Condo Breakeven or Cashflow
I get a lot of people asking about “the numbers” and how they work for condominiums. Specifically, people want to know about taxes, insurance, association fees, and other monetary costs associated with a condominium. I had such a request today and will share with you the work up that I done. The unit that I used for the analysis was Emerald Towers Unit 306 in Destin. This particular unit has 3 bedrooms, is located on the sixth floor, and feautes over 1700 square feet of living space. View the complete details here: Emerald Towers 606
The complete expense analysis is quite complicated and will depend on many different factors. Depending on your personal financial situation, there can be significant tax advantages including; depreciation, property tax, property expense, and interest reductions. These factors can greatly reduce the after tax cost of ownership. Combine these benefits with the long term appreciation enjoyed with real estate and you can see why so many people have to have a place on the beach.
