In today’s post, we will carry out an analysis of how much you could profit by investing in the Housers opportunities: El Raval and Palma 12. The simulation has been carried out only for the first year. For the simulation we have proposed three scenarios with three different investment amounts: 1,000 €, 3,000 € and 10,000 €.
We have calculated the generation of dividends and value increase during the first year. In case of the El Raval project, this means the first year after finalizing the renovation.
El Raval consists of the investment in two properties for renovation – rent and sale in the heart of Barcelona. Its location is one of the great advantages of this investment. This part of Barcelona is currently filled with students, artists, art galleries, bookstores, restaurants etc.
The estimated time to reach the sales target price is 60 months, but this does not mean that it can’t be achieved earlier.
The second project as part of this analysis, Palma 12, is a commercial property in the center of Madrid. Since day one, the project starts generating revenue from rental. The following table is showing the rental return only by investing in each of the opportunities:
As you can see, both opportunities offer fairly similar dividends, the fundamental difference between the two is bank financing that causes less monthly dividend in exchange for a higher gain at the time of sale. We recommend you read this article to delve deeper into this topic.
The table above is indicating a simulation of the potential gains from the value appreciation of each opportunity during the set project duration.
As a result of Palma 12 being financed by a bank, the return is higher due to the effect of financial leverage.
This table is a simulation of data that shows the result of adding the obtained net dividend by the rent for the first year and by the value appreciation of the shown properties.
In short, two major investment opportunities that you should not miss.