Registry number: 5-0666472/001
Apartment as a ready-made business in a complex on the first line to the sea!
Income:
1. Daily rent during the season: 70 euros * 90 days = 6,300 euros
2. Off-season rent: 400 euros * 8 months = 3,200 euros
Total income for the year: €6,300 + €3,200 = €9,500
Expenses:
1. Advertising (season only): 15% of €6,300 = €945
2. Apartment maintenance: 210 euros
3. Annual tax: 400 euros
Total expenses for the year: 945 euros + 210 euros + 400 euros = 1,555 euros
Calculations of the financial performance indicators of apartment investments:
1. Net profit for the year: €9,500 (income) - €1,555 (expenses) = €7,945
2. Contribution Margin: Rental Income (excluding fixed costs such as taxes) - Advertising Costs = €9,500 - €945 = €8,555
3. Capital turnover ratio: 9,500 euros (annual income) / 95,000 euros (apartment price) = 0.1 (or 10%)
4. Return on Investment (ROI): €7,945 (net profit) / €95,000 (initial investment) = 0.0836 (or 8.36%)
5. Percentage of total expenses to total income: 1,555 EUR (total expenses) / 9,500 EUR (total income) = 0.1637 (or 16.37%)
These metrics give you an idea of how your investment is performing for you and what potential it has for future income.