Paying for the extras.
The papers describing the Courtyard enhancements and the Hanging Gardens on the steel structure are more than exercises in imagination; they point to enhancements that will increase the value of our properties and also provide a little more enjoyment from living here.
The cost of the Courtyard plus the Hanging Gardens adds up to about $30,000. How can we afford that?
Well – there are some options.
- Option A: $30,000 split 56 ways is $535; raised over two years by Special Levy is $268 per owner annually.
- Option B: Borrow it. A loan table shows $30,000 borrowed at 5% and repaid over 10 years requires a monthly payment of $318.20 or $3,818 annually. This is about $68 per owner and is a bit more acceptable. The individual cost over 10 years is $680.
- Option C: our new Maintenance Fund will accumulate a reserve to provide for future repairs and replacements. This reserve will presumably be deposited at an interest rate lower than the borrowing rate of Option B. Our "New Projects" could borrow from the Maintenance Fund at this rate yielding a modest saving. The $680 of the loan method could be reduced to at most $600.
A more significant factor would be the added value to each property due to the new facilities. Assuming - conservatively - an average sales price of $600,000, an increase in value of only .1% recovers the investment into the suggested new facilities.