Our financial analysis is based on a national average
of 70% occupancy during high season and 35% during low season, giving an
annual
average of 52.5%. Research has shown that desirable areas in the north of
St Lucia can achieve above average occupancy levels.
Note that while rental
income will comfortable service most mortgage loans and in many cases yield
a profit, the main profit in this type of investment comes from the capital
appreciation of the property.
Capital Appreciation
Example-1, an appreciation of 10% over
5 years on a purchase price of US$445,000 will yield US$716,677 and at
15%
over
5
years yield US$895,054.
Example-2, an appreciation of 10% over 5 years on a purchase price of US$680,000
will yield US$1,095,147 and at 15% over 5 years yield US$1,367,723.
Example-3, an appreciation of 10% over 5 years on a purchase price of US$855,000
will yield US$1,376,986 and at 15% over 5 years yield US$1,719,710.
Historically
the Rodney Bay waterfront town houses have achieved 10% to 15% appreciation in
the past 10 years. Therefore you would double your money is 5 years on capital
appreciation alone.
Owner Revenue Forecasts
The model is structured on very conservative criteria as follows:
Income and Return On Investment (ROI)
- ROI 7.5%
- At
65% occupancy this increases to US$101,170 p.a. - ROI 8.6% -
ROI 7.5% - At
65% occupancy this increases to US$101,170 p.a. - ROI 8.6% -
ROI 7.5% - At
65% occupancy this increases to US$101,170 p.a. - ROI 8.6%All Potential Purchasers Must Be Aware Of The Following