Increase the selling price of the apartments. Invest no more than 5% in renovation and achieve a 30% increase in the selling price of the unit.
The investment method involves purchasing residential real estate below its market value, followed by resale after quality renovation and designer transformations.
Flipping always involves quick sales, where the buyer immediately sees that the property fully meets their expectations. This implies that the property must be presented in perfect condition from the moment of viewing. Extensive repairs reduce the profitability of the investment project.
Let's analyze the potential profit from renovating a secondary real estate property valued at 960,000 dirhams:
- Property tax for properties valued over 500,000 dirhams is 4%, totaling 38,400 dirhams in this case.
- Agency commission 2%: 19,200 dirhams.
Considering the stages required for renovating a secondary real estate property to maximize profit, it usually requires investing between 10% to 15% of the total amount.
In this example, let's consider minimal renovation costs, amounting to 15% of the investment: up to 144,000 dirhams (excluding service fees).
As a result, the total investment cost reaches 1,161,600 dirhams.
Upon selling the property for 1,510,080 dirhams and paying the agency commission of 30,201.6 dirhams, we achieve a profit of 318,278.4 dirhams, representing 27.4% of the total investment amount.
Strategic design that enhances apartment profitability:
— Where aesthetics meets investment attractiveness
— Establishes the value and practicality of solutions for maximizing returns
— Optimizes investment costs
Completion time is approximately one month.