About Caicos Beach Club

Turks and Caicos Islands:
A)    Approximately 500 Miles South, South East of Miami, Fl.
B)  British Commonwealth Nation

Same as Cayman and Bermuda Unlike Cayman and Bermuda, the US Dollar is the local currency National Language is English. Annual Climate is between 77 Degrees F in Winter and 84 Degrees F in Summer

Off-Shore Financial Center
No direct taxation in the Turks and Caicos Islands
No corporate income tax
No personal income tax
No estate or inheritance tax
No annual real estate tax

C)    Within 3 Hours travel time of 300 Million People

2) The Island of South Caicos

A)    Airport:

US Government put the Runway in, 7,000 Feet Long
Capable of landing 737, 727, DC9, MD 80
New A/C Terminal Building going in
Currently American Airlines, Delta, US Air, Northwest, Air Canada, British Airways, Bahamas Air, Air Jamaica and Charters arrive into the Turks and Caicos Islands (Providenciales)
Arriving from:
Miami, Fort Lauderdale, New York, Boston, Chicago, Charlotte, Atlanta, Toronto, London, Nassau, Montego Bay, Puerto Plata

B)    Cable and Wireless provides telephone, cellular phone and high speed Internet access
C)    Cable Television
D)    Deepest Water Port in the Turks and Caicos Islands
E)     Air Cargo Planes

3)      Company Background

Developers have 40 years experience in the following:

Planning and Architectural Design, General Contractor and Development, Marketing, Sales, Lead Generation, Accounting, Travel Agency/Reservations/Lodger Procurement, Management/Maintenance, Computer Servicing, Financial

4)   Caicos Beach Club Resort and Marina:

A) Approximately 185 Acres on a Peninsula
Elevation 0 to 165 Feet above Sea Level and back down
Traverse the Peninsula
360 Degree view, 7 different colors of water
One Mile of Beach Front/White Powder Sand
Sunrise, Sunset from the same piece of property
Approximately 4 Miles from the International Airport
Developer has invested to date approximately $70,000,000 free and clear in the Development
There is no Debt Service on this Development

B)    Phase 1A is 295 Ocean/Sunrise View One Bedroom Units:

The Units are turnkey with all Furniture, Kitchen Pacs and Linens
Pre-cast, Pre-stress concrete construction including the roof
70,000 Sq. Ft. Clubhouse Building up and roofed
50,000 Sq. Ft. Maintenance/Housekeeping Building up and roofed
100,000 Gallons per day Reverse Osmosis Water Plant on-site
One Million gallons of potable water storage in the ground
Resort Residence Buildings are under construction, Three Buildings are up and roofed, the Fourth is under construction.
Phase 1A is approximately 95% Sold Out
Amenities:
Swimming Pools, Hot Tubs, Pool-side Bar and Grill, Restaurants, Lounge and Entertainment, Duty Free Shopping, All Units Internet Wired, Charter Deep Sea Fishing, Bone Fishing Charters, Full Scuba Diving and Snorkeling Facility including Lessons, Trips and Rental Equipment, Sailing, Para-sailing, Gaming/Casino, Tennis Courts, Health Club and Spa Facility, Convention Facility, General Store, Out Island Tours and Sunset Cruises

C)    Phase 1B will consist of 300 Ocean/Sunrise or Sound/Sunset View One Bedroom Units encompassing all of the above referenced amenities (will be sold as whole ownership and fractionals).

5)  The Investment with a Free Vacation:

A)    Under Construction Pricing/40% to 50% below T&C average price

B)    Annual Income plus appreciation

Instant appreciation 40% to 50%
Lodging Income (see investment proforma)
Annual appreciation, 10% to 20% per year over the last 10 years, statistics from T&C Gov.
The Unit requires only 26 nights of rental per Year at 35% below the current annual rental rate in the Turks and Caicos Islands, not the Seasonal rate which is much higher to cover the annual expenses of the Unit (maintenance fee, use fee and management fee).

C)  Condo/Hotel Unit Purchase:

Purchase of an Ocean View One Bedroom Resort Residence
The Resort Residence can be used for personal use or placed in a Lodging Program.

Personal Use:
As the Owner of the Resort Residence you may use your Resort Residence at any time. There is a monthly maintenance fee and a use fee when occupied.

Lodging Program:
The Resort Residence may be placed in a Lodging program after closing.  This program is offered by a separate company that has a management contract.

