Latvia
City of Riga
Fitness club, income 7.7% per annum
A new three-storey building in one of the residential areas of Riga, leased for a long-term fitness club.
Land area: 2989m2
Building area 1310m2:
ground floor - gym, men's changing rooms, showers, sauna, massage and treatment rooms, phytobar;
second floor - two fitness rooms, solarium, women's changing rooms, showers, sauna, administrative offices, massage and treatment rooms;
ground floor - technical and storage rooms.
It is possible to increase the possibilities of the fitness club by re-equipping the basement.
Around the building there is a large parking lot for club clients and additional parking for tenants.
The fitness club has been operating in this building for 7 years:
furniture, equipment, staff, customer base of 800 people.
There is additional income from bike rental and parking.
Rental income of the building owner:
5416€/month +VAT (paid by the tenant) × 12 months = 64,992€/year + VAT (paid by the tenant)
Utility bills are paid by the tenant
Expenses: land and building tax (paid by the owner once a year) 719€ +2227€= 2946€
Total net rental income (before income tax):
64992€ -2946€ = 62046€
Profitability: 7.7% per annum
Residence permit for the investor and his family members
Price: 800,000€
