Quote:
Originally Posted by jrc
Well the only flaw in your math is not taking into account capital appreciation. If the sell price of the slip increases by 3% a year, then the extra $1100 a year would cover the rent difference.
Then again if the value decreases, you are even worse off. There is a minimum value of lake front property, the trouble is that no one knows what it is.
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JRC the significant factor underpinning "capital appreciation" is interest rates. They have been on a 30-year downward trend (now basically zero). Anyone who bought assets in the past 30-years has done well due to the tailwind of the Fed's interest rate policy. The bottom line is this will not always be the case. Therefore, when making a discretionary purchase like a slip I wouldn't count on much "appreciation" to make the math work.