• Insert your own values for any parameter in blue, and click "update".
• Click "reset" to restore original values.

Note 1. You will see that that the difference in value between the funds (net cost / benefit of ownership) varies with the number of weeks holiday you choose, and the number of years you keep going. The value of the "Owner's" fund is not affected by the amount of use you make, because you have to pay the running costs anyway. However the renter's fund does vary with usage, because money is only deducted to pay for the weeks actually used. The usual result is that if you don't actually want to take any vacations, it is NOT a good proposition. If you do, the more you use it the better off you are. This is of course just as you would expect - it's stupid to put a lot of capital into something which you don't then make use of. Typically you will find that it works out to be beneficial to own a share if you take a couple of weeks or more holiday a year on average. To illustrate this point we have set the initial value at only 3 weeks - a lot less than half your actual usage entitlement. This is to accommodate the fact that in some years, circumstances will probably prevent you using it as much as you might like. (Back to top)

Note 2. Property values and appreciation. Recent reports by two of the largest property agencies provide data against which the Villa Maricel Group proposal can be judged. For the Calvia region as whole, Kuhn Partners quote the following typical property values:

For Santa Ponsa, Engel & Volkers quote values as

Property Appreciation.  Kuhn Partners, quoting TINSA Real Estate Appraisals Ltd (one of the most prominent real estate appraisal companies in Spain) record values up by 225% between 1999-2006, equivalent to 12.28% compound over the period, and second hand homes increasing by +18% in 2006. Engel and Volkers give 2006 increases around Santa Ponsa of 10% to 20%. In the same period inflation (CPI) averaged 3.2%. On this basis of historical prices we have used the values of 3.2% for inflation and 9.0% for appreciation as the starting point for the calculator.   

Below is an extract from Engel & Volkers 2007 report.

"Mallorca Market Values"

The last five years have witnessed a property boom on the island. Recent research by UBS Bank indicates that average house prices in Spain have been steadily rising since 1995 achieving an average of €2,200 per m2 in 2006. In Mallorca this average is more likely to be double, if not more in some areas. Research by Banco España ranks the Balearic Islands region fifth in Spain for increases in property values, which in 2005/6 averaged a 12% increase and in 2006 prices continued to rise at the same rate.

Mallorca’s popular south west region is still highly fashionable and blessed with a mini eco-climate, which means excellent weather all year round even in winter when the Tramontana Mountains protects the area from northerly winds.

This region extends throughout the municipality of Calvia with its six resorts down to Puerto Andraitx where many rich and famous have magnificent villas. The region’s importance is reflected in the millions of euros, which has been spent by the local and national government in recent years to improve the road infrastructure to create fast access to Palma. These improvements have just been completed and will most certainly further impact prices in the region.

Prices have increased in the past 5 years, so has the average spend, which is now running at approximately €750,000 euros. The bigger spenders tend to be the Germans who spend an average of just under a million euros. The majority of demand is focused on apartments and villas with prices over last year running at an average of 10-15% and in some cases as high as 20%." 

You can read the latest reports from Kuhn Partners and Engel and Volkers in their entirety by clicking on the links. (Back to top)

Note 3. Maintenance costs These are expressed as a percentage of the asset value, and initially set at 2%. This is broadly what is forecast, and is equivalent to €700 per month, per member. Remember this includes all the operating costs of the group including the boat and car. The detailed budget which justifies this number is provided at the next stage of enquiry. You can change this value if you wish but only small changes are likely to be realistic. (Back to top)

Note 4. Inflation: average value over the period 1999 -2006. Source: CIA World Factbook. (Back to top)

Note 5. Rental rate. This is based on actual past rental values for Villa Maricel, plus researched values for rental of equivalent car and boat. (Back to top)  

Note 6. Rental of your "unused time". The full spreadsheet model can also examine the effect of renting the villa's unused time. Serious enquirers are welcome to examine this, but be aware that depending on what assumptions are made about high/low season rental and occupancy rates, it may have little impact on the results. The reason for this is explained in the detailed notes in the model. For this and other reasons it is improbable that this group will want commercial rentals to take place, and so you should not allow the idea of possible rentals to influence your decisions. Use by family and friends is a different matter of course.  (Back to top)

Note 7. Validation of the model. Obviously the detailed workings of this are not shown, we are happy to provide the full Excel spreadsheet to serious enquirers who wish to confirm its validity. We supply this information purely for information purposes. The OwnerGroups Company Limited gives no warranty or guarantee of any kind either implicit or explicit, regarding the use of this mathematical model. All users do so entirely at their own risk and OwnerGroups accepts no responsibility whatsoever for the consequences of any decision made by users whether based on its use or otherwise. (Back to top)