Realtor Barsukov explained what factors influence the payback of repairs when selling an apartment

Firstly, as Konstantin Barsukov, a member of the Russian Guild of Realtors, noted, the general rule is that repairs usually do not pay off. However, there are people who buy an apartment, renovate it and sell it for a profit, writes ridus.ru.

In the case of selling an apartment in the mass segment, which was previously well renovated, but other people lived in it for some time, the sellers want to sell it at an inflated price in order to recoup the cost of repairs. However, according to Barsukov, this will not work.

The situation is completely different when a person considers the purchase of an apartment, renovation and subsequent sale as a business. Three factors are important here: the location of the property, the condition of the property and the approach to repair itself. For example, if you make premium renovations in a one-room apartment for 10 million rubles for 15 million, it will not pay off. The same thing happens if you make repairs in an elite residential complex for 50 million rubles for 5 million.

Another example: if the apartment requires minor repairs, for example, wallpapering, but at the same time all materials are completely replaced, etc., then this can be beneficial. However, you also need to take into account the location, cost of materials and labor.

Regarding earnings from the purchase, renovation and sale of an apartment, it depends on the project financing scheme chosen by the entrepreneur. The realtor gave an example: you can invest 10 million and get 20% profit, that is, two million. Or you can take out a loan for 8 million, invest only two million and get a profit of one and a half million. Thus, the profit on the investment of two million, taking into account the interest rate, will be 75%. Therefore, when investing, you need to carefully approach financing.