Norway-Florida Fund Assumptions Page
This is the assumption set used to prepare the Norway-Florida Fund Analysis
| Investment Assumptions | ||
| Price of Property | $915,000 | |
| Closing Costs | 2% of Property Price | |
| Date of Acquisition | 1 June 2010 | |
| Holding Period | 7 Years | |
| Inflation Rate | 1% per Year | |
| Sale Price Method | Sale Price = $2,000,545 | |
| Selling Costs | 8% | |
| Investor’s Assumptions | ||
| General Vacancy & Credit Loss |
Zero | |
| Tax Rate – First Year | 35% | |
| Tax Rate – Following Years |
35% | |
| Capital Gain Rate | 15% | |
| Cost Recovery Recapture Rate |
25% – Losses Carried Forward |
|
| Present Value Discount Rate Before Debt |
12% per Year | |
| Present Value Discount Rate Before Tax |
12% per Year | |
| Present Value Discount Rate After Tax |
12% per Year | |
| Depreciation Assumptions | ||
| Depreciable Amount | 85% of Property Price | |
| Depreciable Life | 27.5 Years | |
| Depreciation Method | Straight Line | |
| Depreciation Start Date | at Acquisition | |
| Loan Assumptions | ||
| Loan Amount | 50% of Property Price | |
| Loan Interest Rate | 7% Annually | |
| Original Loan Period | 30 Years | |
| Loan Origination Date | at Acquisition | |
| Loan Type | Monthly Payments, Interest Only |
|
| Revenue Assumptions | ||
| Annual Revenue (1 Units @ $8,400.00/Unit/Month) |
$100,800.00 | |
| Revenue Start Date | 1 September 2010 | |
| Revenue Period | Until Projected Sale | |
| Revenue Growth Method | Annual at the Inflation Rate |
|
| Management Fee | 11% | |
| Vacancy Factor | 8% | |
| All Non-Management Expenses Expense as % of EI Assumptions | ||
| Expense Percentage | 40% of Effective Income | |
| Expense Start Date | at Acquisition | |
| Expense Period | Until Projected Sale | |
| Risk Analysis | Proforma Income Statement | Assumptions Page |
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