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Long term control over escalating rent cost.
Substantial tax benefits for unit owner.
Future benefits of appreciation.
Build equity through mortgage amortization.
Enhance company image through ownership.
Turn-key situation — completed, ready to move in.
Minimal involvement in every day maintenance.
Professional management with on-site property manager.
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(2000 Gross Sq Ft / 1570 Net Sq ft)
Purchase Price..............$360,000
25% Down Payment........$90,000
Mortgage Amount..........$270,000
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Principal & Interest (6.5% / 20yr.......$2,013 /mo.......$24,156 /yr
Real estate taxes ($11.35 /$1000)......$340 /mo.........$4,086 /yr
Common Charges.................................$708 /mo........$8,500 /yr
Total...........................................................................$36,743 / yr
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Mortgage Interest (estimated 5 yr avg.)....................$16,332
Real estate taxes.........................................................$4,086
Common Charges.........................................................$8,500
Total............................................................................$28,918
Add Depreciation (straight line; 39 yrs; 100%).......$9,231
Total expenses and depreciation...............................$38,149
Tax savings (33% bracket)........................................$12,589
Yearly cash flow cost................................................$36,743
Plus Down Payment Lost Interest Income (est. 5%).... $4,500 /yr
Less tax savings (assumes passive loss eligibility)..($12,589)
NET ANNUAL COST.....................................................$28,654
Net ownership cost annually / square foot...........$14.32
This analysis to be used as an example; figures, rates, tax brackets
varies per the individual circumstances of a buyer.
There may be certain limitations, Please contact your tax advisor. |
