QUOTE(mini orchard @ Aug 20 2021, 07:24 PM)
Maintenance and interest expense are consumption cost which cannot be taken as cost of ownership which is in lieu of rental payment.
In investment, those are taken as expenses against rental income.
At the end, one must compare consumption cost against rental to make a decision whether which is a cheaper option.
I agree with what you are saying but since TS is going for own stay + he's already thinking of appreciation and breakeven... might as well throw more to him
QUOTE(Kar Weng @ Aug 20 2021, 08:32 PM)
Thanks, this actually makes it so much clearer for me.
So if I sold my house before completing the mortgage fully, I do get the remaining balance that I paid for ONLY ON THE PRINCIPLE. My potential loss would be the amount I paid for interest, renovation and the misc. fees of transaction. Am I getting it right?
Even if the new homeowner is paying by installment (since it's his mortgage), I'll also get a lump sum of cash back immediately since his bank will me paying the remaining balance (after the outstanding) to me right?
Well, generally you are correct. You are getting the remaining balance on whatever is due and owing to the Bank (fees/charges/outstanding interest etc). Different bank, different charges.
And yes, you will be getting the lump back. However, that is to be taken into account that your sale price is > than your purchase price. This does not include the ones you might potentially lose out on too (lower than your previous purchase price etc).
Aug 20 2021, 05:13 PM
Quote
0.0244sec
0.37
7 queries
GZIP Disabled