Real World Investing Returns in Secret Beach

This is an example of a deal very similar to other deals we have invested in at Secret Beach.

To calculate the returns on a land investment in Secret Beach, Belize, let’s consider the given scenario: an initial investment of $30,000 in land purchased at 30% below market value, with an average annual appreciation of 10%. Here’s the breakdown:

1. Initial Investment: $30,000.
2. Below Market Purchase: Buying at 30% below market value means the actual market value of the land at the time of purchase is about $42,857. This is calculated as $30,000 / (1 – 0.30).
3. Annual Appreciation: The land appreciates at an average rate of 10% per year.

Now, let’s calculate the value of the investment over 10 years:

• Year 1:
  • Initial Value: $42,857
  • Appreciation (10%): $4,285.70
  • End of Year Value: $42,857 + $4,285.70 = $47,142.70
• Year 2:
  • Start Value: $47,142.70
  • Appreciation (10%): $4,714.27
  • End of Year Value: $47,142.70 + $4,714.27 = $51,856.97

This process is repeated for each subsequent year. For simplicity, let’s jump to the calculation at the end of 10 years:

• Year 10:
  • Start Value: Calculated from previous year
  • Appreciation (10%): Calculated as 10% of the start value
  • End of Year Value: Start value + Appreciation

The formula to calculate the future value of the investment after 10 years, accounting for compound interest (in this case, compound appreciation), is:

Future Value=Present Value×(1+rate of appreciation)number of yearsFuture Value=Present Value×(1+rate of appreciation)number of years

Substituting the values:

Future Value=$42,857×(1+0.10)10Future Value=$42,857×(1+0.10)10

Future Value=$42,857×(1.10)10Future Value=$42,857×(1.10)10

Future Value≈$42,857×2.59374Future Value≈$42,857×2.59374

Future Value≈$111,161.29Future Value≈$111,161.29

So, after 10 years, the initial investment of $30,000, in land initially valued at $42,857, would be worth approximately $111,161.29, reflecting the power of land appreciation in an area like Secret Beach. This demonstrates a significant return on the initial investment, highlighting the potential profitability of land banking in this region.

What are you doing to ensure high returns on your investments? Offshore land in the path of progress at Secret Beach is a great option.