To make you understand what exactly a property investment I want to tell a 'long-term operation of success we have made in 2015 a Milano.
I'll show you how we have selected and vested a immobile with high potential of profit, how we enhanced to make it attractive on the market and how we managed to get an investor gain of over the 6%.
So you can know more about the different phases of an investment and, also thanks to photographic material you explain, you will see for yourself what are the steps to take to investing well.
Here is the real estate investment story Milano Monochic, phase to phase.
Phase 1 – Property Search and Acquisition
L’target start was acquire a immobile e revalue to propose it as a long-term investment, so do gain to an investor and then creating some income to have you get a gain from the rent.
For our operation we aim now at a Milan area we know very well for his high marketability in terms of rentals: Porta Romana.
So we go looking for a still perfect you can acquire at a good price and can be restored to increase its value and put it on the market.
Porta Romana is our 'excellent location because it has a high commercial value, a good quality of life and a set of useful services to citizens. Furthermore, is situated near the Bocconi University and then in a large very profitable area of Milan.
A property located in an area like this also more likely of to increase in value over time: They are places away from real devaluation, in which to make an investment can still be highly profitable.
After visiting several properties we select one within context stately, with concierge service.
The property is 160 square meters, structured to office use, in raw state, not finished, without plaster and masonry without coating.
A property so great They must not mislead trarti: could be a choice very wrong risky unless you know how to turn it into a profitable investment.
We wanted to consider the possibility of buying it working out potential strategic actions for profit. Here is the elaborate operation before the acquisition:
- buy Compromise sale;
- do the change of use for residential purposes;
- implement the fractionation houses three properties;
- restructure to revalue;
- Planning of the sale in order to take advantage of fiscal detraction;
- and sell it at a good price.
We thought the fractionation because in the area there was a 'high demand of real estate units small cut but they were almost impossible to find. The operation worked, then, even because we managed a answer to a market demand that at a given time was not satisfied.
After a thorough and accurate analysis performed by real estate consultant (I), together with quantity surveyor and to legal counsel (i three indispensable experts to make real estate transactions), with appropriate assessments on state of conservation, the regularity, the issues, i costs and restructuring, acquire property.
Since splitting we get three apartments: a studio flat of 35 sq.m., a two-room of 45 sq.m. and a trilocale of 80 sq.m.. For the operation that you want to tell concentrate on studio 35 square meters.
Here are some photos of the property acquired.
Phase 2 – Design and Renovation
Let's start the transformation the studio, entrusting us to one of our companies trust and advice from all the experts we work with every day in close contact on property transactions. It is in fact of extreme importance to be able supervision of construction sites and make sure that there are no unforeseen.
Buy a old estate It can be a good move because it allows you to buy a "discounted" price of increase the value with restructuring, but you must be able to distinguish a good property potentially be revalued.
We proceed with all interventions that allow us to achieve the most important goal: create a quality product that is valid and enjoyable for potential tenants.
First we modify the Private Property to make it more functional.
We expand the useful surface breaking down the wall bordering the ladder.
This allows us to realize the bathroom without taking away from the kitchen-living room and to enhance the external space by replacing the old with a ramp elegant circular staircase.
One of our strategies It is to design property as a function of the furnishings we expect to place: in this way we get a remarkable space gain (key factor in such small spaces) which can even reach 20%!
A another intervention which usually provides a significant and immediate improvement in small environments is the realization of a countertop.
In addition to the bell 'visual impact, the ceiling allows the use of a double lighting system (spotlights for direct light and led to the soft light) and integrates the plant conditioning, with additional savings of fundamental space in a studio.
We mount then the plates new and a new radiator, to which we pair a tailored coverage adapted to the new style we have chosen to give the apartment.
For the flooring we use the parquet over the entire floor area, except for services.
A Mobile bespoke next to the bathroom allows us to place the washing machine and have room for a table top. For bathroom, besides the obvious choice of a shower, assemble the sanitary suspended that increase the perception of the space available.
As decoration we choose a single color for all housing: the white and natural colors, combined so as to create harmony between the walls and the coverings. Our choice of color also serves to visually increase the perception of amplitude, increase brightness and give a modern twist.
In real estate operations must always bet on colors that work better and finishes that can adapt a most of the people. This choice requires a lot of attention because you can not know the tastes of the prospective tenant.
We decide to take color solutions which allow those who live in the property to be able to later customize according to your preferences.
We replace exterior doors and install the new windows with double glasses and of electric shutters. The apartment's security is also guaranteed by a security door and a alarm system.
The renovation of this property we focused on a radical restoration to create a high added value, being careful to get the best possible result ensuring that the budget for the work does not suffer any increase.
Phase 3 – Accommodation and Mass Income
Then we proceed with the 'furnishings, trying to create an environment pleasing to the eye for those who will see it.
All the studio flat is concentrated in living room, to furnish a large sofa bed and furnishings suitable both as a living area and sleeping area as.
The sofa bed, Furthermore, It is positioned so as to create a visual separation between the input and the rest of the house.
The kitchen is to view, but remains well separated from the living thanks to the arrangement of the furniture and the ceiling where it is ideally enclosed.
We also get one space dedicated to lunch, setting the table in the more intimate of stay, near the kitchen to promote the consumption of meals but at the same time and detached from the kitchenette from the living area to be used as a small corner studio.
He was born the Milano Monochic.
Once the decoration work is finished we give finishing touch with kits capable of making the property more attractive aesthetically and more cozy. Even though this last step is very important and must be treated in detail.
We fit the Milan Monochic a bit 'as if it were a store window, placing the right accessories in the strategic areas, playing on pairings e i color contrasts: I'm "Tricks" of the trade they do also leverage on 'emotional aspect of those who will see it, and that only those who have a lot of experience can achieve.
The total white the entire apartment is now attenuated dai gray tones Some furniture, as well as a pleasant contrast to the parquet and with the colors of the kits.
Each step of the previous phases was done well and this has allowed us to not bring out any unpleasant surprises during construction.
Let's get the residual material from the building of the restructuring and redesign work and do clean housing from top to bottom. After cleaning, we ensure that both all in order and require a Professional photoshoot.
The final results is what you see in photos.
At this point the property is soon to be proposed investor that can acquire and put it immediately in income. In this case, the investor acquires the property for 170.000 euro ed in just 10 days we can find him a tenant.
The negotiations for the lease Milano Monochic is concluded at a price of 820 € per month (that is an income of 8.740 € per year net of service charges).
Let's reasoning to understand how the operation was successful.
The purchase price It was the property of 170.000 €.
The property has been made income for a price of 8.740 € all’anno, so 8740×100/170.000 = 5,14%.
The restructuring had cost 50.000 €, so thanks to the tax deduction of 50% provided for by Italian law, the investor will enjoy a ten-year tax deduction of well 25.000 €.
Whereas for the first 10 years you will use this tax deduction, personal income tax on income, to break down the dry coupon (20%), and thus do not bear the cost, the revenue It will be about 6,17%.
The time total of realization Milan Monochic investment was 9 months.
I decided to tell This case history to show you that the way it is handled a real estate transaction can make a difference: because designed and manufactured with extreme care, Strategy and skill, investment Milano Monochic allowed maximize the gain and at the same time minimize risks.
If this success story has stimulated your curiosity look the real estate transactions available in Milan, or contact us to know and deepen our investment proposals.
