Investments in the economy segment of real estate with a profitability of 15%.

The Atelier M2 team has implemented a unique project in the economy segment of real estate, and we want to share the results with you.

The profitability of the project amounted to 15% per annum, which is 2 times higher than the average indicators in the Kiev real estate market! How did we get it?

Action Plan:

  • Purchase of 3 apartments in the LCD L-block for further lease
  •  Redevelopment in 6 smart apartments
  • Repair
  • Purchase and installation of furniture
  • Lease

The investment was $ 64,000:

45 000 $ - the cost of one apartment under the condition of a batch purchase (taking into account 3% of the commission agent)

19 000 $ - repair and complete complete set of apartment

The Atelier M2 team has been accompanying all the work on the project, from the stage of real estate market analysis, the selection of suitable safe objects, to designing a project and finding tenants.

How did we succeed? Due to the fact that we are well aware of all pitfalls and understand how important it is to optimize costs at each stage of the project.

Namely:

  • At the planning stage, we calculated the optimal operation of the area of ​​the objects.
  •  We implemented a batch purchase of 3 apartments with the same layout and an area of ​​about 45 sq.m.
  • And they have saved on repair by means of wholesale purchases of building materials, furniture, equipment, and also wholesale expenses for work.

Dates:

The waiting time for apartments is 10 months

Time of re-planning and repair - 5 months

Thus, in the year and 3 months all 6 smart apartments were ready for rent.

The cost of renting for one "smart apartment" was:

370-385 $ / month (10 000 UAH / month).

And the total income from rent for 1 apartment, respectively:

740 - 770 $ / month

8 800 - 9 240 $ / year

Annual profitability was: 15%

What is the uniqueness of this project?

  •  First of all, in profitability, which is 2 times higher than the average market. As a rule, high profitability is easier to achieve in a more expensive segment, working with a large area. In economy class comfort with low budgets and an area of ​​up to 100 sq.m. it is almost impossible to achieve high profitability, and even in the absence of risks - the average result for Kiev is 7-8% per annum.
  •  In the maximum comfort for the investor.

The Atelier M2 team oversaw all turn-key stages.

In the context of this project, we can offer you the following:

Option 1

Ready-profitable business is an investment in an already existing project with tenants. In this case, the profitability will be 11% per annum, which is an order of magnitude higher than the average market rates. The size of the investment will be higher as the project is already fully operational, and there are no risks.

Cost and profitability when buying 1 apartment:

The investment is $ 84,000

Rent one smart apartment - $ 370-385 per month

Profitability - 11% per annum

Option 2

Investments with higher profitability in the case of entering the construction phase, but already in other new buildings.