« Back to OPPORTUNITIES FOR INVESTORS 026 PBU
LAND FOR SALE IN BUDVA (SEOCE)
The total area of land for sale is 3 000 m2.
The land is located in Seoce, place above Jaz beach, about 3 km from Budva. It has a beautiful sea view and it is only 300 m far away from the sea.
BUDVA, SEOCE 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 5 000 m2 brutto over ground made possible due to land configuration and an underground parking and depot of approximately 1 500 m2 brutto. The aim is to exit within a 1, 5 year period from beginning of construction.
The Investment Amount to be made by the Investor nears to the sum of €4,344,100.
The Total Cost Amount (acquisition, construction and related expenses) is approximately 4.34 Million Euros. The market value of the property after construction is estimated to be near the amount of 10,325,000 €.
SELLING SCENARIO
Over ground Residential m2 net value* 4,000
Selling price per m2 €2,300
Sale value €9,200,000
*Number of apartments average 50 sqms -80
Parking spaces underground* 60
Selling price per parking space €15,000
Sale value €900,000
*Total m2 of underground parking space is 1500m2
Parking spaces ground 30
Selling price per parking space €7,500
Sale value €225,000
TOTAL SALE VALUE €10,325,000 plus 17%VAT of €1,755,250 (called IN VAT)
P&L ASSUMPTIONS
Property price plus tax for buying the property (3%) €710,700
Agency fee 3% plus lawyer fee of €5000 equals €25,700 plus 17%VAT of €4,369(called OUT VAT*)
Administrative expenses (office, phone, tickets, salaries etc.) €192,000
PROPERTY SUBTOTAL €928,400
Total Construction Cost plus VAT (17%) €3,000,000 plus 17%VAT of €510,000 (called OUT VAT)
Total architect, project drawings €95,700 plus 17%VAT of €16,269 (called OUT VAT)
Total city tax €320,000 plus 17%VAT of €54,400 (called OUT VAT)
TOTAL PROJECT COST €4,344,100 plus 17%VAT of €585,038* (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 €10,325,000
TOTAL PROJECT COST €4,344,100
TOTAL IN VAT €1,755,250
TOTAL OUT VAT* €585,038
PROFIT TO INVESTORS BEFORE INCORPORATE TAX OF 9% - €4,810,688
PROFIT TO INVESTORS AFTER INCORPORATE TAX OF 9% - €4,377,726
