Multi-Apartment Buildings' Renovation Is Good for Scandinavian Banks: Calculated whether renovation of multi-apartment buildings is good for you - if you are sensitive, it is better not to read this text

“How are your brain hemispheres? Are they working? Both? Really? Well, smart moles, let's calculate.

 

This is what economist and investor Mindaugas Busila writes about on his Facebook account.

 

Such situations are a great lesson in investments for ordinary people.

 

The respected economist gives an example:

 

25,000 euros investment in renovation,

 

the “savings” calculated by the agency - 360 euros per year,

 

Payback - 70 years

 

In other words - the investment would not pay off financially during our lifetime.

 

But what shocked us the most was not the numbers, but the calculation error. Did you notice it?

 

Of such a scale that in 70 years it could reach even 100,000 euros.

 

Can you imagine - with 25 thousand EUR to calculate in hundred thousand? Ajajaj.

 

This is how our state economists “calculate” the payback:

 

someone calculated that the benefit is 360 euros per year, the investment is 25,000 euros,

 

divided – got 70 years.

 

You don’t even need to open “Excel”. Here’s the methodology. They say, you need to offer everyone such a good “file”.

 

Forced.

 

And this is not the first time. But to make mistakes is human. It’s a shame not to learn from mistakes.

 

When the same economist previously assessed small business taxes, he equated income with profit, and forgot about costs.

 

Now the same logic – only with renovation.

 

Such thinking – straight to the bankruptcy of the state.

 

And to the bankruptcy of your renovation. And to the bankruptcy of small business.

 

Of course, it can be understood – the person probably neither carried out individual activities nor renovated his apartment. But this is a second chance to correct the mistake.

Where is the dog in this case:

 

someone who invests 25,000 euros usually takes out a loan.

 

And this means at least 3 percent. annual interest. A pitiful number. But when calculated in money, the amount is huge – i.e. about 750 euros per year in interest alone.

 

Let me remind you. The “profit” is only €360. Do you feel how this investment will pay off?

 

Now, smart moles, let’s calculate again:

 

how long will it take for such an investment to pay off?

 

and how much interest will you pay over those 70 years,

 

while the professor recalculates the (non)payback, I think we should think more broadly.

 

Let’s think

 

Financially, it really doesn’t pay off for you to renovate anything.

 

That's why experienced renovation consultants don't talk about numbers, but about feelings:

 

"How much more fun it will be to live, how much better the quality of life will be..."

 

Because, apparently, emotional payback is the only real one. Those noodles on your ears are a really good feeling, especially when you have to pay the bills later.

 

Also, if you didn't know - a third of the renovation consists of, for example, extending the balcony. Or half of the renovation. These are things that have nothing to do with energy efficiency.

 

And does the renovation pay off for the state?

 

Of course.

 

Jobs are created, money circulates, and about half of the amount you paid returns to the budget through taxes. And you get good emotions back.

 

The cynicism of the state catches my eye.

 

They want you to pay less for heating. They want you to have more money left.

 

They even increase VAT from 9 percent to 21 percent. – and still wants you to pay less.

 

Don't tell me. Well, can anyone be more cynical? Such cognitive dissonance.

 

So:

 

Renovation pays off for the state.

 

For a person – except emotionally.

 

New walls, old mistakes.

 

P.S. And what to do with that agency that announces that people will save 360 ​​euros after renovation? I don't know. Well, if people have 10 points added to their math exam and they can't do the math themselves, then it's probably a good thing that such agencies are cheating them?"