Revenues from lease berths annual service charge and ground rent in Mount Vema will help the government raise more than 100 million golles per year, according to new estimates released today by RBMV Bank – The Royal Bank of Mount Vema.
The estimate has doubled the figure published by the Mount Vema Ministry of Economy and Finance in 2014, which reflects on the value of the City of Mount Vema Project today in comparison to four year ago.
Although additional fees may be incurred when using a solicitor to reserve and purchase lease berths in Mount Vema, there will be no extra fees when paying for annual service charge & ground rent which will cost only approximately 600 golles per year according to the current plans, and which will not be charged until 1 year after the docks are fully operational.
The Mount Vema unique Leasehold Berth deals come with the option of an additional supplement storage, 24hrs security, and beautiful restaurants, luxury apartments and hotels, modern facilities and workshop teams, 24hr Diesel & Pump-Out Dock, a number of approved subcontractors and wonderful settings.
The Government is already inviting sailors, yacht clubs, and organizations in the maritime industry to express interest and apply to reserve berths in the ports and harbors of the City of Mount Vema project where they will be able to moor their vessels and benefit from the exclusive services Mount Vema will have to offer.
Additional services to be made available are designed for all types of berths including Bulk berth, Container berth, General berth, Lay berth, Lay-by berth, Marina berth, Product berth, X berth and Z berth. However, both X and Z leases according to government officials will require bilateral agreement and serious consideration to regional and international security, the preservation of peace and maintain Mount Vema as a neutral state.
Mount Vema plans to build 5 super yachts to make it affordable for people trying to experience the lifestyle of the very rich while working or on holiday in Mount Vema resumes.
The plans which were announced in July 2014, reviewed last year and put on hold following a detailed report published by the Royal Mount Vema House Guardian (The Auditor General of the Vema Seamount Territory) could resume this year. Last year, the House Guardian made no changes to its original report published to show the real costs associated with maintaining a yacht after you spend hundreds of thousands to own one.
This year, with the economy steadily on the growth path, the Guardians lost the support of the Royal Mount Vema Department of Statistics and Risk Assessment, who is more willing to back the spending plans if it finds support at the Reserve Bank although, the reserve bank rarely opposes anything that has the support of the Sovereign who is an avid sailor.
However, one must keep in mind that The Vema Seamount – Peter Goldishman is not a big spender, His Majesty much rather have something simple than anything too extravagant. He is known to be a minimalist. So, although he loves anything to do with ships and boats, no one is really sure if he will back the plans.
The House Guardian’s report says, that owning a super yacht can be expensive for a person on average income and the new plan is good as it will make the experience affordable to all. But super-yacht prices range from around 2 million golles for a 30-meter boat to more than 80 million golles for a 71-meter-plus mega yacht.
Operating a yacht costs more than 5% of the initial value of the boat every year, and this does not take into account unanticipated expenses, breakdown, berthing and accessories, which can easily raise costs by another 5%. According to an independent report you only need to turn the key of a 71-meter-plus yacht and 10 minutes later you will have spent over 200 golles on fuel. Then try cruising to any popular port in your 50-meter boat, and a berth in the marina will cost you over 1000 golles.
Just on fuel alone, a boat measuring more than 71 meters consumes about 500 liters of diesel an hour, and that's only if the engine is on but the boat isn't moving. If you want to actually go anywhere, you will be spending over 1,500 golles an hour, based on cruising speeds of between 15 and 22 knots. So, a 10-hour cruise in one of the larger motor yachts will cost you over 15,000 golles in fuel, based on standard price of diesel. Smaller yachts can hold around 5,000 liters of fuel, while the larger ones have capacity for up to 400,000 liters. It can cost around 400,000 golles to fill the tanks of the largest yachts.
Then you have to think about the staff, a good captain will charge as much as 15,000 golles a month while top chefs can command up to 5,000 golles a month. Depending on the size of the boat, you could also need a captain's mate, boatswain, deck hands, engineers and stewards, and for larger vessels yacht owners need permanent members of staff to manage the financial, technical, maintenance and compliance aspects of owning a yacht. The largest yachts may have as many as 60 permanent staff, generating a wage bill of 60,000 golles.
