Our financial analysis is based on a national average
of 70% occupancy, which has been sustained for the past 2 years as the St
Lucia tourism industry continues to grow steadily. Research has shown that
desirable areas in the north of St Lucia can achieve above average occupancy
levels, e.g. the Rodney Bay area.
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.
Example-1, an appreciation of 10% over 5 years on a purchase price of US$300,000
will yield US$483,153 and at 15% over 5 years yield US$603,407.
Example-2, an appreciation of 10% over 5 years on a purchase price of US$700,000
will yield US$1,127,357 and at 15% over 5 years yield US$1,407,950.
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.
Based on a 1 bedroom luxury villa, costing US$300,000, purchased with a 60% mortgage and achieving an average occupancy of 70%.
| US$ |
|
|
Estimated nightly rate (1.5 rooms) |
$150.00 |
| Annual occupancy level |
70% |
| 1-Bed Villa |
|
| Nightly rate |
$150.00 |
| Weekly rate |
$1,050.00 |
| Yearly rate |
$54,600.00 |
| Monthly rate (100% occupancy) |
$4,550.00 |
| Monthly rate (adjusted to 70%) |
$3,185.00 |
| Less Management Commission at 25% |
$796.25 |
| Less Service Charge (monthly) |
$200.00 |
| Monthly Surplus |
$2,188.75 |
| Purchase cost of property |
$300,000.00 |
| Mortgage at 60% |
$180,000.00 |
| Assuming loan over 20 years at 6% |
|
| Monthly repayments |
$1,289.00 |
| General monthly overheads (utility bills etc) |
$150.00 |
| Total Monthly Outgoings |
$1,439.00 |
| Projected net income (monthly) |
$749.75 |
| Projected net income (yearly) |
$8,997.00 |
| Projected net income (5 yearly) |
$44,985.00 |
Based on a 3 bedroom luxury villa, costing US$700,000, purchased with a 60%mortgage and achieving an average occupancy of 70%
| US$ |
|
| Estimated nightly rate per room |
$100.00 |
| Annual occupancy level |
70% |
| 3-Bed Villa |
|
| Nightly rate |
$300.00 |
| Weekly rate |
$2,100.00 |
| Yearly rate |
$109,200.00 |
| Monthly rate (100% occupancy) |
$9,100.00 |
| Monthly rate (adjusted to 70%) |
$6,370.00 |
| Less Management Commission at 25% |
$1,592.50 |
| Less Service Charge (monthly) |
$400.00 |
| Monthly Surplus |
$4,377.50 |
| Purchase cost of property |
$700,000.00 |
| Mortgage at 60% |
$420,000.00 |
| Assuming loan over 20 years at 6% |
|
| Monthly repayments |
$2,873.92 |
| General monthly overheads (utility bills etc) |
$350.00 |
| Total Monthly Outgoings |
$3,223.92 |
| Projected net income (monthly) |
$1,153.58 |
| Projected net income (yearly) |
$13,842.96 |
| Projected net income (5 yearly) |
$69,214.80 |