EXAMPLE OF PURCHASE AND RUNNING COSTS Typical example figures for illustration purposes:
Example Purchase Price (Freehold and Fully Furnished)
| $300,000
| Total Deposit assumed @ 25%
| $75,000
| To secure Plot and hold Price (15% within 30 days)
| $45,000
| Mortgage amount
| $225,000
| | | | Monthly Mortgage (assumed @ 5.5% over 30 years)
| $1,278
| Building / Contents Policy & Property Taxes
| $300
| Example Management Costs
| $250
| Utilities average per Month (electricity, water, phone, TV, etc)
| $485
| Homeowners Association Fees (includes Lawn Care)
| $115
| | | | TOTAL COST ESTIMATED PER MONTH
| $2,428
| | | | ANNUAL COST
| $29,136
| | | | ESTIMATED INCOME:
| | | | Average Rental Income per Week
| $1,080
| | | | Total Annual Income @ 35 Weeks
| $37,800
| Total Annual Income @ 40 Weeks
| $43,000
| Plus additional Pool Home Receipts
(assumes 20 weeks/year when guests pay $200/week for pool heat)
| $4,000
| | | | NET ANNUAL RESULT (assuming just 35 weeks rented)
| +$8,664
| | | | NET ANNUAL RESULT (assuming just 40 weeks rented)
| +$16,708
| | | | Add appreciation on the Villa @ just 5% pa
(2003/2004 experienced growths of over 15%)
| +$14,054
| | | | Plus add your own Holidays in your Villa: 12 weeks each year !
| +$10,800
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Figures are for illustration purposes only.
Please note the following features are included in example villa prices:
Private swimming pool (usually heated) with screen enclosure, irrigation system, lawn, fully furnished home with all furniture included down to towels etc. and a fully fitted & equipped kitchen with cabinets and all appliances including microwave, dishwasher, washing machine, drier, window blinds, double garage, full set of patio/pool furniture with padded loungers. TV’s, paintings, floral arrangements etc.
Not included
Jacuzzi, any lot premiums applicable, closing costs & contingency funds.
Closing costs monies are required for items such as pre-payment for taxes, insurance, notary costs and title insurances. The amount is dependent on many factors like the purchase price, mortgage amount, property taxes etc. We can provide you with an estimate of your own circumstances now if you wish but for a rough and ready figure we would recommend allowing around $5,000 for this. As stated on our mortgage page: please also note that some lenders require you to show funds equivalent to 6 months mortgage payment when approving a loan.
The above rental examples would still leave a minimum of 12 weeks (17 weeks with 35 weeks rentals) for use by you, your family or friends. The equivalent minimum value each year to you would be $10,800 !!
The example illustrates between 35 and 40 weeks of rentals as many clients who currently need the income from the rents for these periods actually achieve this. Many achieve more then 40 weeks. Some cash purchasers are generally happy with just 20 weeks or even less, to pay for the expenses of the villa and several holidays each year in it.
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