Your investment at The Village at Aqua earns you an attractive income as part of the Aqua Spa and Resort Rental Program.
Income
Nicaragua is destined to become a premier destination in the Americas. It is not unreasonable to think that the country could soon be experiencing the same tourist demand as in neighboring Costa Rica. Rents for similar properties are going for $1000, $1100, and even more for one week.
Renting for even a portion of the year could earn you thousands of dollars in income!
A management fee of 50% of your house’s rental income covers guest support services, marketing, reservations, billing and other administrative tasks required to assure that owners receive all of the financial benefits of Nicaragua’s new tourism Law 306.
Marketing
The southern Pacific coast region where your villa is located is destined to become a premier international destination. The leading developers of the area are working in concert with national marketing and lobbying consultants to create a “Pacific Riviera.” Our development is a member of the Tola Developers’ Association and all owners will benefit from their strong presence in both the local as well as international marketplace. In addition, The Village at Aqua Management in association with Aqua Spa and Resort, will market Home rentals on the company web site together with direct marketing from our locations in Managua and at Arenas Bay, Tola. Promotional events, advertising and industry trade shows will feature The Village at Aqua rentals information and draw additional vacationers to this spectacular location. In addition, we will sponsor events and promotions with affiliated hotels and resorts throughout Nicaragua and Costa Rica.
The demand for rentals will increase steadily as the availability of oceanfront in this growth region disappears. Business class hotel rooms in Managua are now over $200 per night, Granada is over $100 and luxury oceanfront homes average $250 or more. During high season there is currently little or no availability. With The Aqua Spa and Resort scheduled for operations in 2008, your home is likely to be in extremely high demand.
So relax, enjoy your home and the beauty of the beaches whenever you like, and let The Village at Aqua Spa and Resort Rental Program help pay you to stay.
Your investment is paid back in less than half the time you would need to pay off a conventional 30-year mortgage.
Let your rental income pay off your investment. The Nicaragua government has implemented new laws that are designed to promote and dramatically increase the number of tourists to the country. One of these laws, Law 306, allows for a ten-year tax amnesty on income. This allows your home rental income to work 100% in paying off your investment.
Your home can be paid off in less than ten years!
Assuming a yearly tax-free income, after management fees, of at least $15,000 and a preconstruction purchase price starting at $199,900, you and your family can enjoy your home for the rest of you life and own it for NET ZERO in less than ten years.
Your investment keeps earning income as well as significant capital appreciation. We anticipate rents, in response to increased demand, will increase over time. If you choose to keep your villa in the Rental Program after the Law 306 prerequisite ten years, in the next 20 years your villa could possibly earn you $15,000, $16,000 or more per year!
Over a 20-year period this could be over $300,000!
The capital appreciation for your home could be 100 to 125 percent in just five years. Prices for real estate in Nicaragua have almost doubled every 18 months for the last three years. And opportunities to acquire oceanfront have all but disappeared.
Your villa could more than double in value in five years.
Regardless of your intentions, the spectacular
natural beauty of The Village at Aqua will continue to inspire
every time you come. So, whether for personal use and
leisure, or simply as an investment, this is your
opportunity to acquire ocean and spa resort real estate
for a fraction of what you would pay in neighboring
countries. The Wall Street Journal, LA Times,
International Living, New York Time, GQ Magazine, all
have described Nicaragua as one of the last great
opportunities in the northern hemisphere.
Questions and Answers
1. Q: What are the advantages of rental income under law 306?
A: The rental income you receive is free of Nicaraguan tax for 10 years. All materials, services and supplies purchased for the resort property are also free of import and excise taxes. The Village at Aqua Home Owners Association and its association with The Village at Aqua Management Company have been carefully planned and incorporated in order to take full advantage of the Law 306 provisions. Our management service assures that we are fully compliant with all Nicaraguan laws and regulation.
2. Q: What are the owners' requirements under law 306?
A: Your house must be kept in the rental pool for 70 percent of the year (256 days). You are free to use your unit for the remaining time (up to 109 days). You must remain in the Resort Rental Program for ten years. Ownership obligations are transferable to new owners in case of the sale of your unit.
