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Sueño Del Sur
Southern Dream Condominium Resort
San Juan del Sur, Nicaragua
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SUEÑO DEL SUR
Annual Rental Return Projections
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| Hotel Occupancy Rate |
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50% |
70% |
80% |
90% |
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| Rental Days Per Year |
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183 |
256 |
292 |
329 |
| Average Daily Rate ( Note 5) |
$225 |
$225 |
$225 |
$225 |
$225 |
| Annual Gross Income |
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$41,063 |
$57,488 |
$65,700 |
$73,913 |
| Less Management Fee |
35% |
$14,372 |
$20,121 |
$22,995 |
$25,869 |
| Less Utilities and Maintenance |
$15 |
$2,738 |
$3,833 |
$4,380 |
$4,928 |
| Less HOA Fees |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
| Total Expenses |
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$18,709 |
$25,553 |
$28,975 |
$32,397 |
| Owner Net |
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$22,353 |
$31,934 |
$36,725 |
$41,516 |
| Rental Return on Investment |
$300,000 |
7.5% |
10.6% |
12.2% |
13.8% |
| Potential Appreciation |
15% |
15.0% |
15.0% |
15.0% |
15.0% |
| Total Return on Investment |
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22.5% |
25.6% |
27.2% |
28.8% |
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| Notes & Assumptions: |
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1. The intention is to hire a professional management company to manage the hotel once the condominiums have been sold. Accordingly, these numbers are estimates only, based on current observation of financials in the area and the unit being 100% available for the rental pool. Final Rental revenue, HOA fees, management fees, utilities and maintenance have not been set.
2. One of the tasks of the management company is to market for nightly/weekly rentals. An owner's individual unit does not have to be rented in order to share in the rental pool income...it just needs to be available for rent. Accordingly, Rental pool income will be prorated for the number of nights the unit (or part of unit) is available for rent, and adjusted by floor and unit type.
3. Income (and management fees) will be eliminated for each day the owner is in residence, and the unit is not in the rental pool.
4. Under Law 306, the condo owner can occupy the unit up to 30% of year (109) days, thereby becoming eligible for tax breaks on property and income tax.
5. Revenue estimates are based on a typical "Elegante" unit. (Larger units are expected to generate a higher Rent.) Condo owners rent their whole unit (est. $225 night above ) or can separately rent the main suite for less (est. at $175/nt) or the lockout bedroom (est. at $75/nt.)
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