Investment Proforma
| Average Rate Per Night | 60% Occupancy | 65% Occupancy | 70% Occupancy | 75% Occupancy |
| Gross Income at $299/night | $65,481 | $70,938 | $76,395 | $81,851 |
| Maintenance Fee | $3,600 | $3,600 | $3,600 | $3,600 |
| Use Fee | $12,045 | $13,049 | $14,053 | $15,056 |
| Management Fee | $19,644 | $21,281 | $22,918 | $24,555 |
| Average Net Rental | $30,192 | $33,008 | $35,824 | $38,640 |
| Two Week Bonus | $4,186 | $4,186 | $4,186 | $4,186 |
| Gross Net/year (including 2 free bonus weeks) |
$34,378 | $37,194 | $40,010 | $42,826 |
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Assuming 60% occupancy at $299 per night, the gross income would be $65,481 per year. |
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After deducting the estimated expenses for maintenance, use and management fees, the gross net return is $30,192 per year. The use fee and management fee is only charged when the Unit is occupied. |
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Gross net per year, including the two free weeks use valued at $4,186, is $34,378 or a 11.3% return per year on the $309,000 purchase price. |
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Assuming 40% down, the purchase price with the appropriate under construction discount will be $309,000 and the down payment would be $123,600. |
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10 Year balloon note ($185,400) at 8% interest only would be an annual interest payment of $14,832. |
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Gross net per year is $30,192 and the two free weeks valued at $4,186 is $34,378 or a 27.8% return per year on the $123,600 invested (cash actually in). |
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The $34,378 less the interest payment of $14,832 per year shall net $19,546 per year or 15.8% based on the $123,600 invested (cash actually in). |
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The above Proforma does not include the annual appreciation which has been between 10% and 20% per year over the last ten years. The current annual 2007/2008 per night rental rate for an Ocean View One Bedroom Unit in the Turks and Caicos Islands is $614. The above proformas are based on $299 per night or approximately 50% less than the 2007/2008 annual rental rate, not the high season rental rate which is much higher. |
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