3. Q: What is your commission rate?
A: The rental management fee will be established at 50 percent of net room revenues.
4. Q: Other management companies charge as little as 25 – 30%. is 50% high?
A: In the marketplace there are generally two types of rental management companies. The first are small, stand-alone businesses and are often attached to some type of real estate sales office. While these operations may only charge 25 – 30 percent as a management fee, they generally have no assets/amenities and provide little in the way of services or marketing. The second model, which The Village at Aqua Rentals falls into, is typified by other projects such as Sea Pines on Hilton Head, South Seas Plantation on Captiva, Amelia Island Plantation, Kiawah and Wild Dunes. These projects operate as comprehensive destination resorts and compete in the marketplace with freestanding hotels, usually in the four-star, four-diamond category and provide a full compliment of sales and marketing personnel focused on reaching out to the marketplace and generating occupancy for the units. Management fees for this structure range from 50-60 percent.
5. Q: How will you set the rental rates?
A: Rental rates will be set by shopping our competition both regionally and internationally and setting the rates so as to remain competitive. The overall interior condition of your unit, the quantity, quality and types of amenities you place in your unit (such as furnishings, televisions, stereos, washer/dryer, etc.) also will determine the rental fee charged for your unit.
6. Q: When do you plan to begin taking rentals?
A: Realizing that a number of owners will desire income as soon after closing as possible, we will be ready to begin rental operations as soon as The Village at Aqua Management determines that the resort facilities can support guest traffic in a comfortable and safe manner. To be placed in the rental pool, the residence must have closed, been furnished and a Rental Agreement executed.
7. Q: How do you plan to open while the amenities (Restaurant, spa complex, etc.) are still under construction?
A: After we determine how many owners are interested in early rentals (by executing a Rental Agreement) we will launch a program similar to opening a small boutique resort. This program will obviously be more limited in scope of services provided than when we officially open the project.
8. Q: Do I need to be a member of The Village at Aqua Home Owners Association in order to have my property in the program?
A: All home owners are members of The Village at Aqua Home Owners Association, which has been organized under the tourism Law 306. In order for the association to take advantage of the law’s tax incentives, all owners must participate in the Village at Aqua Resort Rental Program and have their unit available for listing 70 percent of the year. To have your property available for rental, all HOA fees must be paid to date, the property must be in satisfactory condition for rental, and an executed Rental Agreement must be on file with the management office.
9. Q: Can you provide owners with rate and occupancy projections for the property they are considering?
A: Unless a condominium, second home or vacation property is registered as a security, it is against regulation to provide any future projections related to rates and occupancy. In order to become comfortable with what one might expect, looking to the historical performance of mature, competitive properties operating in the marketplace with similar property types is a way to gauge expectations.
10. Q: Can an owner book their own reservations?
A: Yes. In fact, there will be a referral program set up that will pay a referral fee to owners.
11. Q: How will you ensure that my property is being well maintained?
A: The Village at Aqua Management offers the finest in professional rental management services whose principals have had years of experience developing and managing residential properties in Nicaragua. Our ongoing management provides assurance that everything is done with an eye to quality and longevity.
12. Q: What are the requirements concerning the furnishing of my property?
A: For a unit to be placed in the Resort Rental Program, it is necessary that the furnishings and housewares meet standards of quality and quantity. This helps assure that our rental properties will meet guests’ expectations and enhance the reputation of The Village at Aqua. This further improves our long-term rental potential. To assist owners in meeting these requirements we offer professional design services coupled with a team of craftspeople and artisans who can create and install furniture “packages” providing extraordinary value to the owners.
13. Q: Will rental guests staying at my property be able to access the various resort amenities?
A: Yes. Guests have access to the same amenities, activities, and specials as the owner. Certain specialty spa services are available at an additional charge.
14. Q: Will the resort rental program still be available after the 10 year Law 306 period ends
A: Yes. The Village at Aqua Rental Program will continue to provide services to owners. At this point, all incentives, as well as restrictions, with regards to Law 306 are removed. You are free to either use or rent your villa for whatever time you desire. Should you choose to rent your villa, income taxes may need to be paid. You should consult with your accountant and tax attorney for guidance concerning your particular requirements.