|
Making Money On Second Home A Fantasy? Jeff Brown, a business columnist for the Philadelphia Inquirer, believes a second home is an indulgence if it�s being acquired primarily or exclusively for one�s own use. The following quotes are from a recent article of his: �Say you bought a place for $300,000, borrowing $240,000 at 6%. Suppose the property appreciated 6% a year � about double the inflation rate. After five years, the property would be worth just over $400,000, for a $100,000 �profit� on the $60,000 initially invested as the down payment. But interest would have cost about $70,000, reducing the profit to $30,000. �A $30,000 gain on a $60,000 investment over five years is an annual return of about 8%, which is nothing special. But you might also have paid $5,000 a year in real estate taxes, and another $1,000 a year in homeowner�s insurance. That�s $30,000 over five years�erasing your profit. �If you pay a standard 6% realtor�s commission to sell the property, you�d be $24,000 in the hole. And we haven�t considered maintenance and utilities, cost of furnishings and traveling to the property. �Sure, some people make money on second homes, but I bet many are making less than they think.�
|
about us | about b meyer |
from the desk of | contact us | issues | back issues | consulting services | entrepreneurs package | Competitve Edge | FastStart | order |
classified advertising | affilates | banner ads | first time visitors | travel section | media section | trade exchange
section | corporate barter section | countertrade section | secondary capital
section | real estate section |
trade exchange news 2005 |
marketplace |
community barter section |
restaurant & entertainment
section | USA barter companies | global barter companies | trade exchange owners | sponsors | tuesday report |
2005 Tuesday Reports | 2004 Tuesday Reports | 2003 Tuesday Reports | 2002 Tuesday Reports | 2001 Tuesday Reports | 2000 Tuesday Reports | 1999 Tuesday Reports |