HOLIDAY HOMES / TIME SHARE APARTMENTS BUSINESS IN UGANDA

 HOLIDAY HOMES / TIME SHARE APARTMENTS BUSINESS IN UGANDA

Introduction

This business idea is for constructing holiday homes/time share apartments. A holiday home apartment is a property with a particular form of ownership or use of rights. These kinds of apartments are for middle class families who want to reduce on their costs when they go for vacations.

The apartments are normally paid for weekly or monthly and for that period one owns the apartment for the rest of his/ her life.

The investor will help members of the apartments to form a home owners association which will collect the annual maintenance fees.

The project is expected to be completed in 6 years. Revenue will be obtained starting from the 3rd year and profits will be accrued from the 4th year.

The apartments will be sold to 52 persons per week throughout the years. There will be marketing of the properties via estate agents. The market will be sought on the start of phase 1 such that by the time you finish construction of phase 1, you would have sold ½ of the block. The building project is expected to be completed within 72 months. All members will be advised to book in time such that they don’t collide. Members shall pay US $1000 as annual maintenance fee and US$200to join time share exchange club.

Some materials and equipments can be got in Uganda while others are imported.

Scale of Investment

Capital cost projections in US Dollars($) 000

ITEM Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total
Land 120 120
Landscaping 8 8
Architect 100 100
Planning 8 8
Buildings 0 780 780 780 780 0 0 3,120
Wall fence 100 250 50 400
Pool & Gym 200 50 100 350
Commission 0 0 32 62 62 73 21 251
Staff 0 25 84 84 84 25 0 302
website 5 0 0 2 0 0 7
Promotion 0 90 90 90 90 90 30 480
Interest 0 0 300 300 300 0 0 900
Total 236 1,000 1,736 1,416 1,418 188 51 6,046

Project Product Costs and Price Structures in US$

Sales 0 0 1,560 3,120 3,120 3,640 1,040 12,480
Total 236 1,000 1,736 1,416 1,418 188 51 6,046
Profit -236 -1,000 -176 1,704 1,702 3,452 989 6,435

Sales of Apartment

Year 1 2 3 4 5 6 7
Apartments 0 0 3 6 6 7 2 24
Number of weeks 52 52 52 52 52 260

Market analysis and opportunities

The market for holiday homes/ time share apartments is high since this kind of business doesn’t exist yet in Uganda. Due to the growth of the tourism sector in Uganda, there is need to exploit such an opportunity. The revenue is determined by the level of tourists and middle class families who need to cut on the costs incurred when living in hotels.

 

Risk:

Inability to access foreign buyers for the time share properties which can also be solved through proper marketing.

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