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LAND FOR SALE IN BUDVA
The total area of land is 6 000 m2. It is approximately 700 meters far away from the sea and has a beautiful view. All town plans have been accepted and the following step is to obtain approval and to make a main project in order to acquire the construction license.
DUBOVICA 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 a new apartment building of 7 700 m2 brutto over ground made possible due to land configuration and an underground parking and depot of approximately 2 250 m2 brutto. The aim is to exit within a 1, 5 year period from beginning of construction.
The Investment Amount to be made by Investor nears to the sum of €8,446,000
The Total Cost Amount including acquisition, construction and related expenses is approximately 8.45 Million Euros. The market value of the property after construction is estimated to be near the amount of €17,725,000.
SELLING SCENARIO:
Over ground residential-m2 net value 6,400
Selling price/m2 €2,500
Sale Value €16,000,000
Parking spaces underground* 90
Selling price/parking space €15,000
Sale Value €1,350,000
*Total m2 of underground parking space is 2 250 m2
Parking spaces ground 50
Selling price per m2 €7,500
Sale Value €375,000
TOTAL SALE VALUE €17,725,000 plus 17%VAT of €3,013,250 (called IN VAT)
P & L ASSUMPTIONS
Property price plus tax for buying the property (3%) €2,884,000
Agency fee 3% plus lawyer fee of € 5000 equals €89,000 plus 17%VAT of €15,130 (called OUT VAT*)
Administrative expenses (office, phone, tickets, salaries etc.) €192,000
PROPERTY SUBTOTAL €3,165,000
Total construction cost €4,620,000 plus 17%VAT of €785,400 (called OUT VAT)
Total architect, project drawings €149,250 plus 17%VAT of €25,373 (called OUT VAT)
Total city tax €512,000 plus 17%VAT of €87,040 (called OUT VAT)
TOTAL PROJECT COST €8,446,250 plus 17%VAT of €912,943 (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 €17,725,000
TOTAL PROJECT COST €8,446,250
TOTAL IN VAT €3,013,250
TOTAL OUT VAT €912,943
PROFIT TO INVESTORS BEFORE INCORPORATE TAX OF 9% - €7,178,443
PROFIT TO INVESTORS AFTER INCORPORATE TAX OF 9% - 6,532,383
