Point Zero Studio · Interactive

Is a resilient upgrade worth the money for the years you own the building?

One example building, as it is today and with a resilient upgrade. Insurance is rising fast because the building is not resilient; the upgrade is a one-time cost that cuts the bill, can earn more rent and can raise the sale price. Drag the sliders.

Operating profit each year
Without upgradeWith upgradeYearly loan payment

Rent minus running costs, insurance included. In finance this is net operating income.

Illustrative example: $1.0M rent in year 1, running costs at half of rent, $20,500 insurance in year 1, one loan for both cases, 8% target return. Not investment advice.
Sources for the guides