19.12.2021
$107000
Investment in home renovation for further sale
1120
We invite investors to consider investing in the renovation of already built houses. A plot with a built house is registered for the investor. Investment period 6 months, yield 22% per annum
Project summary
We invite investors to consider investing in the renovation of already built houses.
It is our deliberate choice to come out with this offer to investors in the winter. It is profitable to make repairs in winter, since the rise in prices for materials stops, prices for the work of repair teams fall during this period. The repairs will be completed just in time for the start of active spring demand for houses.
Market analysis shows that there is an oversaturation of the supply of built houses, while there are few offers of houses with ready-made repairs. Clients regularly ask about when they can call in, for what period we are ready to make repairs.
80% of our company's clients are people who sell their apartments in Kiev and move out of town. For them, the presence of repairs in the house is a serious advantage. To move, it will be enough for them to move furniture from the old apartment.
All houses are located in Belogorodka, in its central part. Each of the houses has a large living room with access to a large terrace, a parking space for 2 cars, 3 bedrooms, 2 bathrooms. A distinctive feature of these houses is the presence of a terrace (absent from local competitors). The houses are equipped with their own boiler room. The technology of pouring the foundation, which is expensive and unique for the segment of such houses, is used, heating is installed in the form of a warm floor throughout the entire area of the house. Also, each house has its own water supply (well) and septic tanks. The attic floor expands the area of the house, and can be used to equip a nursery or an office.
Technical characteristics of built houses:
• Land area - from 5 to 9 ares.
• House area - 110 m2 and 127 m2.
• Ceiling height - 3.2 meters.
• The foundation is a Swedish plate.
• Wall material - AEROC D300.
• Wall thickness - 420 mm external walls
• 200/100 mm internal partitions.
• Insulation of walls - mineral wool / polystyrene 100 mm.
• The roof is hipped.
• Roof - metal tiles 0.5 mm.
• Roof insulation - mineral wool - 200 mm.
• Windows WDS 5s 70mm (fittings WINKHAUS).
• Heating and water supply pipes - XLPE from Rehau.
• Well with a deep pump - 50 meters.
• Sewerage - septic tank with double overflow 8 m3.
• Heating - from an electric boiler.
• Electricity - base power 10 kW.
• The entrance to the house is asphalted.
The cost of repairs includes the following types of work: electrical and fittings, wall painting, suspended ceilings, plaster, plumbing, putty, self-leveling floors.
The conditions for investors are as follows:
1. The minimum amount to enter is an investment in the purchase of a house and subsequent renovation work. $ 107,000 in the case of an investment in the renovation of a 110 square meter house and $ 125,000 in the case of an investment in the renovation of a 127 square meter house;
2. Securing investment - a land plot with a finished house built on its territory without repair;
3. Investment strings - 6 months;
4. Fixed profitability - 22% per annum (11% for 6 months);
5. Possible yield - 22-40% per annum (with early sale of the house);
6. Risks - delays in the sale;
7. Resolving the issue of risks - starting from the 7th month, 2% of the investor's fixed income for each month of delays, up to 12 months, with the further buyout of the pool by HIGHLAND in the absence of the sale of houses;
8. Advantages - extensive experience in working with investors, your own sales and marketing department, active sales through partners.
An example of calculating investor mathematics:
Cottage 110 m2 on 5 ares
Investment volume $ 107,000, of which
$ 77,000 box;
$ 30,000 repair.
Cost after renovation $ 119,000 +
Project start 10.01.22
Leaving the project 06/01/22
The profitability of the investor in case of sale for the sixth month (spelled out in the contract) $ 12,000 or 11% for the period