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LAND FOR SALE IN BUDVA
The total area of land is 650 m2 with the house of 604 m2m on it.
The area of 2 000 m2 netto is scheduled with the town plan to be used for the construction. The land is 300 m far away from the sea, and has an excellent location.
All town plans have been accepted, and next step is to obtain approval and to make the main project in order to acquire the construction license (from 4-6 months from the date of buying the land).
BUDVA RESIDENTIAL APARTMENTS
Acquisition Strategy incorporates a straight forward conditional offer to be made to the owners, subject to conducting all necessary due diligence.
The Investment Strategy is to acquire and build villas of 2.000 m2 brutto over ground made possible due to land configuration and an underground parking and depot of approximately 650 m2 brutto. The aim is to exit within a 1, 5 year period from beginning construction.
The Investment Amount to be made by the Investor nears to the sum of €5,022,950.
The Total Cost Amount including acquisition, construction and related expenses is approximately 5.0 million Euros. The market value of the property after construction is estimated to be near the amount of € 8,520,000.
SELLING SCENARIO:
Overground residential m2 net value* 2 000
Selling price per m2 € 4,000
Sale value € 8,000,000
*Number of apartments average 76 sqms - 26
Parking spaces underground* 26
Selling price per parking space €20,000
Sale value €520,000
*Total m2 of underground parking space is 650 m2
TOTAL SALE VALUE €8,520,000 plus 17%VAT of €1,448,400 (called IN VAT)
P&L ASSUMPTIONS
Property price plus tax for buying the property (3%) € 2,652,250
Agency fee 3% plus lawyer fee of €5 000 equals €82,250 plus 17%VAT of €13,983(called OUT VAT)
Administrative expenses (office, phone, tickets, salaries etc.) €192,000
PROPERTY SUBTOTAL €2,926,500
Total construction cost €1,770,000 plus17%VAT of €300,900 (called OUT VAT)
Total architect, project drawings € 47,250 plus 17%VAT of €8,033 (called OUT VAT)
Total city tax €279,200 plus 17%VAT of €47,464 (called OUT VAT)
TOTAL PROJECT COST €5,022,950 plus 17%VAT of €370,379 (called OUT VAT)*
*In order to calculate the base for incorporate tax, the OUT VAT deducts from IN VAT, and only this total is deducted from Total Sales Value.
SUMMARY
TOTAL SALE VALUE €8,520,000
TOTAL PROJECT COST €5,022,950
TOTAL IN VAT €1,448,400
TOTAL OUT VAT* €370,379
PROFIT TO INVESTORS BEFORE INCORPORATE TAX OF 9% €2,419,029
PROFIT TO INVESTORS AFTER INCORPORATE TAX OF 9% €2,201,316
