Adirondack Real Escapes
7947 Brantingham Road
Greig, NY 13345
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* * Sample Brantingham Property Cost * *
Many factors go into determining the actual cost of property ownership.
Below we have created a realistic and conservative example of just how much it might cost to own a mid-range Brantingham Lake waterfront property. By necessity we have had to make several assumptions, some of which are: 1) that you not only maintain, but improve the property, and 2) that your tax bracket (Federal+NYS) is 34% (i.e. you file jointly, and your taxable income is over $47,000).
A third major assumption is based on the fact that there is a strong demand for waterfront rental property in the Brantingham community. We are assuming that (since you want to minimize your costs) you will rent the property for a portion of the Summer and Winter, and do so in a businesslike fashion.
We have additional handouts regarding renting vacation property and will be glad to answer any other questions you have regarding renting. [We have had personal experience with renting to hundreds of families in the Brantingham area.]
We can do a more specific calculation for your situation if you provide us with different information (e.g. your tax bracket). [Although the information below is believed to be accurate, it is not guaranteed. We also recommend that you have an accountant review any projections in light of your entire financial situation.]
Below is our estimate (generally conservative) of what a twelve month income/ expense statement might look like for the Brantingham lake waterfront home, BL-174 (a 2003, mid-range listing). [We have similar calculations available for ALL of our listings]. This is a sample of how it works:
$225,000 = Price (list price is $229,000)
$ 45,000 = Down Payment (of course you get this back when you sell)
$180,000 = First Mortgage (paid to the Lender, in this case)
- $ 1190/ mo = Mortgage [P+I] (at the rate of 5.00% for 20 years)
- $ 460/ mo = Property Taxes (assuming a tax assessment of $210,000)
(this assumes you also utilize a STAR exemption.)
- $ 150/ mo = Misc [Maint+Ins+Util+etc] (a fairly generous amount for these items)
+$ 850/ mo = Rental Income (Main: rent 6 wks @ $800/wk [Summer]
+ 2 mo @ $700/mo [Winter] + Cottage: 8 wks @ $500/wk [Summer])
+$ 100/ mo = Vacation Savings (for your use, assuming 2 wks @ $600±/wk vacation)
+$ 385/ mo = Income Tax Refund (first year, assuming 34% tax bracket [Fed+NYS]:
income of $10,200 minus deductions of $9,000 interest,
$5,500 taxes, $1,800 misc, and $7,450 for depreciation)
- $ 465 = Cash Flow per Month (all the above, after income taxes)
+$ 440/ mo = Equity Build Up (the first year principle paid off on the loan)
+$ 375/ mo = Appreciation (projecting a low 2% per year for inflation, etc)
+ $ 350 = Net Profit per Month (after taxes, over the period of ownership)
So, the surprising conclusion is that you can own this year round lakefront home
and be PAID $350 per month!
This does not take into account the value of the pleasure you, your family and your friends will get out of using such a fun property, or the enjoyment of new friends you will make, or the reward of breathing fresher air and drinking cleaner water, or the benefit of de-stressing your life, etc.
Just how much extra $$$ are these worth? You decide...
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