quote:
Originally posted by minimoke
Quote:
quote:Originally posted by trackers
So, $65,000 less ~$5000 interest/rates less $6000 Real Estate Agent fees less Lawyer fees both ways ~$3000 Less Maintenance/Improvements $3000 = $48,000 profit.
Thanks for the figures Trackers – always useful to see the real thing rather than just theory.
If I could perhaps suggest a slight change in your views. It seems you think you have made a $40 - $70 k profit. I’m not sure you have as you will only gain a profit on the sale of your property – and at that point you are probably going to buy another house to live in which will cost you even more – so all your doing is riding the escalator to ever increasing property values – even if they are funded by ever increasing mortgages.
What you have now achieved is an increase in equity and this is the real value of your property purchase. You’ll find you can now go to the bank and ask them to lend you more money and it is what you do with this money which will help determine your future. Borrow for a new car or holiday and you are doomed. Borrow to buy an asset and you’ll be right.
You’ll also finds it a darn sight easier getting money out of the bank using property equity rather than share equity so well done!