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Case study: Apartment
Appartment
- 30-30-3 rule
- 30% gross monthly income should cover home monthly expenses (insurance, mortgage, bills)
- home should not be more than 3 x yearly income
- budget 100M, maxed at 120M
- F4+
- zone: 10km de la zone foire Promesse de vente notarié (document émis par le notaire)
Prévoir budget pour réfection
- peinture
- fissure
- équipement moderne
- travaux de réaménagement
- peut être un prêt séparé afin de réduire l’intérêt à payer sur le plus gros prêt
Prévoir frais notaire 10-13%
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mutation
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échange avec la banque
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Prévoir TVA 18%
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Refection bâtiments
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Estimation travaux
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Peinture
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Equipement
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Travaux de réaménagement
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Plan de mur
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Embellissement de faux plafond
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Toilette à décaper
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Viser 10M
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Devis entrepreneur
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Frais de notaire à payer moi-même
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Frais de dossier 1% du prêt
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Frais assurance déjà inclus dans échelonnement
Case study with a 5 stories property
5 stories on 150 m2 which makes a total of 750 m2. About 334k per m2
Finances breakdown
- asking price 250M
- add +18% sales taxes
- Frais de notaire 10%
- Miscellanious 10%
- Ideal payment to the bank should be 1/3 so 900k monthly
- 10% interest over 30 years is 35% total interest so you will pay 338M instead of 250M. 88M in total interest
- 939k (338M / (30 * 12))monthly will pay the bank
- 1.7M à gerer les charges fixes et benefice par mois
- Charge fixe 10%: So 270k max par mois pour maintenance entretient
- how do you feel about this deal after the breakdown ?
To get this started you will need to have the following in cash
- Down payment 20% of 250M
- Notary service fee 10%
- closing fees 1%
- sales taxes 18% - can be delayed but
- about 49%
Checklist
- Price per square meter is within range for area
- place is really rented out
- estimated fixed cost is within range
Next steps
- Other than enjoying our 1.3M per month for the next 29 years which is a total of 37.7M, you can also benefit from the appreciation of the property.
- Real state double price every 10 years on average so after 30 years, your fully paid off property is now worth 750M
- Property can be used as guarantee or down payment for a bigger loan and you don't need to wait for the property itself to be paid off