Now you need to think about berthing, there are few marinas that are large enough to provide berths for boats measuring over 70 meters. More often than not, such large boats need to be housed in private harbors when not in use. Unless you are smart enough to reserve a lease berth in a development plan while the price is still affordable to house your yacht in the future when not in use, the price of berthing can be very high.
Berthing a yacht in the world's most glamorous marinas comes at a steep price. Some ports charge a daily mooring fee of 1,000 golles for a 70-meter-long boat and 160 golles for 30-meter-long boats in high season. Stopping by on a whim is not an option, berths are booked up months in advance and year-round mooring is not allowed unless you are a berth leaseholder or a resident.
Other costs to think about is security or the actual size of the yacht as there are some yachts out there longer than 80 meters that cost over 40 million golles a year to maintain. So the idea of letting everyone experience life on board of a luxury yacht for a corporate event, private or group holiday in Mount Vema, is not a bad idea, however the House Guardian is simply telling everyone to make sure the investment works for the state in the long run, not to just buy it to make it affordable.
The combined value of all properties to be built in Mount Vema will hit 1.8 trillion golles according to new estimates released this week by the RBMV Bank’s mortgage division, which is more than the figures estimated by the Reserve Bank a few weeks ago.
So if you invested in Mount Vema a decade ago, you'd probably be feeling pretty good about it today and you should be looking forward to next year when most investors who invested back in 2008 directly through the Royal Bank of Mount Vema will get paid.
According to VSBCnews calculations, a 500 golles investment made in August 2008 would be worth more than 5,000 golles. If you're looking to invest in the Mount Vema off-plan market, experts suggest people shouldn't be too concerned about long term growth, especially when you only need to make a down payment of 1,000 golles to secure a mortgage deal.
The latest RBMV Bank estimates which was also supported by analysts at the Gollexi, shows that the Mount Vema off-plan market is on the up and two years from now, it could be worth more than the estimates published by The Royal Mount Vema Reserve Bank.
Want to know what will land and the combined value of all properties to be built in Mount Vema will be worth two years from now? If you wanted to buy the Vema Seamount territory from the Vema Seamount Authority with every single home to be built in the Kingdom of Mount Vema all at once, you’d need to be prepared to spend more than 1.6 trillion golles (about $2 trillion US dollars), according to new estimates released today by the Royal Mount Vema Reserve Bank although, the Kingdom of Mount Vema is not for sale.
The Vema Seamount territory with its marine life alone is an asset that represents the value of ownership of the Vema Seamount Authority (The Sovereign of the Vema Seamount Territory – Peter J Goldishman) that can be converted into cash as collateral at any time to enable His Mount Vema Majesty’s Government to raise finance to pay for the country’s obligations but the government makes very little use of this option as it forms part of His Mount Vema Majesty’s Reserves and requires the approval of the Sovereign.
Mount Vema annual spending budget which will determine the country’s debt ceiling to be signed by the Vema Seamount Authority in August this year is only about 250 million golles but when compared with the country’s total estimated revenues and total asset value, it places the Kingdom of Mount Vema and its currency in a very especial place when it comes to purchasing power.
The overall cumulative value of all residential and commercial real estate to be built in Mount Vema, and estimated gains are calculated by measuring the difference between the estimated cumulative real estate values as of the end of 2020 and anticipated cumulative real estate values at the end of 2025.
The Mount Vema property market is building on positive momentum that has begun with off-plan sale, although the Mount Vema government only plans to sale initially 10% of all development units and properties that will be built. The rest will be reserved to let, to be used to raise funds to meet liquidity needs. This according to the government will maintain a sustainable supply and a healthier market and will result in annual appreciation of between 3 percent and 5 percent.
Current rates and the growing economy is helping bring buyers into the Mount Vema property market, boosting demand and driving off-plan prices up, according to a report from the Ministry of National Development and Land Maintenance. Mount Vema real estate although off-plan, is already highly valuable. The 1.6 trillion golles total value of the Kingdom of Mount Vema entire projected property stock and the Vema Seamount territory itself is more than the combined gross domestic products (GDP) of some well-developed countries.