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DREAM HOMES INC.W H AT I S Y O U R D R E A M H O M E ?
Teemu Toivanen Comm447
Dream Homes Inc. - What is your dream home?
Dream Homes Inc. - What is your dream home?
OPERATIONS
Finding custome
r
Finding apartme
nt
Planning &
Designing
Renovation
Furnishing
Dream Homes Inc. - What is your dream home?
HELSINKI, FINLAND
Dream Homes Inc. - What is your dream home?
Capital of Finland
Old apartment buildings –
no room for new buildings
High demand - high price
5000-6000€/m2
HELSINKI
Dream Homes Inc. - What is your dream home?
Target group 25-35 year old
couples
Market research
Exhibitions
Website
Social media
Price is competetive – all
inclusive
MARKETING
Dream Homes Inc. - What is your dream home?
Revenue ModelSalaries 2012 2013 2014 2015 2016Manager (full time) 1 1 1 1 1Other Staff 1,00 1,60 2,00 3,00 4,00Total Salaries and Wages 99 000 130 000 157 000 215 000 277 000Number of ApartmentsNumber of Apartments Renovated & Sold 3 5 6 9 12Number of Renovated 2 3 4 6 8Number of Purchased & Rented 0 0 0 2 2Total Number of Renovations 5 8 10 17 22Gross ProfitsRenovated Apartment Sell Price 250 000 250 000 255 000 260 000 260 000Purchase Cost/Apartment 200 000 200 000 200 000 200 000 200 000Renovation Cost/Apartment 21 000 21 000 21 000 22 000 20 000Total Gross Profit/Apartment 29 000 29 000 34 000 38 000 40 000
15 % 15 % 17 % 19 % 20 %Price of Renovation Only 30 000 30 000 35 000 40 000 40 000Renovation Cost/Apartment 21 000 21 000 21 000 22 000 20 000Total Gross Profit Per Renovation 9000 9000 14000 18000 20000
30 % 30 % 40 % 45 % 50 %
Payback, NPV & IRR
Payback Gross 1 055 000
Payback Net 765 000
NPV 243 000
IRR 30 %
Dream Homes Inc. - What is your dream home?
Dream Homes Inc. - What is your dream home?
Cost of apartment & selling
price• Finding suitable
apartments
Cost of renovation• Networking and building
relationships
Turnover of an apartment• Marketing
CRITICAL VARIABLES
Dream Homes Inc. - What is your dream home?
No direct competitors
Non-direct: real estate agencies &
renovation and construction
companies
Advantage to be a turnkey service
company
COMPETITORS
Dream Homes Inc. - What is your dream home?
High quality, good service, unique
experience
Investing in real estate fairly safe
World economy unstable
CONCLUSION
?
Dream Homes Inc. - What is your dream home?