Vacation Rental Property BenefitsSCHEDULE AN APPOINTMENT
Benefits of Vacation Rental Property
While some benefits of owning a vacation rental property are self-evident, often it’s the question of “How do I get started?” and “How does it all work?” Our Investment Coordinators have additional answers, but vacation rental property ownership is not as high-brow as one might imagine. The opportunity in many areas, specifically internationally, are U.S friendly and we like to say, “What if you could buy real estate in 1950s Hawaii?” The time for investing is now.
What is Fractional Ownership?
For the same cost of buying a lot in Belize, you could instead own a share of a custom-built beach home or private island – like Little Harvest Caye. The property is completely furnished with local, handcrafted materials and staffed with a full-time professional chef & concierge to meet your every need. Your home has a vehicle, a golf cart, and all the water toys that you can handle. Fractional ownership offers all the fun of vacation home ownership without the hassle and cost of a traditional second home.
When you become an owner of a fractional property, you share in the ownership structure of an LLC company with up to nine other fractional owners which mean that fractional owners are just that – owners. You share in the ownership of the land, the home, the vehicles, all the furniture, and everything in between. All owners make property decisions together, and you can sell your share at any time you choose.
Owners have exclusive access to your beach home or the private island in the fractional model for five (5) weeks every year with more weeks attributed to you when you own multiple shares. The decision is yours concerning which weeks you want to use each year. The system helps owners avoid conflicts when selecting weeks.
Another great benefit of fractional ownership is the opportunity to earn money as a vacation property real estate investment. Many fractional owners choose to vacation 2-3 weeks each year and then rent out their remaining weeks for passive income. Because of the shared annual expenses with other owners, some prefer to offset their financial responsibility by generating passive income throughout the year. In fact, many owners generate up to 10% annual returns from their share of fractional ownership each year.
With vacation home ownership, many people tend to overlook a few things:
- Maintenance and upkeep of the home
- Property management and rental process
- Accounting and annual tax preparations
Our fractional ownership model addresses all of these items. Our company employs a full-time concierge on-site in Placencia to assist owners throughout their vacation, from arrival to departure. Each home is staffed with a property management team to handle services such as cleaning and staging for rentals. Finally, we have a full-time accountant on staff to ensure each property attains budget targets each year so that owners can enjoy the financial benefits of fractional ownership.
How is Fractional Ownership Different from a Timeshare?
Although the ownership structures and arrangements, generally known as “timeshares,” vary from place to place and among different developments, these arrangements always involve a large group of owners or users, an organizer who put the deal together, and an outside management company that will operate the property. Frequently, participants in a timeshare do not own any real tangible asset.
Typically, in a timeshare arrangement, the user has no control over the actual management of the property, they pay high management fees, and rarely see the value of their investment tied to the real value of the underlying property.
By contrast, owners of fractional vacation homes share the following benefits.
- True ownership of property.
- The ability to benefit financially from the appreciation of their asset over time.
- Exclusive access to a beachfront estate for five weeks out of the year.
- Proven rental history and net income.
- Owners have total control over the management of the property.
- Reasonable management fees!
What are the Basic Benefits and Terms of Ownership?
- As an owner, you will own 10% of a single asset debt free international corporation that owns the lot with a home on it as well as all of the vehicle, furniture and other assets associated with the property.
- You may sell your their share at any time. Given the current and expected future growth in our chosen international sites and the proven excellent rental history, you should be able to liquidate your share with relative ease and at a fair profit, should you so desire. You also have additional flexibility with the opportunity to trade in their share for a full-time home constructed by our development company if you later decide you would like to make the international location your full-time residence or own traditional vacation home.
- The Management of the Property is self-directed. No outside entities control the management of this property. A majority vote of the owners of the property decides all investment and management decisions.
- Each owner has exclusive access to the property for five weeks out of the year. Everyone can generate rental income by renting all or part of his or her selected time.
- A one-time investment from $150,000 to $289,000 depending on the chosen home.
- Low-annual owner expenses are split evenly among the owners. Fees include property taxes, insurance, utilities, on-site staff, home and vehicle maintenance, and improvements. Rental income earned throughout the year offsets expenses as the asset produces positive cash-flow.
The Passive Income Opportunity in Belize
Belize is known as Mother Natures best-kept secret, but it won’t remain a secret forever. The vast untouched rainforests, ancient Mayan ruins, an abundance of natural wonders, and a vibrant and thriving mix of flora and fauna make Belize a vacationer’s dream come true.
Being one of the only English-speaking countries in Central America is just one of the perks to enjoy. Explore the mainland and delve into the depths of sacrificial caves or climb mountains only to rappel into a giant cenote (sinkhole). Visit one of the many Mayan ruins scattered across the country, rappel waterfalls, or go zipping through the treetops!
When you begin to crave the sun and sea, your options are endless. Enjoy the beaches of Placencia or take a short boat ride out to the islands. Infinite diving and snorkeling sites await you filled with exotic marine life and colorful coral gardens. Swim with sea turtles or nurse sharks and stingrays. Snorkel alongside giant whale sharks or frolic with a pod of dolphins as there is always something new to see under the sea.
After all this adventure, think how amazing it will be to return to your own vacation home on the Placencia Peninsula, beach, or island and have a cocktail, a good night’s sleep, only to wake up tomorrow and do it all again! Why wait?
$1US = $2BZ. US currency is accepted everywhere. Credit cards (Visa and MasterCard) and traveler’s checks work at most places. Leave your American Express card at home. You can also get a cash advance on your credit card at the Atlantic Bank ATM & inside Scotia Bank in Placencia. It is recommended to bring small bills with you because you may have a hard time getting change for $50’s and $100’s.
Passports are required. U.S. or Canadian citizens do not require visas.
The timezone is Central Standard. Belize observes Mountain Standard during Daylight Savings time in the U.S. Belize does not follow Daylight Savings.
The climate is subtropical with an annual average temperature of 80 degrees F.
Diving, Snorkeling, & Fishing
Bring your own or leave it at home. Many divers prefer to bring their BC, regulator, wetsuit, fins, and mask. Leave your weights at home as you may rent them during your stay. The airport will confiscate spear guns so do not travel with them. Although most fishing trips include bait and tackle, serious fly fishing and spin casting anglers will want to bring their gear.
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