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Difference between revisions of "The Omni/Cost Estimate"
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Source: You can look up the tax history [https://www.acgov.org/propertytax/history.htm here] using the parcel number. | Source: You can look up the tax history [https://www.acgov.org/propertytax/history.htm here] using the parcel number. | ||
= Mortgage = | |||
Using [http://www.mortgagecalculator.org/ this calculator], with $1.9 million as the property value, credit rating "good", loan amount $1.52 million (indicating a 20% down payment), a 5% fixed interest rate and a loan term of 30 years, the monthly payment is $10,440. If we change it to a mortgage rate of 4.125% (seems more realistic. found via [http://www.zillow.com/mortgage-rates/ca/oakland/ zillow]) then the monthly payment is $9,647. These payments include the 1.4403% property tax. | Using [http://www.mortgagecalculator.org/ this calculator], with $1.9 million as the property value, credit rating "good", loan amount $1.52 million (indicating a 20% down payment), a 5% fixed interest rate and a loan term of 30 years, the monthly payment is $10,440. If we change it to a mortgage rate of 4.125% (seems more realistic. found via [http://www.zillow.com/mortgage-rates/ca/oakland/ zillow]) then the monthly payment is $9,647. These payments include the 1.4403% property tax. | ||
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== Paying off down-payment == | == Paying off down-payment == | ||
The down-payment of $380,000 will be paid by certain moneyed | The down-payment of $380,000 will be paid by certain moneyed individuals. This may be in the form of a loan or an investment. Either way they will probably have to be paid back with some return on their loan/investment, since the community probably wants full ownership of the property in the long term. | ||
Let's assume that the return for these lenders/investors is a reasonable 5% annual percentage rate. | Let's assume that the return for these lenders/investors is a reasonable 5% annual percentage rate. | ||
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*4.125% mortgage, down-payment at 5% over 20 years: $12,375 per month | *4.125% mortgage, down-payment at 5% over 20 years: $12,375 per month | ||
= Renting = | |||
If we rent, then the rent is $13,000 a month triple-net. | If we rent, then the rent is $13,000 a month triple-net. | ||
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We also need liability insurance, but it is probably enough for each individual group to get liability insurance that suits their needs, and it will vary based on the group's activities. | We also need liability insurance, but it is probably enough for each individual group to get liability insurance that suits their needs, and it will vary based on the group's activities. | ||
= Utilities = | |||
On top of mortgage payments come utilities. I have no idea what they'd be, but let's assume $2,000 for no good reason. | On top of mortgage payments come utilities. I have no idea what they'd be, but let's assume $2,000 for no good reason. | ||
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*Renting with $50,000 deposit: ~$17,433 | *Renting with $50,000 deposit: ~$17,433 | ||
= Renovations and requirements = | |||
What needs to be done / fixed up in order for the building to become safe for our purposes? Here are a list of possibles: | What needs to be done / fixed up in order for the building to become safe for our purposes? Here are a list of possibles: | ||
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More research is needed. | More research is needed. | ||
= Total monthly expense = | |||
If we haven't missed any big expenses in these calculations, and assuming we need no improvements/renovations (doubtful) then the total monthly expense will be around $15,000 per month if we buy or $17,000 a month if we lease. This may be a somewhat high estimate. If the insurance is truly only $500 a month and the utilities are only $1,500 a month, then we're down to $14,000 or $16,000 a month. | If we haven't missed any big expenses in these calculations, and assuming we need no improvements/renovations (doubtful) then the total monthly expense will be around $15,000 per month if we buy or $17,000 a month if we lease. This may be a somewhat high estimate. If the insurance is truly only $500 a month and the utilities are only $1,500 a month, then we're down to $14,000 or $16,000 a month. | ||