GreatCottage.com
Real Estate | Michigan | Lakefront | Irish Hills | Hillsdale | Jackson | Coldwater | Lenawee

Cottage Economics 101

This model illustrates that owning a cottage can and should be a wonderful investment. Lakefront property for the most part, is already made. There is no more. Interest rates are at all time lows and basically, most or all of your mortgage payments, tax and insurance payments will be returned to you upon sale at a later date. In addition, most taxpayers will experience a significant tax savings during ownership. Please carefully review the columns where the numbers are printed in bold.

This analysis was prepared by Jim Lundberg Jr., CPA, Realtor. There will be some high income and other taxpayers where this model will not be applicable. Prior to making a decision based upon this model you should consult with your tax advisor.

ASSUMPTIONS:

• PURCHASE A $250,000 LAKE HOME
• DOWN PAYMENT IS $ 40,000
• MORTGAGE IS $210,000
• INTEREST RATE IS 5.50% FOR 15 YEARS, 6.25% FOR 30 YEARS
• REAL-ESTATE TAXES ARE ESTIMATED @ $3000
• LAKE HOME APPRECIATION IS ESTIMATED @ 4% ANNUAL
• FEDERAL INCOME TAX RATE IS 28%
• PROVISION MADE FOR 1ST YEAR CLOSING COSTS

View a 15 Year Model
View a 30 Year Model

Cottages 101

• Cottage Economics 101
• Boating Safety

Search for Lake Homes

MLS:

Lenawee/Jackson SW Michigan

County:

No Preference Alcona Bay Cheboygan Chippewa Clare Crawford GLADWIN Genesee HURON Hillsdale Ingham Jackson Lapeer Lenawee Livingston Macomb Midland Monroe OGEMAW COU Oakland Other Roscommon SANILAC ST. CLAIR Saginaw Shiawassee Washtenaw Wayne

County:

No Preference

Bedrooms:

Any Number 1+ 2+ 3+ 4+ 5+

Bathrooms:

Any Number 1+ 2+ 3+ 4+ 5+

Min Price:

Max Price:

Lake Name:

No Preference Any Lake Ackerson Adrian BRIGGS LAK Bass Lake Bel-Air Bird Black Lake Brills Browns Cass Clark Clear Columbia Cove Cranberry Crispell Crooked Crystal Deer Devils Dewey Duck Lake Erie Evans Farwell Finton Gillett Gilletts L Goose Goose Cree Grand Rive Grass Grass Lake Hemlock Hiland Lak Honey Horseshoe Houghton Huron Iron Mill JORDAN Kelly Kenyon LAKE ORION Lake Lapeer Leann Lime Little Sto Little Wol Loch Erin Long Loon Marr Meadow Mercedes Michigan C Middle Middle Str Mirror Moon Morrison Mud Narrow Lak None North Norvell Oakland Olcott Other Ottawa PADDOCK Patterson Peterson Pine Hill Pleasant Portage Posey Price Privately Rainbow Raisin Riv Red Mill P Riley Round SHADOW LAK Saint Clai Sand Sanford Sequoia Sharpe Shiawassee Silver Silverlake Skiff Somerset South St. Clair Stoney Stony Swains Swan TAMPERI TWIN Tamarack Timber Tims Twin Lakes Vandercook Vineyard L WHITE LAKE Wamplers Washington Watkins White Wolf

Lake Name:

No Preference Any Lake

Lake Access:

No Preference Any Access Assoc. Access Channel Front Lake Access Lake Front No Water Selection

Lake Access:

No Preference Any Access Assoc Access Deeded Access Lake Front No Lake Access

Property Type:

Residential Vacant Land

MLS Number:

More Options 

 

Designed and Hosted by Enertia Solutions

Admin  |  Webmail  |  Sitemap

   

© 2013 Jim Lundberg. All rights reserved. All information is deemed reliable but not guaranteed. Property data copyright Jackson, Hillsdale and SWMRIC MLSs 2013.