1) You will see that that the difference in value between the funds (net cost / benefit of ownership) varies with the  the number of years you keep going. Setting a very short period such as one or two years is not recommended simply because the arrangements are optimised for owners who plan to return over several years. (Back to top)

2) The difference in value between the funds (net cost / benefit of ownership) also varies with the number of weeks holiday you choose. 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 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 5 weeks - 15% less than 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)

4) Return on investment. For a valid comparison, select a realistic value for the net return (after inflation, management charges etc.) that you could reliably get on an investment which is as safe as you feel a top-quality Mallorca villa would be.  The full model allows you to take your tax situation into account as well. (Back to top) 

5) The assumed rental rate is based on achieved past rental values for Villa Maricel, plus researched values for rental of an equivalent car. (Back to top)  

6) The amount assumed for maintenance is based on current budget of 500 euros per month, and an equal amount is placed in the "investor's fund".  Remember this includes all the operating costs of the group including the car. The detailed budget which justifies this number is provided at the next stage of enquiry. (Back to top)

7) 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 will probably 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 unlikely 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)

8) 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.