50' Deep Water Boat Slip - Purchase Assumptions
| Purchase Price: |
$175,000
|
Rent
vs. Buy This example uses a fairly typical price point for the purchase of a 50' Deep Water Boat Slip and should provide a good comparison for a well maintained facility. The purchase price is based on $3500 per linear foot of dockage which can still be found in many areas. The rental rate of $750 per month is based on $15 per linear foot - and is the average for facilities that have a purchase price in the $3200 - $3600 PLF range. This example DOES NOT include the ADDITIONAL INCOME that is earned through straight line depreciation. Depending on the type of use and how your accountant or tax attorney sets up your investment, this type of unit can be typically be straight line depreciated over a 10, 20 or 27 year term. Break Even is in 1.2 Years If you do not plan on keeping you slip for at least 1.2 years then you should consider continuing to rent. If you plan to keep you boat slip for a couple of years you should seriously consider purchasing it if the option is available. |
| Loan Interest Rate: |
7.00%
|
|
| Downpayment |
$46,633
|
|
| Closing Costs |
$3,367
|
|
| Mortgage Amount |
$128,367
|
|
| Loan Term |
30
yrs
|
|
| Loan Origin Rate |
1.00%
|
|
| Points Paid |
1.00
|
|
| Average Investment Market Return Rate |
10.00%
|
|
| Average
Boat Slip Appreciation Rate |
9.00%
|
|
| Property Tax Rate |
2.00%
|
|
| Personal Income Tax Rate |
34.00%
|
|
| Current Rental Payment |
$750
/month
|
|
| Inflation Rate |
3.75%
|
|
| Future Sales Commission Rate |
5.00%
|
|
Future
Payments Analysis
Please Note: This
is a 30-Year Analysis - Shorter Loan Terms typically provide even greater advantages.
|
Year
|
Boat
Slip Payment
|
Payment
After
Tax Savings* |
Rental
Payment
|
Value
of Cash
if Invested at 10% |
Boat
Slip Equity
at 9% Appreciation |
|
1
|
1145.70
|
794.30
|
750.00
|
55,540
|
54,149
|
|
2
|
1171.95
|
814.38
|
778.13
|
61,533
|
71,856
|
|
3
|
1,200.56
|
836.22
|
807.30
|
68,031
|
91,133
|
|
4
|
1,231.75
|
859.97
|
837.58
|
75,096
|
112,117
|
|
5
|
1,265.74
|
885.81
|
868.99
|
82,797
|
134,962
|
|
6
|
1,302.80
|
913.91
|
901.57
|
91,210
|
159,832
|
|
7
|
1,343.18
|
944.47
|
935.38
|
100,421
|
186,908
|
|
8
|
1,387.21
|
977.72
|
970.46
|
110,530
|
216,385
|
|
9
|
1,435.19
|
1,013.89
|
1,006.85
|
121,644
|
248,478
|
|
10
|
1,487.50
|
1,053.23
|
1,044.61
|
133,888
|
283,419
|
|
11
|
1,544.51
|
1,096.02
|
1,083.78
|
147,400
|
321,461
|
|
12
|
1,606.65
|
1,142.58
|
1,124.42
|
162,335
|
362,881
|
|
13
|
1,674.39
|
1,193.23
|
1,166.59
|
178,867
|
407,978
|
|
14
|
1,748.22
|
1,248.33
|
1,210.34
|
197,193
|
457,081
|
|
15
|
1,828.70
|
1,308.27
|
1,255.73
|
217,531
|
510,546
|
|
16
|
1,916.42
|
1,373.49
|
1,302.82
|
240,127
|
568,762
|
|
17
|
2,012.04
|
1,444.45
|
1,351.67
|
265,256
|
632,151
|
|
18
|
2,116.26
|
1,521.66
|
1,402.36
|
293,228
|
701,175
|
|
19
|
2,229.86
|
1,605.67
|
1,454.95
|
324,388
|
776,335
|
|
20
|
2,353.68
|
1,697.08
|
1,509.51
|
359,122
|
858,178
|
|
21
|
2,488.65
|
1,796.54
|
1,566.11
|
397,862
|
947,301
|
|
22
|
2,635.77
|
1,904.77
|
1,624.84
|
441,093
|
1,044,351
|
|
23
|
2,796.12
|
2,022.55
|
1,685.77
|
489,355
|
1,150,035
|
|
24
|
2,970.91
|
2,150.71
|
1,748.99
|
543,252
|
1,265,124
|
|
25
|
3,161.43
|
2,290.18
|
1,814.58
|
603,460
|
1,390,456
|
|
26
|
3,369.10
|
2,441.96
|
1,882.63
|
670,733
|
1,526,945
|
|
27
|
3,595.45
|
2,607.14
|
1,953.22
|
745,914
|
1,675,585
|
|
28
|
3,842.18
|
2,786.91
|
2,026.47
|
829,941
|
1,837,461
|
|
29
|
4,111.11
|
2,982.56
|
2,102.46
|
923,865
|
2,013,754
|
|
30
|
4,404.25
|
3,195.49
|
2,181.30
|
1,028,855
|
2,205,752
|
* Not all situations are eligible for this tax savings.