A Once in a Lifetime Opportunity:
Construction Project: Apartment Building in Punta Gorda!
The top location of Montevideo's top locations!
Constructing in Uruguay - Actually as Profitable as Almost Never Before
The construction business in Uruguay is actually very profitable and flourishing, especially of course in areas with a high demand. There is a notorious lack of high quality apartments, being one reason for this the growing number of Argentinians, who acquire a second or holiday domicile in Uruguay. Another one is the raising number of immigrants from Europe and Northamerica.
Construction costs for high quality housing are approx. 1.000 USD per square meter. The sales prices in exclusive areas of Montevideos (like Punta Gorda) oscillate between 2.000 and 3.000 USD per square meter - an easy equation! With a building of, let's say, 2.000 square meters you can make between two and four million Dollars! The construction costs itself can widely or completely be financed by a bank loan (approx. 8% interests annually). The construction time for a building of these dimensions is approx. two years. The only thing you have to purchase is the construction plot, which you can get for half a million Dollars.
With an input of half a million you can make a secure profit of at least two millions. Do you know a better business idea with practically no risk?
The above mentioned example outlines pretty well our concrete investment project in Punta Gorda (see below). If you don't take it, somebody will...
The Peninsula of Punta Gorda – Montevideo's Top Location
Besides Carrasco (the neighbour quarter), Pocitos and Punta Carretas, Punta Gorda belongs to the most desired residential areas of the uruguayan capital. But the top location of all top locations is Punta Gorda's peninsula, which gave the name to the whole quarter (“Punta Gorda” means “Fat Cape”). Why? Here you do not only have a wonderful sea view and fantastic sunsests or sunrises (depending on the location), which you also can have on the Rambla of Pocitos or Punta Carretas. Here you do not only have the good transport connections and nearby shopping opportunities, restaurants etc., which also do exist elsewhere. Here you have additionally to the before mentioned advantages a divine calmness, because the main road with the through traffic is beyond earshot.
The here offered project is located on the best spot of the peninsula, on it's very peak. It's Montevideo's top location par excellence.
Facts and Numbers
- Location: On the peak of the peninsula of Punta Gorda, slightly to the right
- Cadastral reg. number: 95.419 (10° Secc. Judicial, Montevideo)
- Total surface: 1.176 m²
- Minimum distances to keep:
- 7 mts. to the street Calle Mar Artico
- 5 mts. to Rambla República de Mexico
- 4 mts. to Plaza de la Armada
- 3 mts. to the other neighbour property
- Allowed height above Calle Mar Artico: 3 mts. Together with what can be constructed downward towards the Rambla (coast road), the total allowed hight is 10 mts.
- Price: 550.000 USD (to be reconfirmed). The sellers are a community of heirs that hardly manages to agree on anything. The only option they have is to sell.
- Side costs: Approx 9% of the sales price (realtor's commission, notary's fees, taxes and expenses) = approx. 49.500 USD
- So your total investment, which you have to finance by yourself, is approx. 600.000 USD.
- Allowed living space: 2.000 m² ...or more. 2.000 m² is the minimum
- Construction costs per square meter: approx. 1.000 USD
- Total of construction costs (with 2.000 m²): approx. 2.000.000 USD
- Bank financing is possible with favourable conditions (approx. 8% interests per year)
- Construction time: approx. 24 months
- Sales price per square meter in this top location: 2.500 – 3.000 USD. The sales can start before the building is finished. This way you get your money quicker and can safe bank interests.
2 Million Dollars Profits
- Minimum earnings: 2.000 m² x 1.500 USD = 3.000.000 USD
- Profits: After resting the expenses for property purchase, purchase side costs, bank interests and arquitect's fees (10% of the construction costs) you still have almost two million USD as profits:
3.000.000 (minimum earnings from the apartment sales)
- 550.000 (property purchase)
- 49.500 (purchase side costs)
- 320.000 (max. bank interests)
- 200.000 (arquitect's fees)
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1.880.500 (remaining minimum profits)
Project Handling and Supervision
We can take care of everything till the turnkey handover (construction permits, bank financing, construction and supervision). We would give you a success guarantee.
Our fees for this are 5% of the total investment, which sums up to 2.8 million USD:
550.000 (property purchase)
49.500 (purchase side costs)
2.000.000 (construction costs)
200.000 (arquitect's fees)
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2.799.500 (total investment)
5% of this are 139.975 USD.
Sale of the Apartments
We also can commercialize the apartments for you under the usual conditions: 3% realtor's commission, nothing else. (In Uruguay both buyer and seller have to pay a realtor's commission by law.)
Quick Decision Required
A property like this will not last long on the market. If you want to make this business, you have to be quick. This is not a realtor's trick, but just reality.
Proceedings in Case of a Purchase
The proceedings to acquire a property in Uruguay are like in most other countries. First the involved parties sign a pre-sales contract ("boleto de reserva"), which estipulates mutual obligations and the exact conditions, like the sales price, the form of payment, the amount of the initial deposit, commissions, the modalities of the handover of the property and penalties in the case of non-fulfilment. (If desired, we can send you a sample contract.) Already this pre-sales contract makes you to the legal owner of the property, if you accomplish your obligations.
Thereafter the notary verifies whether the property is free of debts, mortgages and other obligations and whether there are third party rights registered on the property (e.g. a right of way). After this check and the fulfilment of the agreed conditions, including the payment, the final sales contract is signed ("contrato de compraventa") and the new owner will be inscribed in the cadastral register. Private property of all kind is very well protected in Uruguay by laws, the constitution and the political and social reality.
If you cannot be present in person, a person of your confidence can sign the contracts for you. No notarized power is required for this. (Only in the case of sales.) So if you can't travel in the next future, we could do this for you.
A Once in a Lifetime Opportunity
Opportunities like this do not come back. Real estates prices in Uruguay are raising. Properties like this can be counted with only one hand, anyway. The location is the best Montevideo has to offer. This opportunity is unique in every sense of the word.
Now it's your turn.
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