5.38 ha project with $2 million profit potential

Project summary

We are looking for an investor to build cottages on a plot of 5.38 hectares.

The initial investment is $160,000, which is paid immediately - the investor immediately becomes the owner of the plot, so he does not bear any risks. An additional $40,000 is an investment in his own development: arranging a fence, a driveway, and building 1-2 pits to launch sales.

CONSIDERING: BARGAIN, DELAY

Novy Rozdil is currently actively developing, there are many IDPs, there is a military school, colleges, other schools, schools, kindergartens, several factories and the city generally has a stable infrastructure. An industrial park will be built. There is a great demand for new, affordable and inexpensive housing in the city.

So, what is the idea - economy class, affordable housing with an area of about 90–92 m² at a price of 30–40 thousand dollars per cottage.
A minimum of $10,000 in profit from each cottage is planned. With the construction of 100-200 cottages, the profit will be $1-2 million. A swimming pool, playground, and barbecue areas are planned on the territory.

Target audience:
1. IDPs (internally displaced persons) are people who are currently renting housing in Lviv or other cities where rent is very expensive. They want to have their own house, but cannot afford to buy one in the regional center. For them, such a cottage is an opportunity to purchase a new, full-fledged home close to nature, rather than an old house, and at an affordable price. After construction is completed, they will be able to register in the house, since garden houses can be recognized as residential according to Resolution No. 321. For this category, the main idea is to have their own housing near Lviv at a rental price.

2. The local population of Novy Rozdyl, Mykolaiv and neighboring villages are people who want to improve their living conditions, but cannot afford an expensive house or apartment in Lviv. For them, this is an alternative to a city apartment - their own house with land, quiet surroundings and comfort. They see value in being able to live in their own house, have their own territory, and not spend a lot of money. For them, this is an option for a comfortable life without overpayments and bureaucracy.

3. Young families from Lviv aged approximately 25-40 are people who want to have their own house with a small plot, but in Lviv it is too expensive. For them, such a cottage is an opportunity to buy housing at the price of a city apartment, but have more space, peace and nature nearby. This is an option for those who want to leave the city bustle, but still be close to Lviv. By car in the morning to Lviv 30-40 minutes. To Novy Rozdyl 3 minutes by car from the plot on an ideal new road, there is a bus service right near the plot, a school bus runs.

4. Small and medium-sized investors are people who are looking for profitable land plots with potential, but without complicated permits and risks. They are interested in profit, not residence. They can invest in buying land and building several cottages for further sale or rental. The profit can be 25-40 percent. For them, the main advantage is a transparent scheme, simple construction, minimal bureaucracy and a projected profitability from renting out.

5. People looking for a dacha or a second home are mostly residents of Lviv or the region who want a place to relax. They don't want to buy an old dacha that needs renovation, and are looking for something new, modern and with communications. For them, this cottage is an opportunity to have a new dacha near the forest, where you can relax with your family, spend weekends, grill barbecues and just have your own space in nature without unnecessary worries.

For comparison, near Lviv, you can buy 40 acres of land for this money, because the cost of one acre for residential development starts at 3-4 thousand dollars. Here, for the same money, an investor gets a full-fledged plot with the potential to build 100-200 houses and significantly lower bureaucratic risks.

We specifically chose the format of garden houses because it is a simplified construction procedure - it is enough to submit a notice of the start of work, without approvals and without permits from the city council, because residential development must be approved, which is often very difficult to do. And according to Resolution No. 321 of 29.04.2015, garden houses can be recognized as residential and even registered in them. That is, the investor actually receives a residential town, but without a complicated permit system.

Another advantage is that you don't have to build everything at once. It's enough to start with 1-2 pits to launch sales. We can fully support the process: from changing the intended purpose to construction and sales.

The business plan also provides for the procedure for raising funds from buyers of cottages. That is, the investor does not need to think and test how to raise funds from buyers.
Sales are provided through real estate agencies and individual realtors for a sales commission. Advantages: no costs for the sales department, also realtors and agencies have experience, a team, a large client base and are ready to take on marketing and sales.

In addition, in addition to the land and business plan, the buyer receives a cottage project.

Additionally, in the future, you can create a management company - even if each house costs UAH 1,000 per month for maintenance, this gives about UAH 200,000 of passive income per month if 200 cottages are built, with a relatively low cost of maintaining paving stones and mowing lawns.

This is a ready-made business model that can actually bring in $1-2 million in profit if you understand its potential and implement it correctly.

Regarding the current situation: the process of changing the purpose of the plot and terminating the lease agreement is currently underway. It is currently being sold as a commodity production, but at the same time we are changing the purpose to horticulture to make it more attractive for investment. Therefore, the price is now $300 per hundred square meters. After changing the purpose, the cost per hundred square meters will be twice as high - $600/ hundred square meters.

We can also help with turnkey construction or partial construction, as desired by the investor, so there is no need to look for contractors. This is an option where everything has already been thought out and tested, all that remains is to implement it.