Foxglove Hotel Devon

Foxglove Hotel Devon

An Example of the Investment Opportunity

Double/Twin Room
The Double/Twin room delivers £8,500 annual rental income for Years 1-10 with the first two years by deduction
£85,000 - Purchase Price
£68,000 - Cash input with 2 Years by deduction
By purchasing with two years by deduction, you are able to reduce your total capital outlay from £85,000 to £68,000 by offsetting your first two year’s rental income of £8,500 per year from the purchase price.
How the return is calculated:
Total Purchase Price £85,000 x 10% = £8,500 x 10 years from Year 1
= £85,000 total returns
Buy back option at year 10 based on the total purchase price of £85,000
= £106,250 (125%)
ROI = (Buy back £106,250 plus rental income £85,000 minus purchase
price £85,000) divided by purchase price £85,000 = 125%
ROI: Return on investment
Purchase price £85,000
Client cash input (with 2 years by deduction) £68,000
Reservation fee £500
Balance of cash input £67,500
Assured tenancy period 10 years
Income 10%
No. of years by deduction 2
No. of years on full purchase price 8
Year Rental Income (10%)
1 £8,500 by deduction
2 £8,500 by deduction
3 £8,500
4 £8,500
5 £8,500
6 £8,500
7 £8,500
8 £8,500
9 £8,500
10 £8,500
Total £85,000
Buy back at 125% £106,250
Total purchaser returns £85,000
Less purchase price £85,000
Cash received over and above purchase price £106,250
ROI: 125%

foxglove hotel devon

Foxglove Hotel Devon

Guaranteed 10% Rental Income for Ten Years

·         Defined Exit Strategy

·         Hands-Off Investment

foxglove hotel interior