2. Research Questions:Research Questions:  What motivates a person to purchase an investment property in Minocqua, WI?  Why would they choose to invest here rather than other parts of the United States?  How would I go about finding a property in Minocqua, Wisconsin?

3. Background - MinocquaBackground - Minocqua  Minocqua, WI “Island City”  Northwest Corner of Oneida County  Gained Township Status on March 13, 1889  Supported by Logging in early years Source: Minocqua Chamber of Commerce

4. Background - MinocquaBackground - Minocqua  Population 4,453  Population nearly quadruples during the summer months  45 Lakes within Township of Minocqua  One of the largest concentration of freshwater bodies in the world 3,200 lakes, streams, and ponds  Supported by mainly by tourism industry  Endless outdoor recreational opportunities Source: Minocqua Chamber of Commerce

5. Income Producing (Rental)Income Producing (Rental)  Offices, Retail, Industrial, and Leased Residential  Tenants pay rent  Good investment for cash-on-cash return  Most commonly held property  Good return on investment = 5% without capital appreciation

6. Non-Income ProducingNon-Income Producing  Houses, Vacation properties, or vacant commercial buildings  Capital Appreciation  Must have income to support investment

7. Important ConsiderationsImportant Considerations  Pricing  Renovation  Maintenance  Location  Vacancy Issue

8. Pricing  Most Important Factor  Income producing (Rental)  Realtor (Purchase & Rental Price)  Rental Market Research  Property Management Services (Northwoods Property Management)  Non-Income Producing  Realtor & Self-Educated

9. Renovation  Costly and Time Consuming  Obtaining Permits dependent on type of renovation  Zoning Laws – Residential, Commercial, Business, Waterfront, Off-water  Chapter NR115 of Wisconsin State Legislature Inhibits the building on structures on waterfront locations Source: State of Wisconsin

10. Maintenance  Costly and Time Consuming  Increase properties value  Property Management Convenient, but costly!

11. Location  “Location, Location, Location”  Main differences Townships: Minocqua lower mill rate On-water Property Average Sale Price: $330,986 Off-water Average Sale Price: $126,653 Source: Interfacexpress: Greater Northwoods Multiple Listing Service

12. Sale Price AveragesSale Price Averages

13. Real Estate MarketReal Estate Market

14. Vacancy IssuesVacancy Issues  32,300 Housing Units in Oneida County  12,300 units or 41% Used for seasonal, recreational, or occasional use Source: Oneida County Workforce Profile

15. Economic Analysis: Employment  State of Wisconsin added 122,000 private sector jobs since 2010  Oneida County:  16,452 people employed in 2013  412 Jobs added in 2013  Two largest industries: Leisure and Hospitalities and Trade, Transportation, and Utilities Source: Oneida County Workforce Profile

16. Employment

17. Economic Analysis: WagesEconomic Analysis: Wages  Wisconsin Average Annual Wage: $41,985  Oneida County Average Annual Wage: $33,502  20% Lower than Statewide Average  Between 2011 – 2012 Average Annual Wages Grew by 2.4%  Relatively low average wages are largely a result of as lower cost of living Source: Oneida County Workforce Profile

18. Wages

19. Wages

20. Real Estate Market Analysis  319 Active Listings  22 Active O/C (Offer Contingency)  203 Properties sold  Total Property Valuation= $1.5 Billion (January 1, 2014 – May 3, 2014) Sources: 1) Interfacexpress: Greater Northwoods Multiple Listing Service 2) Town of Minocqua

21. Real Estate Market Analysis  Lowest median price in 2011 at $115,000  Median Price in 2013: $120,000  Price increase of 4.3% from 2011 – 2013.  Median Price 2014: $125,000  Price increase in 2014: ~4% Source: Interfacexpress: Greater Northwoods Multiple Listing Service

22. Real Estate MarketReal Estate Market

23. Conclusion  What motivates a person to purchase an investment property in Minocqua, WI?  Why would they choose to invest here rather than other parts of the United States?  How would I go about finding a property in Minocqua, Wisconsin?