NOTE FROM THE
EDITOR
This Weeks Highlight is Boutique Hotel Room Suites in
As your aware, recently H purchased an existing Hotel in
Please see the purchase example below, for the new hotel in
Our Private membership can get on board with this fantastic investment by simply investing early as a pre-launch offer with a £1000 reservation fee. This will allow all our members to reserve a unit prior to the official launch at which time we will be able to divulge further information including the hotel name and location.
Should you decide at this stage that you don’t want to invest the developer will refund the £1000 res fee, however I can assure you once you know which hotel this is that you will NOT want a refund!
PURCHASE EXAMPLE.
Purchase price from £250,000
Deposit required 30% = £75,000.
Stage payment interest (approx) £10,000.
Balance remaining £175,000 + stage payment interest = £185,000.
Projected outgoings on above if you took a mortgage at 6% interest only = £11,100 + management fees of approx 3% of the purchase price = £7,500
Total projected outgoings of £18,600
PROJECTED RENTAL RETURNS
£250,000 pool view studio.
Year 1 @ 10% Rental Guarantee = £25,000 minus approx outgoings of approx £18,600 showing a potential profit of £6,400 annually which gives 8.5% net yield.
Year 2 @ 10% Rental Guarantee = £25,000 minus approx outgoings of approx £18,600 showing a potential profit of £6,400 annually which gives 8.5% net yield.
This could be extended to a 10 year rent guarantee if you desire.
50/50 net rental share projections which can be taken from year one after completion or typically from year 3 after the 2 years of rent guarantee.
Year 3 @ 50/50 net rental share;
If H Hotels & Resorts were to rent the rooms at £325 per night they would then deduct approx £25 per night for chambermaid, toiletries, laundry etc.
This would leave £300 per night X 50% investor share of the income = £150 per nights occupancy.
At this stage we need to look at the occupancy projections and targets for this hotel.
The target occupancy for a good quality 5 star hotel in the
85% = 310 nights X £150 = £46,500 if you then deduct £18,600 for projected out goings this could leave you with £27,900 profit! Or net yield of 37% per annum on the £75,000 invested.
If we play devils advocate and lower the occupancy levels the projections could be as follows.
70% = 255 nights X £150 = £38,250 if you then deduct £18,600 for projected out goings this could leave you with £19,650 profit! Or net yield of 26% per annum on the £75,000 invested.
42.5% = 155 nights X £150 = £23,250 if you then deduct £18,600 for projected out goings this could leave you with £4,650 profit! Or net yield of 6% per annum on the £75,000 invested.
What rate are banks currently paying in interest rates? 1.5% - 2 %???
Plus you also need to remember the growth on the value of the property, projected completion value on this property in 2014 would be in the region of £400,000 thus showing a profit of £150,000 from an investment of £75,000, not bad in 18 months?
Not forgetting, you can pay the Deposit, by releasing equity from other property you have or you could invest your Pension.
Please be advised these units will sell quickly so early reservations are recommended.
Best regards,
Jay
If You Would Like
To Join Our Private Membership and also Benefit from these offers or any Future
Offers and Discounts.
PLEASE CLICK HERE
PLEASE CLICK HERE
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