Click on the questions below to see the answers to the most common questions related to Placencia Belize fractional home ownership. If you have further questions feel free to contact us .
Historically the existing beach homes have run a very high occupancy rate with bookings for Jammin Gecko already very strong for 2015. The last several years have produced a nice profit for the owners in each home with each owner typically using the home 2 weeks and renting out the remaining weeks.
The detailed proforma for LHC shows a higher rental rate due the increased size of the home, full-time chef and staff and the fact it is a private island. Also on the proforma, some expenses on LHC are obviously higher due to it being a FULL-service island such as fuel for transportation to/from LHC and increased staff costs associated with the higher level of service. However, electricity expense is lower due being off the grid which was by far the greatest expense of the mainland homes.
Vision Properties maintains a very detailed bi-weekly rental income and expense history on the existing homes that is provided to each owner. These detailed financials are available for review in the due diligence period of a potential purchase.
Vision Properties utilizes a draft system to ensure fairness of owner bookings. Owner weeks are picked on a draft system with the owner who picks first changing each year. The first round of drafts is 2 weeks, second round 2 weeks and the final round of 1 week. The 2 weeks at Christmas are in most demand and generate the highest rental income of the year. In the past, owners have elected to rent those 2 weeks out with the income generated used to reduce all owners expenses for the year. Owners only select weeks they wish to use or rent themselves all other weeks are allocated to the shared rental pool.
The 2 weeks over Christmas/New Years are rented out and not for owner use with the income used to reduce all owners’ expenses for the year. This does two things: it reduces all owners’ annual expenses by $15,000 to $20,000 and makes the whole week pick process less contentious as these two weeks would always be the first weeks selected in draft. For the last 2 years, Vision Properties has actually emailed owners asking them what two weeks they wanted to pick for their use well in advance of the October draft (due to strong rental demand and bookings extending well in advance of 6 months) and so far have only had one week conflict (which the two conflicted owner’s got together on their own and worked out) thus ALL owner’s got their first pick.
If an owner wanted to use one of the Holiday weeks personally, an arrangement could be made to reimburse the rental fund for the lost income portion
Our position on the Placencia Peninsula is the ideal blend of being far enough out of village to be in an exclusive high end residential area, but close enough to go enjoy the many nearby places to eat, grocery stores, etc. The best restaurant as voted by the Belize Tourism Board is less than a mile from the Villas, as are two very nice resorts in either direction. So if the beach, diving, and fishing are not enough, Placencia provides great access to inland jungle activities that are amazing. Vision Properties would be happy to provide a very detailed activity/vendor list that is supplied to renters during their stay.
Little Harvest Caye is less than one mile from the Village. When arriving staff will pick you up at the airstrip and take you to meet the island’s boat in the village. Vision Properties is in the process of purchasing a tract of land that is adjacent to the airstrip. Once completed, visitors to the island will simply walk or take a short golf cart ride to the island’s boat at our airstrip dock. Staff will be available to take guests back and forth from Placencia upon request. Remember it is a very short distance and even in very rough seas or windy days guests will be able to use a lagoon-landing site in the village that is protected ensuring the short trip is smooth and safe. This is a unique high-end island home with all or certainly most of the features and comforts you would expect in a high-end home in the US. One big note here is the island is totally off-grid and self-sufficient with respect to power generation.
Vision Properties also has a new Mayan Beach Development. Built right on the beach, this is a brand new, contemporary residential development that encompasses. A New Dawn Beach House is located at mile 13.5 of the Placencia peninsula, 700 meters south of the Placencia Hotel and Residences, 10 miles north of the village of Placencia and two miles north of the nearest grocery store, small resorts, and several local restaurants and bars in Maya Beach. It is a 20-minute drive south to the village of Placencia
Vision Properties strongly encourages all prospective buyers visit the properties and Placencia. As part of the due diligence process between Vision and the prospective buyer, we will share relevant financial info, and more importantly, initiate communication with our current owners and the prospective buyer. Vision Properties highly encourages buyers to reach out to our owners – we believe it is the best “review” of our products and services!
We offer prospective buyers a discount of 50% off the published rental rate and, upon purchasing an ownership interest, any rental amounts paid would be applied to the down payment. Obviously, until this home is finished you would not be able to stay in it. However, we have other properties nearby that we have sold, etc. and would offer the same 50% discount on those properties as well
Yes, we will have detailed discussions either on the phone or in person with potential owners before purchasing an ownership interest. Basically, Vision Properties spends time speaking with prospective owners to gauge alignment of interests and ensuring the proper community fit with what we have and our owner culture. Since we have a really good group of owners and properties with very positive rental income, Vision properties can selectively add to their group of owners. Summary of current owners in Villa Tipsy Gecko house (some own more than 1 share) is below:
In Villa Tipsy and Groovy Gecko an owner in each home is now fielding rental inquiries/questions and doing leases. Vision Properties handles all the bookkeeping, management, and has an accountant in Belize who does the required tax filings, etc.
At the end of each year rentalincome is distributed equitably to each owner based on actual rental income and owners usage. Owners can also rent to friends, family business or whoever locally, which 100% of income is retained by the owner, but the owner is 100% liable for any damage by such renters. If you handle the rental yourself, your guests are still liable to pay 9% hotel tax before arrival as we have to register all guests and pay such tax to not risk issues with our hotel license and Belize Tourism Board.
While cash is always preferred we do offer financing. Terms of such financing are currently 50% down, with an interest rate of 7.5%, over a term of 5 years on a 20-year amortization.
Yes you can and when all shares sold we can use the current house websites for such purposes. We have had one owner in Villa Tipsy Gecko sell her shares to date. We also offer as an additional exit strategy, a trade in program if you want to build a full-time home in the future in Placencia.
All International flights currently fly into Belize City (BZE). A new international airport is under construction 6 miles north of the Villas, it is not complete and the completion date and availability of international flights are yet to be determined. Currently, both Southwest and Copa Airlines are opening direct flights to Southern Belize from a number of major airline hubs.
From BZE you can take a short 30-minute commuter flight on Maya Island or Tropic Air. We receive a 20% discount on Maya for booking and pass this discount along to prospective buyers. You can also take a shuttle or rent a car at BZE and drive down. The drive is about 3 hours on all paved roads, a good bit of which is through the Maya Mountains and pristine rain forest along the Hummingbird Highway.
You will own a share of a Belize company. Owners only pay income tax profits when / if money is expatriated back to the U.S. There is an IRS form that all U.S. Citizens must file as the owners of a foreign company. Further information can be provided after purchase. We are not familiar with Canada or other country reporting requirements.
In addition to the information provided in our previous Q&As, Vision Properties has a proven and established system that has achieved a high occupancy across the properties. With proven results for both our owners and highly rated reviews on sites such as VRBO, there is clear evidence that the current systems work well. Please take a few moments to review VRBO as a testament to Vision Properties success with renters.
Click Here to learn more!
Vision Office located in Belize
BZ 671-9802 Javier Duenas