Crystal Azure Beach Resort > Investment Return

Ongoing Villa Expense Estimates

The estimated ongoing cost of villa ownership has been outlined in the following scenarios:

Rental Villa (participating in rental program)

Insurance & Utility Costs

Building and villa interior insurance is currently estimated at $400 per month per villa based on 2006 rates
Each villa will be metered for electricity/water and cost will be determined by local utility companies
Resort plans provide for installation of a solar electricity system and desalinization water plant to reduce costs
Owner pays short term rental utilities; renter pays long term rental utilities (more than one month)

Monthly Maintenance/Strata Fees

Monthly fees will be determined after resort completion but can be expected to range from $0.35 to $0.50 per square foot
Comparison: average monthly maintenance fees for Grand Cayman luxury villas range from $0.75 to 1.25 per square foot
Fees will cover the cost of maintaining the resort's common areas
Fees will be deducted from rental revenue generated and balance will be reported monthly

Government Tourism Rental Tax

Cayman law provides for a 10% tax on tourist accommodations (10% of the nightly rental rate)
The resort will manage the collection, payment and reporting of all government taxes

Resort Rental Management Fee

This fee is currently estimated at 20% to 30% of the nightly rental rate based on reservation type
The fee will cover the resort's costs for marketing, management, housekeeping, etc.
Fees will be deducted from rental revenue generated and balance will be reported monthly

Owner Occupied Villa (not participating in rental program)

Insurance & Utility Costs

Building and villa interior insurance is currently estimated at $400 per month per villa based on 2006 rates
Each villa will be metered for electricity/water and cost will be determined by local utility companies
Current resort plans provide for installation of a solar electricity system and desalinization water plant to reduce costs

Monthly Maintenance/Strata Fees

Monthly fees will be determined after resort completion but can be expected to range from $0.35 to $0.50 per square foot
Comparison: average monthly maintenance fees for Grand Cayman luxury condos range from $0.75 to 1.25 per square foot
Fees will cover the cost of maintaining the resort's common areas
Housekeeping services will be available for an additional cost to be determined after resort completion