Rental Advantage

Many times we have a bias toward owning things. This is especially true in real estate, where, until recently, recreational real estate has seen tremendous appreciation. Many times, a condominium purchase has seemed to be the only affordable option.

Our apartment homes are very affordable and can be a much better value than owning your own home or condominium. In addition, there is no risk of a downturn in the real estate market that can cause a real loss in value when it is time for you to sell.

Comparing our 1100 sq ft, 2 bedrooms, and 2 bath apartment home to a condominium of equal size, amenities, and quality would typically cost a minimum of $125,000. This chart illustrates the comparative costs of renting your recreational home versus the monthly cost of that comparable condominium.

*This example assumes a 30 year mortgage at 6.5%, with a down payment of 20%
**Lost earning power on $25,000 down payment at a minimum of 5%.

Renting offers a monthly advantage in cash outlay of $326.24, or $3,918.88 annually. The difference narrows somewhat by the possible deductibility of interest and property taxes. Depending upon individual circumstances, a 25% tax rate would offer the maximum tax savings of $156.24 per month in the first year of ownership. As the interest portion of the mortgage payment declines each year, the tax savings is less.   

As these numbers indicate, our apartment homes offer one of the best alternatives to Northwoods living, even before one considers:
– The complete absence of risk in owning real estate
– Freedom from responsibility for any maintenance
– The flexibility of easily changing your residence as personal circumstances change.

After you review the facts and view our premises, please join us at the WOODS.