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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 7% interest only would be an annual interest payment of $12,978. |
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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 $12,978 per year shall net $21,400 per year or 17.3% 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 2010/2011 per night rental rate for an Ocean View One Bedroom Unit in the Turks and Caicos Islands is $634. The above proformas are based on $299 per night or approximately 50% less than the 2010/2011 annual rental rate, not the high season rental rate which is much higher. |
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For further information, click
here to view the investment pro forma.
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