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..

This post has been edited by leanman: Apr 27 2009, 11:45 AM