News   GLOBAL  |  Apr 02, 2020
 5.6K     0 
News   GLOBAL  |  Apr 01, 2020
 28K     0 
News   GLOBAL  |  Apr 01, 2020
 2.7K     0 

just1time

New Member
Member Bio
Joined
Jul 1, 2009
Messages
59
Reaction score
0
Bought for $342,000. put 20% down ($68,400). Now selling for $380,000-420,000. Assuming I sell and get $380,000, how much can i expect to walk away with after the sale and penalties etc given the following factors.
Mortgage Balance: $270,242.03
Maturity Date: June 22, 2016
Term: 5 years
Remaining Term: 4 years, 6 months
Remaining Amortization: 34 years, 6 months
Interest Rate: 2.30 %
Variable or Fixed: Variable
Payment Frequency:Monthly


Thanks
 

daveto

Active Member
Member Bio
Joined
Jul 9, 2008
Messages
749
Reaction score
0
Bought for $342,000. put 20% down ($68,400). Now selling for $380,000-420,000. Assuming I sell and get $380,000, how much can i expect to walk away with after the sale and penalties etc given the following factors.
Mortgage Balance: $270,242.03
Maturity Date: June 22, 2016
Term: 5 years
Remaining Term: 4 years, 6 months
Remaining Amortization: 34 years, 6 months
Interest Rate: 2.30 %
Variable or Fixed: Variable
Payment Frequency:Monthly


Thanks

Uh. Why not ask your bank??
 

js97

Senior Member
Member Bio
Joined
Aug 6, 2009
Messages
1,061
Reaction score
0
Bought for $342,000. put 20% down ($68,400). Now selling for $380,000-420,000. Assuming I sell and get $380,000, how much can i expect to walk away with after the sale and penalties etc given the following factors.
Mortgage Balance: $270,242.03
Maturity Date: June 22, 2016
Term: 5 years
Remaining Term: 4 years, 6 months
Remaining Amortization: 34 years, 6 months
Interest Rate: 2.30 %
Variable or Fixed: Variable
Payment Frequency:Monthly


Thanks


Approximately $1,000,000.00 dollars


Don't forget real estate fees (5% or less)
Closing costs for lawyer, status certificate (1,000 and 100.00?)
Mortgage (3 months interest & discharge fees)
 

cdr108

Senior Member
Member Bio
Joined
Apr 22, 2008
Messages
4,724
Reaction score
59
Approximately $1,000,000.00 dollars


lol ... reality is around $15,000 after all the above.

Q: why are you selling only after 6 months ?!?
what was the point of buying in the first place - to enrich your realtor with commissions?
or do you believe the market has peaked and want to get out ASAP?
 

hodgkinsken

Active Member
Member Bio
Joined
Jun 21, 2010
Messages
114
Reaction score
0
~$19k for real estate fees (at 5% of 380k)
~$2-3k for mortgage break (assuming your bank charges you 3 months of interest as a break fee)
~$2k for lawyers and associated costs

So ~$23k in cost

$380 - $342= $38k - $23 = $15k is what you'd walk with in profit. Actual cash in pocket would be ~$87k after paying off mortgage and all associated fees
 
Last edited:

cdr108

Senior Member
Member Bio
Joined
Apr 22, 2008
Messages
4,724
Reaction score
59
~$19k for real estate fees (at 5% of 380k)
~$2-3k for mortgage break (assuming your bank charges you 3 months of interest as a break fee)
~$2k for lawyers and associated costs

So ~$23k


i don't get it ?!? how does he walk away with $23K ?

if his costs (just to sell, we won't even include his acquisition costs like LTT, legal fees, development fees if any, etc) are $23K based on the above,
and his gross gains are $38K = $380K-342K;
then shouldn't his net gains be $15K = $38-23K ???
 
Last edited:

hodgkinsken

Active Member
Member Bio
Joined
Jun 21, 2010
Messages
114
Reaction score
0
i don't get it ?!? how does he walk away with $23K ?

if his costs (just to sell, we won't even include his acquisition costs like LTT, legal fees, development fees if any, etc) are $23K based on the above,
and his gross gains are $38K = $380K-342K;
then shouldn't his net gains be $15K = $38-23K ???

You're right. I just calculated the cost of selling. I mis read and thought that's what he was asking
 

AKS

Senior Member
Member Bio
Joined
Aug 5, 2008
Messages
1,449
Reaction score
0
If you take into account land transfer taxes, lawyer fee and closing costs for the purchase...

$6750 LTT + PLTT
$1500 lawyer fee + disbursements
closing costs unknown

15,000 - 8,250 = $6750 - closing costs = less than $6750
 

cdr108

Senior Member
Member Bio
Joined
Apr 22, 2008
Messages
4,724
Reaction score
59
You're right. I just calculated the cost of selling. I mis read and thought that's what he was asking


no worries hodgkinsken.
i thought so, but then it's possible that you used another figure since the OP said units are selling $380,000-420,000.



AKS said:
If you take into account land transfer taxes, lawyer fee and closing costs for the purchase...

$6750 LTT + PLTT
$1500 lawyer fee + disbursements
closing costs unknown

15,000 - 8,250 = $6750 - closing costs = less than $6750

thanks AKS ... which again begs the Q to the OP, why buy and sell so soon ?
 

drewp

Active Member
Member Bio
Joined
Nov 15, 2009
Messages
342
Reaction score
2
If you are not making that much profit than why don't you rent it out, and wait for the property to appreciate over time.

May I ask where is your unit located?
 

JayBee

Senior Member
Member Bio
Joined
Mar 17, 2009
Messages
1,354
Reaction score
1
If it's a popular building...why not sell the unit yourself? You can save a good chunk of change.
 

daveto

Active Member
Member Bio
Joined
Jul 9, 2008
Messages
749
Reaction score
0
~$2-3k for mortgage break (assuming your bank charges you 3 months of interest as a break fee)

I believe this (the mortgage break fee) was the intent behind the OP's question.

The 3 months interest typically applies to variables, whereas for a 5 year fixed the fee will depend upon the difference between the current rates and the existing mortgage, the term remaining, etc. This can often run into the $10-$20k rate

Because we aren't your bank, and we don't have the contractual terms of your mortgage in front of us, the OP should contact his bank immediately.
 

just1time

New Member
Member Bio
Joined
Jul 1, 2009
Messages
59
Reaction score
0
Thanks for the input.
Just looking at a property which I suddenly got interested and might be willing to sacrifice what i have in this right now for. So I was just looking for a rough estimate to see what my loss or profit would be if i opted to sell this one.
 

lola11

New Member
Member Bio
Joined
Jan 11, 2012
Messages
5
Reaction score
0
why dont you take equity out of your current property and purchase your new property and rent the property you currently have
 

Exodus

Active Member
Member Bio
Joined
Jun 6, 2008
Messages
169
Reaction score
0
why dont you take equity out of your current property and purchase your new property and rent the property you currently have
I am stuck in a similar scenario of rent vs sell. I am in the midst of waiting for my preconstruction condo to be completed, and debating what I should do.

If the montlhy rent does not cover monthly expenses (mortgage, maintenance, prop tax etc), and there is a monthly net loss, is it worth holding onto the unit in hope of appeciation later down the road? Or should you just sell?
 

Top