Thread: Figured it out.
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Old 09-22-2013, 03:24 PM
Mr.Kris Mr.Kris is offline
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Default Figured it out.

The amount of debt added to each home based on the purchase of recreation facilities, that is.

The amount is $51,480 per home, regardless of model, based on my estimate. The computation is quite simple it turns out.

Since the recreation facilities are valued on the amenity stream, you multiple $143 (amenity payments) times 12 months (payments per year) times 30 years (life/value of the bonds).

I can’t estimate when the $143 amenity fee will no longer be sufficient to service the bonds and pay for maintenance, repair, and improvements to the recreation facilities because I do not have a time-line for purchase/bond issue nor do I have estimates for maintenance, repair, and improvement costs. But, as more recreation facilities are purchased more of the amenity fees will be used for bond/debt maintenance. When I have more clarity I will let you know.

If you disagree I would love to hear your logic and see your figures.

Also, if no one is interested I'll keep my analysis to myself.