Apr 27 2009, 08:44 PM
QUOTE(leanman @ Apr 27 2009, 11:42 AM)
from your calculation above, the interest is on a fixed over 6 years where in actual fact all housing loans are on a reducing balance, some even up to daily rest. in this case the interest is lower than what you calculated.
if its at 2003, 7% is quite reasonable to begin with.
looking at the asking price, if you take into consideration of the interest rate, stamp duty for loan and property, its definitely at a loss. if the owner was occupying the unit for the last 6 years, must take into consideration of the opportunity cost as well..
Both calculation are not correct.if its at 2003, 7% is quite reasonable to begin with.
looking at the asking price, if you take into consideration of the interest rate, stamp duty for loan and property, its definitely at a loss. if the owner was occupying the unit for the last 6 years, must take into consideration of the opportunity cost as well..
When the housing proceed to the next phase, bank will release a certain sum of money to the developer.
There is no reduction of principle during these periods.
Interest are counted on the release sum.
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