The investment opportunity is for buying of a 13000m2 property land located on Aruba in a area where a residence project of 35 houses can be developed. The process after buying the property which has all permits for construction and development is as follow:
Planning of the locations of all the residences in different lots of average size of 300m2 on which a house will be build with an average area of 120m2 up to 140m2.
Hereafter the property land will be cleaned and all lots will be outlined and all necessary work for water and electricity connection will be done.
During the process of preparation works the property can be exposed to prospect and interested client who can start buying their lots and as well making arrangements for construction of their house.
The selling of the property can go in to ways where the client has the option to only buy the lot and construction will be on its own, but where it has to maintain its house to a certain designs and comply with building and finishing request of the project company.
Second option is where the client can buy the lot and has its house, constructed by the project company. The construction of the house will included a designed plan with it specific material and average price of material of finishing product used here for where the client agrees. As well the client has the option to upgrade on materials and finishing product and detailed interior finish of which will increase the price of which is suitable for the client.
Option 1 will create an opportunity to sell a lot on a higher rate compared to the price of the lot included in the package of buying a lot with the construction of the house.
Average price per lot will be $ USD 95.00 per m2. Average total area of lot that can be sold 11,000m2.
Average standard price per lot with construction of residence will be $ USD 975.00 per m2 of construction. Average total area that can be sold and constructed including the lot 4200 m2.
Estimated project process from beginning till end of construction or re-sell of lots can be 3 to 4 years.
Buying the property through Notary involving all legal costs.
Drawing designs and planning of property area and residences for all necessary permits.
Cleaning of the property
Planning and execution of the division of the lots and make them available.
Planning and execution of access road, water and electricity installment for all lots.
Pre sale of lots with the option to build the house for the client (Price includes land and house)
Starting of construction of houses on lots bought by first clients.
Property land value with all necessary costs involve for development US$ 550,000.00
Total area 13000m2
Forecasted re sale of lots US$95.00 per m2
Forecasted re sale of lots including house construction US$ 975.00 per m2
Average total of houses to be constructed 4200m2
Gross Construction Costs