Argentina: Fractional Vineyards Make Wine and Cents
10 Acre Malbec Vineyard with 2 bedroom 2 bath Casita Fractional Ownerships USD $12,000 Per Unit
How many of us have dreamed of owning a vineyard, leisurely walking among our very own vines, picking grapes at harvest time and watching them magically turned into a delicate and delicious wine?
Pondering the possibility of owning a vineyard is a dream universally shared by millions of people around the globe and has been for thousands of years. But as we well know reality often smothers the flames of fantasy and the price for that “dream” can soar beyond the reach of our pocketbook and outside of our comfort area of what we consider “prudent investments” for our hard earned dollars.
Fractional Ownerships have become very popular and understandably a viable alternative. Knowing that one will not be using a home/condo 52 weeks a year but still being expected to pony up and pay 100% for the item and 100% of its annual expenses has motivated many investors not to abandon their dreams, rather to take a serious look at another approach of capturing that dream, “Fractional Ownership”.
Fractional Ownerships are now offered for:
- Luxury Condos and Homes
- Luxury Automobiles
- Luxury Yachts
- Luxury Jet Airplanes
- Luxury Art (yes, you can have a Picasso or Renoir part of the year)
La Vida Buena Offers 1/25th Vineyard Fractional Ownerships
Here is your opportunity to “put your toe” in the water and if later on you want to take the proverbial “plunge” and purchase 100% ownership of a La Vida Buena Argentine Boutique Vineyard your initial investment in the La Vida Buena Fractional Ownership will be fully credited plus an additional 10% profit. That is how confident La Vida Buena is about the value of its Fractional Ownership Program.
US$12,000 Investment for a 1/25th Vineyard Fractional Ownership
La Vida Buena Vineyards has made it possible for you to own part of a professionally planted and managed 10 acre Malbec vineyard that is nourished by the melting snow from the nearby Andes Mountains and delivered by the meandering Atuel and Diamante rivers.
What can I expect my US$12,000 investment to produce in income?
This is an excellent question and the answer depends of many variables, however, there are certain equations that can be utilized to arrive at realistic estimates and that are employed by many large, long established vineyards.
Before you delve into the figures below bear in mind that enhanced profitability requires a vineyard of 50+ acres (the major reason behind the La Vida Buena Vineyard’s 108 acre development) plus a worker’s house, tractor with implements, several vineyard workers, Vineyard Manager, Agronomist, Accountant and an Enologist to help produce great wine.
It may sound daunting, however, attractive returns can be realized by a smaller vineyard, like a La Vida Buena 10 acre fractional plus a 2 bedroom 2 bath Casita that adds both charm and additional income through its rental program and when available, can be used by the fractional vineyards owners when visiting their investment.
US$12,000 Per Investment Increment
Newly Planted in 2010 - 10 Acre Malbec Vineyard
Grape Yield Kgs. Price Per Kg. Gross Income US Dollars
2011 Year #1 -0- NA NA
2012 Year #2 -0- NA NA
2013 Year #3 20,000 AR Peso 2.5 US$12,820.00/ PI*$513.00
2014 Year #4 30,000 AR Peso3.0 US$23,077.00/ PI $923.00
2015 Year #5 40,000 AR Peso 3.5 US$35,898.00/ PI $1,436.00
In Year #5, after deducting vineyard expenses of maintenance, water, taxes etc. and harvesting costs (someone has to pick 88,000 pounds of grapes and cart them of to the Winery) your investment of US$12,000 would yield an annual income of $1,868 for a ROE of 15.6% and a ROI over 25%.
Now that is something to consider especially with exports of Argentine wine to its #1 customer, the USA (Canada is 2nd and Brazil now 3rd) increased 43% in 2008, 41% in 2009 and is up 19% the first five months of 2010.
Add to latter the fact that Robert Parker Jr., world renown Wine Critic, has graced many Argentine wines with ratings from 92 – 99 points and Wine Spectator recently released a long list of Argentine wines, red and white, that ranked between 87 – 90 points, the stage is set for you to take advantage o this opportunity..
If you would like to see how the Vineyard planting process evolves and the “bottom line” numbers on a Pro-Forma for a 10 Acre Malbec Vineyard with Rental Casita please respond and they will be sent to you by email with attachments.