 200 euros per year.
The calculation of yield at the sale of the apartments. Calculations are made in accordance with the actual price in the area for comparable properties. Prices for new property in the area is 2 250 Euro per 1 sq. m. Based on the total cost for this project is the price for 1 sq. m. is equal to 1 689 euros. Actual size = 651 sq m. Based on these data: 2 250-1 689 = 561 euros per sq. m. - profit. The total profit from sales: 561 x 651 = 365 211 euros.
Calculation of net profit and taxation. Tax on income of physical persons - 15 %. The tax on the sale of real estate - 4 % of the sale price. The total profit from the sale: 608 x 977 = 365 211 euros. The tax on the sale of real estate equal to the total sale value of the object(1 102 000 + 365 211) = 58 688 Euro. Profit tax - 15% from 365 € 211 = 54 781 euros. Net profit: 365 211 - 58 688 - 54 781 = 251 742 Euro. There is a possibility to significantly reduce the data amount by sale of apartments in a phased manner.
The apartment house is located in Prague 5, which is called Smichov. Smichov center of the left Bank of Prague.
Private property. The cost of the house - 922 000 euros. Project management (full transaction processing - repair facility - rent/lease) - 2.5% of the purchase price - 23,000 euros. Repair work in apartments (including electrical, heating, painting, painting works, materials) - from 6000 to 13 000 euros per apartment (depending on size of apartment). On average 9 000 euros per apartment (to be determined in more detail for cost estimates). Repairs porch - an average of 2,000 euros to the floor. Plumbing, finish kitchen - to be determined individually, as 50% of apartments are sold with a fine finish. Fixtures, design of staircase - determined individually in the preparation of estimates. The facade of the house is about 30 000 euros. Total: 922 000 + 23 000+ 9 000 x 13 + 5 x 2 000 + 30 000 = 1 102 000 euros.

Posted Aug 25, 2015

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