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Glossary

The words MILA uses, explained in one sentence.

Each term opens with its general definition and follows with how MILA uses it in a home in Místico, Playa Hermosa de Jacó, Costa Rica. Figures are illustrative scenarios, under validation.

Bare ownership

Bare ownership is title to an asset without the right to use it or collect its fruits, which belong to whoever holds the usufruct.

At MILA, buying bare ownership means buying the title to the home at a discount. When the cycle ends and the usufruct expires, the whole home belongs to its holder. The market pays through appreciation; without it, the floor is the discount paid. On the site this right is called Ownership.

The figure exists in the Costa Rican Civil Code as a real right distinct from usufruct over the same asset.

Usufruct

Usufruct is the real right to use someone else's asset and keep its fruits, for example rent, for a period, without owning it.

At MILA, buying the usufruct means buying the right to use and rent the home during the cycle. Guests pay through the rental cash flow, so it depends on occupancy and is the highest risk of the three. On the site this right is called Rental.

In Costa Rica a usufruct over real estate is formalized in a public deed and registered at the Registro Nacional; it is regulated by the Costa Rican Civil Code.

Development (bridge capital)

At MILA, development is the bridge capital that funds the lot and construction of a home before the first shovel.

It comes in before building and exits at month 8, when the home is delivered: the bare ownership and usufruct investors pay it when they come in. The scenarios assume two homes a year with the same capital. It does not depend on occupancy and is the lowest risk of the three.

Cycle

The cycle is the term of the agreement between bare ownership and usufruct over the same home.

While it runs, the usufruct holder rents and enjoys the home; when it ends, the whole home belongs to the bare ownership holder. In MILA's scenarios the cycle is six years.

Appreciation

Appreciation is the increase in a property's value over time.

It is what pays the bare ownership investor. The scenarios use a base appreciation of 10% a year; Místico's figure over the last six years was 14% a year, according to Belong. These are illustrative scenarios, under validation.

Occupancy

Occupancy is the share of nights in a year that a home is rented.

It is the variable that moves the usufruct. The scenarios show 40% as the model's base case and 60% with retreats.

Retreats

Retreats are multi day wellbeing gatherings and experiences hosted in one place.

In the MILA ecosystem Belong runs them in the places Sabbatical Collective creates; they bring occupancy to the homes beyond traditional tourism.

Wellness real estate

Wellness real estate is property designed around wellbeing: nature, architecture, community and experiences.

It is the kind of project MILA curates. Its Destination 01 is Místico, a beach community with thirteen neighborhoods, more than 70% preserved nature and a private beach club in Playa Hermosa de Jacó.

Illustrative scenario

An illustrative scenario is a projection built on stated assumptions to understand how each right behaves.

It is not an offer and not a promise of returns. Every MILA investment is confirmed in its own contract. The calculator shows the assumptions behind each scenario.

MILA ecosystem

The MILA ecosystem is three independent companies with one shared philosophy.

Sabbatical Collective creates the places, MILA connects the investment and Belong brings them to life with hospitality and experiences.