Flat in Bar, Montenegro, 49 sq.m

One bedroom apartment in a new building on the first line from the sea in the Ilino area, Bar.

Apartment area 49m2.

Structure: entrance hall, kitchen, living room, bedroom, bathroom and terrace.

Communications: electricity, city water, city sewerage.

The house has 7 floors.

The apartment is on the 2nd floor.

Gorgeous sea view.

Distance to the sea 100m.

Within walking distance of a supermarket, school, bus stop.

Cafes, restaurants 100m away.

The entire developed infrastructure of Bar is 500m away.

Ideal for year-round living.

Also, the apartment has excellent seasonal and year-round rental potential.

Calculations are provided taking into account the purchase of an apartment for 125,000 euros + 5,000 euros (purchase of furniture). Total initial investment - 130,000 euros. Calculations are given for daily rentals with a flexible pricing system and accounting for prices in high season and off-season. Rental price data was provided by our real estate agency for a similar property in an identical location, which is under our management and rented out by our company.

Income:

1. From May 1 to June 15 (15 days) = 50 euros/day * 15 days = 750 euros
2. From June 15 to September 1 (78 days) = 80 euros/day * 78 days = 6,240 euros
3. From September 1 to October 1 (30 days) = 60 euros/day * 30 days = 1,800 euros
4. From October 1 to December 25 (85 days) = 45 euros/day * 85 days = 3.825 euros
5. From December 25 to January 15 (21 days) = 50 euros/day * 21 days = 1,050 euros
6. From January 15 to May 1 (106 days) = 40 euros/day * 106 days = 4,240 euros

Total income for the year: 750 + 6,240 + 1,800 + 3,825 + 1,050 + 4,240 = 17,905 euros

Expenses:

1. Advertising: 15% of 17,905 euros = 2,685.75 euros
2. Annual tax: 500 euros
3. Property turnover tax: 3% of 130,000 euros = 3,900 euros (one-time, not annually)

Total expenses for the year: 2,685.75 + 500 = 3,185.75 euros (not including property turnover tax)

Calculations of indicators of financial efficiency of investment in an apartment:

1. Gross profit for the year: 17,905 euros (income) - 3,185.75 euros (expenses) = 14,719.25 euros
2. Marginal profit: 17,905 euros (revenue) - 2,685.75 euros (advertising) = 15,219.25 euros
3. Capital turnover ratio: 17,905 euros (annual income) / 130,000 euros (cost of apartment) = 0.1377 (or 13.77%)
4. Return on Investment (ROI): 14,719.25 euros (net profit) / 130,000 euros (initial investment) = 0.1132 (or 11.32%)
5. Percentage of total expenses to total income: 3,185.75 euros (total expenses) / 17,905 euros (total income) = 0.1779 (or 17.79%)

These metrics give you an idea of how your investment is performing for you and what potential it has for future income.