If you’re not getting info updates about the Sugar Loaf development, this may be of interest. Below is what I guess is a PR release of sorts.
The message about prices makes sense to some degree. With the price changes, clearly the project is in the Luxury category (homes, property, real estate, estates) for Piriapolis. The larger units will sell for over $500,000 with upgrades.
What’s a little hard to buy is the Fractional Ownership stuff. So why would I do this? Don’t get me wrong; I’m rooting for Sugar Loaf to be a success. The plan is nifty, the designs are cool and the location is excellent. But this Fractional Ownership thing is pretty much re-fried time share.
Here’s the release:
“For the past couple of weeks we have been building the streets in Phase One, so that the trucks with the building materials to build the first homes can climb the hill. It is will take about 3 more weeks for the streets to be completed, but they are ready for truck traffic now. The contractor would have begun building the first group of homes on Monday, except it has been raining the last few days, so we are delayed until we get a couple of sunny days. Literally construction of homes will begin any day now.
As you may have noticed on the website, we have had a significant price increase. This was due to several factors, and is happening in every development in Uruguay. As is the case in all developments in Uruguay we are priced in dollars. Unfortunately, most of the building materials and contractors get paid in Uruguayan pesos. When we set our pricing over a year ago, the dollar was 24 to 1, now it is 18.75 to one. That combined with the general increase of construction materials, like steel, plus inflation has increased our construction costs by about 45%. We had no choice but to compensate for that by increasing prices. Please check the website for updated price list.
To make up for the price increase and still have a good beginning price point, I have started a new program in Sugar Loaf, which happens to be very fashionable in real estates sales today, Fractional Ownership. Fractional Ownership is the shared ownership in a villa with other partner owners. It is not a time share. In a time share you own fractions of time. In Fractional Ownership you own real property or fractions of a home. We are about to start promoting this through International Living on July 29th. I expect it to do well, because it is a very good price point, US$59,900 for a 1/6 share including the villa, furniture, appliances, and a private pool. This is attractive for buyers who cannot live in Uruguay year round.”
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Stay Tuned!
Steve Bowman
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