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Q: Profit Calculation ( No Answer,   1 Comment )
Question  
Subject: Profit Calculation
Category: Business and Money
Asked by: topdost1-ga
List Price: $20.00
Posted: 07 Oct 2006 13:47 PDT
Expires: 08 Oct 2006 14:24 PDT
Question ID: 771576
I am buying a Post Offic in london U.K , its corner property fairly
samll , Post office pays 45000pounds as salary and there is a
potential for settinga shop with it but the space is quite limited .

The building is costing me 333,000 pounds , witha flat included 2
bedroom generating a rent of about 800 pounds a month .

After paying for everything except finance I will be left with about
20,000 from post office and from flat about 10,000 per anum

Finance cost as 860 for post office and 550 for flat  total  1410 .i.e
business is 100 percent financed . The Post office is almost self
generating the 20000 included the salary of one person .

Seem like about 10000 per year with only a bit of attention.

My question is 

1 Is it worth to do all this? As I have got 200000 from my house and
it is on my disposal where to invest .Rest is againt the post office .

2 What will be good money item to put in Post office in the store side
to make quick and good money .Post office in a very resedential area.

Clarification of Question by topdost1-ga on 08 Oct 2006 14:23 PDT
Thanks ...........
Answer  
There is no answer at this time.

Comments  
Subject: Re: Profit Calculation
From: myoarin-ga on 08 Oct 2006 09:34 PDT
 
Topdost1-ga,
This is a free comment, not an official answer to your question.

Do I understand correctly that the Post Office would pay you 45,000 a
year to run the post office, and that you would be paying an employee
to handle the work for 20,000, and are assuming that the income from
operating the post office would cover this person's salary?

If this is so, there are some factors that should be considered:
1)  The Post Office's long term commitment to maintain "your" post
office, a matter of the fine print in the contract, something a
solicitor should look at.
Keep in mind that email is becoming more and more common, competition
for post offices  - possible reduction in revenue and traffic to a
shop; the possibility that the office could be closed at a later date.
2)  Staff: punctuality, trustworthiness, control, future salary level, etc., etc.

I don't mean to discourage you; real estate has been a good investment
and may remain so, but analysing the project requires more than just a
calculation of the numbers.

Good luck, Myoarin

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