How I shop for real state in downtown Dakar

business English

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Case study: Apartment

Appartment

  • 30-30-3 rule
    • 30% gross monthly income should cover home monthly expenses (insurance, mortgage, bills)
    • home should not be more than 3 x yearly income
  • budget 100M, maxed at 120M
  • F4+
  • zone: 10km de la zone foire Promesse de vente notarié (document émis par le notaire)

Prévoir budget pour réfection

  • peinture
  • fissure
  • équipement moderne
  • travaux de réaménagement
  • peut être un prêt séparé afin de réduire l’intérêt à payer sur le plus gros prêt

Prévoir frais notaire 10-13%

  • mutation

  • échange avec la banque

  • Prévoir TVA 18%

  • Refection bâtiments

  • Estimation travaux

  • Peinture

  • Equipement

  • Travaux de réaménagement

  • Plan de mur

  • Embellissement de faux plafond

  • Toilette à décaper

  • Viser 10M

  • Devis entrepreneur

  • Frais de notaire à payer moi-même

  • Frais de dossier 1% du prêt

  • Frais assurance déjà inclus dans échelonnement

Case study with a 5 stories property

5 stories on 150 m2 which makes a total of 750 m2. About 334k per m2

Finances breakdown

  • asking price 250M
  • add +18% sales taxes
  • Frais de notaire 10%
  • Miscellanious 10%
  • Ideal payment to the bank should be 1/3 so 900k monthly
  • 10% interest over 30 years is 35% total interest so you will pay 338M instead of 250M. 88M in total interest
  • 939k (338M / (30 * 12))monthly will pay the bank
  • 1.7M à gerer les charges fixes et benefice par mois
  • Charge fixe 10%: So 270k max par mois pour maintenance entretient
  • how do you feel about this deal after the breakdown ?

To get this started you will need to have the following in cash

  • Down payment 20% of 250M
  • Notary service fee 10%
  • closing fees 1%
  • sales taxes 18% - can be delayed but
  • about 49%

Checklist

  • Price per square meter is within range for area
  • place is really rented out
  • estimated fixed cost is within range

Next steps

  • Other than enjoying our 1.3M per month for the next 29 years which is a total of 37.7M, you can also benefit from the appreciation of the property.
  • Real state double price every 10 years on average so after 30 years, your fully paid off property is now worth 750M
  • Property can be used as guarantee or down payment for a bigger loan and you don't need to wait for the property itself to be paid off
Babacar Cissé DIA
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A Solutions Architect and Developer who thrives on crafting digital solutions. Passionate about learning and innovation, he sees challenges as opportunities to build secure, responsive, high-quality applications that drive business growth through cutting-edge technology. His blog serves as a tech memoir, documenting his coding journey and sharing insights into software architecture. It’s a blend of lessons, musings, and tech expertise, providing a glimpse into the art of crafting solutions in an ever-evolving digital landscape.