Rising on the beachfront lot just south of our immensely popular three bedroom Beach Villa is a slightly smaller two bedroom version. Like its bigger cousin the 2BR model sports a pool, fine finishes, rock solid construction and sits on a 96’ wide piece of beach in the Peninsula’s most desirable neighborhood. Although this particular home is already sold we are planning to build similar houses on the three parcels next door. And what makes them so attractive is the value for the owner, both as a fabulous place to live or vacation and as a source of recurrent income.
Here’s the breakdown:
--You purchase the home site for US$350,000 and simultaneously contract with A. L. Construction to build the home at a price of US$282,500. This price includes all utility connection fees, landscaping and gravel driveway.
--Add appliances and furniture for approximately US$17,500 and you have a total investment of US$650,000.
--Agree to a rental contract under which we put the home in our rental pool.
--Based on a year of rental history with our three bedroom Beach Villa we believe that the two bedroom version will rent for an average of US$2,500 per week and at a minimum occupancy rate of 50% will generate gross returns of at least US$65,000. With a revenue split of 60-40 in favor of the owner your projected gross revenue would be US$39,000 per year. And your expenses? Not much more than if you didn’t rent it out: HOA fees (around $1,000), insurance ($3,000), water/garbage ($500), electricity (varies by occupancy but figure $3,500) and exterior maintenance ($1000), a total of around US$9,000 or a net of US$30,000 per year.
--What do we pay for our 40%? All marketing costs, credit card fees (3.35%), interior maintenance, cleaning (labor and supplies), expendables (soap, shampoo, toilet paper etc.), landscape maintenance and pool maintenance. We also provide all airport transfers, concierge services and handle the paperwork and hotel tax registration on your behalf with the Belize Tourism Board .
--In fact, we are so confident of the rental market and our ability to manage your home that we will GUARANTEE A 5% NET RETURN ON YOUR INVESTMENT (US$32,500) for the first two years following the completion of construction.
If you can find a more attractive real estate/lifestyle investment in Belize—or anywhere else for that matter—we’d love to hear about it. Contact me at email@example.com to learn more about how easy it is make your dream of a second home in Cocoplum come true.