Pro Forma financial comparison chart
Fractional Ownership vs. Full Ownership vs. Timeshare
Fractional Ownership provides a unique option to regular Kauai vacationers. Equity in a vacation property is ideal for vacationers who generally stay in hotels or vacation rentals. Fractional owners enjoy added economical advantage over full ownership of a Kauai vacation home.
| Initial Investment Costs: |
60-day Fractional Ownership |
Full Ownership of a Vacation Home |
8 weeks of Rent at a Vacation Condo |
8 Weeks of Time Share | |
Purchase Price | $195,000 | $800,000 | VARIES | $320,000 | |
Down Payment (25%) | $48,750 | $200,000 | N/A | $80,000 | |
Financing (75%) | $146,250 | $600,000 | N/A | $240,000 | |
Furniture | Included | $100,000 | N/A | N/A | |
Financed Investment Costs | $146,250 | $600,000 | N/A | $240,000 | |
Cash Investment Costs | $48,750 | $200,000 | N/A | $80,000 |
Annual Costs: | |
Rental Cost (based on $400/night) | N/A | N/A | $22,400 | N/A | |
Annual Mortgage Payment1 | $13,176 | $47,902 | N/A | $27,940 | |
HOA Costs/Property Management | $3,600 | $21,600 | N/A | $12,000 |
Opportunity Cost
(cash investment)2
(cash down payment) | $2,438 | $10,000 | N/A | $4,000 | |
Total Annual Cost | $19,214 | $79,502 | $22,400 | $43,940 | |
Less Annual Equity Appreciation3 | $7,215 | $29,600 | N/A | N/A | |
Net Annual Cost | $11,999 | $49,902 | $22,400 | $43,940 | | | |
Real Estate Equity | YES | YES | NO | 50% DEVALUATION | |
Appreciation Potential | YES | YES | NO | UNLIKEY | |
Overall Maintenance (varies) | YES (actual services vary) | NO | MAYBE | YES | |
Maintenance/Repair Responsibility | NO | YES | NO | NO
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1 Based on 15 years at 8.25% f -Time Share purchase; 30 year 8.25% mortgage - Fractional; 30 year 7.0% mortgage - full ownership
2 Opportunity Cost equals the cash investment costs invested at a 5% annual return
3 Based on assumption of 20% increase in value over five years or 3.7% per year
NOTE: PRO FORMA EXAMPLE ONLY. ACTUAL FIGURES WILL VARY. CONSULT YOUR TAX ADVISOR.
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