PanamaFractional.com - Panama Fractional Vacation Home Ownership

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Lot 6 "Casa de Playa"
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Volcan Baru is a volcano that is less than an hour drive from our home

PanamaFractional.com - Panama Fractional Vacation Home Ownership - Own an ocean front estate and live the dream! Fractional vacation home ownership is now a real possibility. We have 2 fractional vacation homes for sale. - Fractional home ownership vacation, fractional home, fractional homes, fractional home ownership, panama real estate, panama fractional home, panama home

Investment Potential

If you decide to rent all 4 of your weeks, here is a possible Performa of the rent that you could receive as a return on your investment.

Here is the rental schedule for the year on this property.

Jan 7 to April 30	$3495 per week (Sat to Sat rentals only)
May 1 to Nov 30	$2995 per week (Sat to Sat rentals only)
Dec 1 to Jan 6	$3995 per week (Sat to Sat rentals only)

For this example we will use the lowest rental rates of the year, $2995 per week. There will be other fees associated with this property that will help offset the owners cost. EX. There will be a cleaning fee that the guest pays to offset the cleaning and turn over fees for this rental period. So we will not take into consideration any additional income other than the rent.

If an owner rents all 4 weeks at $2995 for a total of $11,980.00

With the 25% management fee of $2995, that leaves a total to the owner of $8,985.00 (Net rental Income for the year)

With a purchase price of $140,000 that gives the owner about a 6.4% cash on cash return on their money. This example does not take into the APPRECIATION the owner will also experience. That will be explained below.

Financing Options

If you are financing your purchase and you have put down 25% or $35,000 and you have a monthly payment on the balance, here is a break down:

Purchase Price	$140,000
25% down payment	$35,000
Loan Amount	$105,000
Monthly Payment	$734.21*

(*$105,000 loan at 7.5% for 30 years, for example purposes only)

Using the income from the example above, here is what your cash flow could look like.
$8,985 yearly income / 12 months = $748.75 Income per month. So in this example the property will pay for itself on the rental cash flow.
(For this example, no other income or expenses are being considered.)

Appreciation Potential

Ocean front property has always been the highest appreciating property around. As a vested owner of this home, your "share" will increase in value along with the appreciation. We will use a modest appreciation rate of 6% for this example over a 10 year period to show you the potential in the long run.

Year 1 Value	$140,000	Purchase Price
Year 2 Value	$148,400	($140,000 x 6%)
Year 3 Value	$157,304	($148,400 x 6%)
Year 4 Value	$166,742	($157,304 x 6%)
Year 5 Value	$176,746	($166,742 x 6%)
Year 6 Value	$187,352	($176,746 x 6%)
Year 7 Value	$198,592	($187,352 x 6%)
Year 8 Value	$210,508	($198,592 x 6%)
Year 9 Value	$223,139	($210,508 x 6%)
Year 10 Value	$236,527	($223,139 x 6%)

Future value of $236,527 - purchase price of $140,000 = $96,527 increase in value over 10 years. You then add the rent received over the same 10 year period of $8,985 x 10 = $89,850 in rental income.

$96,527 appreciation + $89,850 rental income = $186,377 in income and equity.
That is a 133% return on your original investment of $140,000 over a 10 year period.

These results may vary based on your use and the weeks you have for any given year. You may want to use the property one, two or all of your weeks. That is perfectly fine. That will obviously affect your return on your investment. That is why this is as much a Lifestyle purchase as an Investment. How you use it is up to you! The investment and lifestyle choices are yours!

The above numbers are examples and can not be guaranteed.