50/50 O W N E R S H I P S C H E M E
I N V E S T I N D U N A S B E A C H R E S O R T F O R O N LY ÂŁ 5 1 , 9 7 4 A N D R E C E I V E 1 8 % P. A . G R O W T H F O R 7 Y E A R S
50/50 OWNERSHIP SCHEME
www.sipppropertyinvestment.com
Purchase a 50% share in one of our luxurious two bed apartments and earn unrivalled returns 65% Deposit €1.25-£1.00 fixed rate on full deposit 5% Discount Guaranteed mortgage options on 30% completion balance Free incentives: Legal services & Free Hotel Excellence Furniture Available for SIPP and Cash Purchases
50% S HARE PAYMENT E XAMPLE 2 BED APARTMENT 50% SHARE LIST PRICE
= € 99,950
€99,950 x 65%
= € 64,968
€1.25 - £1.00
= £ 51,974
Fixed exchange Rate
Deposit Required
Euro Equivalent
= € 57,171*
5% Discount
= € 4,997
30% on completion
= € 29,985 (via guaranteed mortgage)
Net price after 5% discount and Ex rate TOTAL DISCOUNT % DISCOUNT
= € 87,156*
€ 12,794 12.8%
*The above calculations assume an actual spot €/£ rate of €1.10-£1.00
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50/50 OWNERSHIP SCHEME
5 0 % Ow n e rs h i p O p t i o n
R e n ta l P ro j e c t i o n s
68%
80%
95%
“Global Average”
“On-Island Average”
“Highest On-Island Occupancy”
68% Occupancy
80% Occupancy
95% Occupancy
€75 per night
€75 per night
€75 per night
Occupancy Days
248.20
292.00
346.75
Gross Annual Revenue
€18,615
€21,900
€26,006
Owner Share 50%
€9,308
€10,950
€13,003
Rental Projections 50% Net Room Rate
Owner Expenses Community Fee at 50%
€600 (50% of annual £1,200 fee)
€600 (50% of annual £1,200 fee)
€600 (50% of annual £1,200 fee)
Net Income for Owner
€8,708
€10,350
€12,403
Return on Investment
10.0%
11.9%
14.2%
(ROI)
50/50 OWNERSHIP SCHEME
www.sipppropertyinvestment.com
G ua r a n t e e d M o rt g ag e The Key Details The Resort Group will contractually 'guarantee' to be the lender of the completion balance in the unlikely event the client is declined a conventional mortgage application The Resort Group will agree to lend at the prevailing interest rates at the time of completion 100% of the client’s share of the net rental income generated will be used to pay off the mortgage
There are 2 guaranteed mortgage options to choose from
Option 1
M ORTGAGE C ALCULATOR (Assuming 8% interest - current prevailing bank rate)
100% of the client’s share of the net income will be used to pay off the completion mortgage until the balance has been paid Once the completion balance has been fully paid, the client will, from then on, receive their share of net rental income and will fully own their 50% share of the property
COMPLETION MORTGAGE
= €29,985
RENTAL INCOME AT 68% OCCUPANCY
= €725.66 PER MONTH (€8,708 PER YEAR )
Option 2 100% of the client’s share of the net income will be used to pay off the completion mortgage for a minimum of 6 years* If the mortgage balance has not been completely repaid in that time, 100% of the client’s share of the net income will continue to be paid until the balance has been cleared up to a maximum of 10 years After 10 years any remaining completion balance will be completely written off Once the completion balance has been fully paid or written off, the client will, from then on, receive their share of net rental income and will fully own their 50% share of the property * 100% of the client’s share of the net rental income will be paid to The Resort Group for a minimum of 6 years even if the completion balance is paid off within that time.
Assumed interest rate
= 8%
Repayment mortgage over 4 years, 1 month
= €719.35 per month
TOTAL REPAYMENT AMOUNT
= €35,247.24
TOTAL INTEREST PAYMENTS
= €5,262.24
Based on an 8% interest rate and resort occupancy of 68%, the mortgage will be paid off within 4 years, 1 month!
50/50 OWNERSHIP SCHEME
www.sipppropertyinvestment.com
Return on investment Scenario 1
Scenario 2
Sell 5 years after completion
Sell 7 years after completion
(Total 7.5 year investment term)
(Total 9.5 year investment term)
Gross Price at reservation Value on completion
€199,900 (i.e. €99,950 x 2) €236,876 (conservative 7% growth during 2.5 year build cycle)
Gross Price at reservation Value on completion
€199,900 (i.e. €99,950 x 2) €236,876 (conservative 7% growth during 2.5 year build cycle)
Assumed growth after completion (Conservative)
7% per annum for 5 years
Assumed growth after completion (Conservative)
7% per annum for 7 years
Sale price after 5 years
€332,231
Sale price after 7 years
€380,371
Less Net Purchase Price
€174,312 (i.e. €87,156 x 2)
Less Net Purchase Price
€174,312 (i.e. €87,156 x 2)
Total Growth
€157,919
Total Growth
€206,059
50% share of growth
€78,960
50% share of growth
€103,030
+11 months of mortgage free rental
€ 7,975 (€725 x 11 months)
+35 months of mortgage free rental
€25,375 (€725 x 35 months)
GROSS 50% REVENUE
€86,935
GROSS 50% REVENUE
€128,405
Less completion costs at 6.5%
€6,497
Less completion costs at 6.5%
€6,497
NET 50% REVENUE
€80,438
NET REVENUE
€121,908
Sterling Equivalent
£73,125 (assuming €1.10-£1.00 conversion rate)
Sterling Equivalent
£110,825 (assuming €1.10-£1.00 conversion rate)
INITIAL INVESTMENT REQUIRED
£51,974
INITIAL INVESTMENT REQUIRED
£51,974
7.5 year ROI %
140.7%
9.5 year ROI %
213.2%
Annual average ROI %
18.7%
Annual average ROI %
22.4%
50/50 OWNERSHIP SCHEME
www.sipppropertyinvestment.com