Gulf Coast Condo Ownership Costs
The cost of owning a condo is not as complicated and financially strenuous as most people think. Once the condo is purchased, the mortgage is one of only a few monthly fees. Each condo has an association that regulates the finances of the building as a whole. The association charges each owner a monthly fee; usually based on the square footage or number of bed rooms in the unit. These monthly dues typically include insurance on the unit, waste management, cable (most of the time), sewer, landscaping, maintenance and basic care of the property.
Basic Cash-flow Statement - (Sept 2016)
|Less 20% Down Payment||$87,000|
|Monthly Payment||$1,686||4.1875% (30 years)|
|Mortgage Payment||$1,686 / month||$19,176 / year|
|Association Dues||$498 / month||$5,976 / year|
|Electric Bill||$200||$2,400 / year|
|Insurance||$66 / month||$792 / year|
|Taxes||$220 / month||$2,640 / year|
|RENTAL INCOME||$50,000 / year|
|Less Management Fees / Cleaning||$8,000|
|Less Yearly Expenses||$32,040|
|CASH FLOW||$830 / month||$9,960 / year|
|FURNITURE DEPRECIATION||$5,000 / year||$25,000 / over 5 years|
|2 Trips for Maintenance||$3,000 / year|
|Unit Depreciation over 27.5 years||$15,818 / year|
|TAX SAVINGS||$23,818 / year|
*Note: All figures and calculations are for illustrative purposes only and are not to be used as tax information or to be considered a promise to perform.
If the property is a rental unit, the owner has a couple of options. They will want to contract an agency to advertise the property and maintain the unit during the times the owner is not using it or manage the unit themselves. We actually help our clients with rental traffic using our condo network. The fees for this service usually range from 15-30% of the gross rental income, depending on the needs of the owner. There are ways to minimize these fees and supplement the income by renting the unit yourself.
Utilities account for most of the monthly costs. An optional contents policy can protect owners from the following: damage by renters, accidents to renters and loss of income due to outages. With the prices where they are now, the "out-of-pocket" expense of owning a condo on the Gulf Coast, is as low as it may ever be again. The cost is around $300 per square foot. For a detailed idea breakdown of a specific condo, please request a cash-flow analysis by emailing firstname.lastname@example.org or calling (251) Area-Pro with any questions.
The data relating to real estate for sale on this website comes from the Baldwin County Association Of REALTORS®. The information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information deemed reliable but not guaranteed.