In addition to the receipt of net Lodging proceeds, as a member of the Lodging Program, Resort Residence Owners shall receive Two (2) Free Bonus Weeks of usage per year in the Resort Residence type purchased. Neither Maintenance Fees nor Use Fees shall be due from the Owner when utilizing his Two (2) Free Bonus Weeks of usage per year. While the Owner is vacationing, their Resort Residence is in the lodging program earning revenue.  In the event the Owner desires to stay in a larger Resort Residence during the Two (2) Free Bonus Weeks, the Owner shall pay the difference between the posted rack rate of the larger Resort Residence and the Resort Residence owned.

In addition, the Resort Residence Owner may at any time call within 14 days of when they would like to vacation and if the Resort is less than 70% occupied, the Resort Residence Owner may reserve any size Unit available with the only charge being a housekeeping fee and a nominal administrative fee.

In addition to the receipt of net lodging proceeds, a Resort Residence Owner desiring to stay additional time during the year shall pay Fifty (50%) of the posted rack rate of the Resort Residence size reserved while earning revenue from the lodging program at the same time.

D) The maintenance fee, the use fee and the management fee:

The maintenance fee of $300US per month covers the fixed expenses such as insurance, electric for common areas, etc.
The use fee covers variable expenses such as daily maid service, linens, laundry service, additional electric, water, fungibles, etc.
The management fee covers the management cost associated with operating the Resort and Rental of the Resort Units

E)  Equity Club Membership entitles the Owner to the following:

2 Free Weeks of Vacation per year per Resort Residence owned and place in the lodging program
Additional Vacation Time
20% Discounts on everything at the Resort excluding Gaming and Duty Free Shopping

F) Ninety- Nine Year Lease Ownership

Please note the following advantages to owning a Ninety-Nine Year Lease as opposed to Fee Simple Title:

The Developer is marketing the Resort Residences at 40% to 50% below current Market Value in The Turks and Caicos Islands

The Real Estate Transfer Tax in the Turks and Caicos Island is currently 9.75%.  The Developer has negotiated the Transfer Tax from 9.75% down to 3% on the transfer of the Ninety-Nine Year Lease.  For Example, The average price for a One Bedroom Ocean View Resort Residence is $500,000.00US+ as opposed to the current price at Caicos Beach Club of $289,000.00US.  The transfer tax on the $500,000.00US purchase price would be $48,750.00US paid to the Turks and Caicos Island Government at closing as opposed to the transfer tax on a Caicos Beach Club Unit of $8,670.00US or an out of pocket savings at closing of $40,080.00US.

This Resort Residence is not an individual’s primary residence but is, in fact, an investment property.  The average term of ownership in investment properties is between Five to Ten years.  Why then, would someone want to pay an additional $40,080.00US at closing to own a property between 5 to 10 Years.

In addition, if someone were to purchase Fee Simple Title they would not fall under the Developer’s Development Agreement with the Crown, which we call an “umbrella of rights”.  A few examples of rights that would be lost are as follows:

The Purchaser would have to pay duty of 35% on the furniture in their Unit
The Purchaser would pay the higher Transfer Tax illustrated above
The Purchaser would pay Higher Individual Insurance Rates

The Purchaser would have to pay the Resort Residence operating expenses separately and on their own, as opposed to the expenses paid out of the lodging proceeds. Not only would an Owner have to pay the bills on their own, they would pay the bills at a higher rate both by economies of scale (i.e.: the more people that pay the same bill in the lodging program lowers the cost per person) but the rate at which items are charged will be higher, i.e.: an electric

bill paid for a Unit owned under a 99 year Lease is paid at the discounted Developer Electric Rate negotiated in the Development Agreement which is much lower than the regular electric rate charged.

The Developer has the right to import unlimited foreign labor to keep costs down which labor can only be used to operate and maintain the Resort Residences operating under the Development Agreement.

Although there are currently no annual real estate taxes in the Turks and Caicos Islands, one never knows if this may change in the future.  In the Development Agreement if any taxes whatsoever are ever imposed, the Developer has a 25 Year exemption from these taxes which term commences to run from the Completion of Phase I.  By way of example, at the current real estate tax rate in the State of Florida, on a $500,000.00US property value, the annual real estate taxes would be approximately $10,000.00US.

These are just a few examples of why someone would want a Ninety-Nine Year Lease and the protection of the Developers Development Agreement as opposed to receiving Fee Simple Title, which does not carry these rights.  In addition, every time a cost is increased the annual return on investment decreases.

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