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)

*This Cash-flow statement was done for a 2BR Lighthouse condominium using our supplemental network.

Sales Price $435,000  
Less 20% Down Payment $87,000  
Mortgage $348,000  
Monthly Payment $1,686 4.1875% (30 years)
Mortgage Payment $1,686 / month $19,176 / year
Association Dues $498 / month $5,976 / year
Telephone $0  
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  
Income $42,000  
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 or calling (251) Area-Pro with any questions.