Condos at Lake of the Ozarks

Condos at Lake of the Ozarks did very well in 2007, posting very respectable gains in appreciation of 9.5%, bringing the 5 year average to 9.8%.  Think about that, Lake of the Ozarks condominiums have gone up in price, on average, 9.8% per year over the last 5 years.  A $100,000 condo bought 5 years ago would now be worth $159,592 (on average), not to shabby!  That same owner also had a tax write-off on property taxes, interest paid on the mortgage, and also had the chance to enjoy and use the condo for recreation during that period.  What are your stocks/mutual funds doing right now?

In the above example, even if you sold the unit, paid a commission and closing costs, and paid the capital gains, you are still in great shape.  Cost of sale is 7%, the capital gain is taxed at 15%, and that is on the basis not on the whole $159,000.  The real advantage is that you only had to put 5, 10, or 20% down on the unit, so the power of leverage just gave you a great boost.

When you hear talk that the Lake of the Ozarks condo market is down, take a look at the real numbers and realize that smart money is making more money that ever at the Lake, that’s why lenders are lining up to fund 40 and 50 million project right now as we speak.  Call John Garrett if you need to discuss this situation any further at 888-322-1802 and remember to ask for John.

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