[Josef]

How much of a loss monthly?

 

[Exodus]

That's just it. How much of a net loss is acceptable

 

[daveto]

That's just it. How much of a net loss is acceptable

Who's on first?

 

[cdr108]

That's just it. How much of a net loss is acceptable

none ... see my comments and calculations in the bubble thread

 

[James]

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

The way I would run a quick estimate the figures would be as follows:

Purchase price $342,000
Approx 4% land transfer taxes (assuming in Toronto) $13,680
Approx 0.5% closing costs $1,710
Total purchase cost $357,390

Sale price $380,000
Figure 5% total realtor commissions $19,000
Approx 0.5% closing costs $1,900
Net return $361,000

Net profit $3,610
Minus any penalties for breaking term of mortgage

All in all, I wouldn't say selling would be a wise decision. The general consensus is that you need to hold on to a property for at least 3-5 years to yield a healthy return.