 |
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Average daily cost based on 45 days of use per year over 10 years |
$535 |
$2,058 |
$6,029 |
This is for illustration purposes only. Actual results may vary. See details below. Cost Per Day Analysis: |
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Purchase price |
$375,000 |
$425,000 |
$3,000,000 |
Down payment |
$0 |
$0 |
$600,000 |
Cost of furnishing |
$0 |
$0 |
$200,000 |
First year's Annual Dues |
$7,000 |
$27,000 |
$0 |
Total cash up front |
$382,000 |
$452,500 |
$800,000 |
Total mortgage on property |
$0 |
$0 |
$2,400,000 |
Annual operating cost (4%) |
$0 |
$0 |
$120,000 |
Annual capital reserves(1%) |
$0 |
$0 |
$30,000 |
Annual due |
$7,000 |
$27,000 |
$0 |
Annual mortgage payments (interest only at 7%) |
$0 |
$0 |
$168,000 |
Opportunity cost on cash at closing (8%) |
$30,560 |
$36,200 |
$64,000 |
Housekeeping fees ($25 per night) |
$1,125 |
$0 |
$6,750 |
Yearly cost (including investment opportunity cost) |
$38,685 |
$63,700 |
$388,750 |
Daily operating cost based on 45 days of use per year |
$858 |
$1,416 |
$8,639 |
This is for illustration purposes only. Actual results may vary. 10 Year Liquidation Analysis: |
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Original investment* |
$375,000 |
$425,000 |
$3,000,000 |
Less membership transfer fee (20%) |
$0 |
$85,000 |
$0 |
Pre-tax opportunity cost/appreciation (4%) |
$179,111 |
$204,104 |
$1,440,733 |
Sale proceeds/end of term membership deposit refund |
$554,111 |
$340,000 |
$4,440,733 |
Less real estate commissions (6%) |
$33,246 |
$0 |
$266,444 |
Cash at liquidation |
$520,865 |
$340,000 |
$4,174,289 |
Less original investment and applicable opportunity cost |
$375,000 |
$629,104 |
$3,000,000 |
Net gain (loss) after liquidation |
$145,865 |
($289,104) |
$1,174,289 |
Total operating cost |
$386,850 |
$637,000 |
$3,887,500 |
Total gain (loss) after operating cost |
($240,985) |
($926,104) |
($2,713,211) |
Average daily cost based on 45 days of use per year over 10 years |
$535 |
$2,058 |
$6,029 |
