Asked by Anonymous
Hi sifu sekalian, 1st of all please assume that I have almost 0 knowledge when it comes to anything property related. It has never been my area of interest. I've been a renter around KV all along and I live by the mantra of being debt-free. I was always on the RENT side of the "buy vs rent" dilemma until recently.
However due to lifestyle inflating my rents has climbed up significantly, upgrading to a better place with each move. Many people are saying I might as well buy a house for myself (most would use the notion I'm "paying for my landlords' mortgage"). I always hated that idea because I like to remain debt-free for my own peace of mind. 30-35 years of commitment with no way to back off is very intimidating for me.
Right now I'm only seriously considering the possibility of buying a house. I had a light discussion with a friend the other day and she strongly encouraged me to buy my 1st house. She said I can always sell my house if, worse comes to worst, things don't work out, so I shouldn't worry too much. However, I like to understand my escape plan or I'll be too paranoid to commit.
So a few questions here:
1) If I decide to sell my house before finishing my mortgage for any reason, how exactly does that work? Assuming the property did not appreciate / depreciate, do I get all the money (principal + interest paid) back to me as cash? What if the buyer is also buying from me with a housing loan?
Frankly I just can't wrap my head around this since it involves a loan. I'm very confused with the "who's paying who?" in this scenario.
2) Assuming a RPGT of 5% (if I'm only selling after the 5th year of ownership), how many % of appreciation does it take for me to BREAKEVEN after all the other related fees considered?
3) What are some of the hidden CONS of selling my own-stay that is different from selling an investment property?(e.g. the inconvenience to move away easily, things like that...)
4) Why is selling your o
However due to lifestyle inflating my rents has climbed up significantly, upgrading to a better place with each move. Many people are saying I might as well buy a house for myself (most would use the notion I'm "paying for my landlords' mortgage"). I always hated that idea because I like to remain debt-free for my own peace of mind. 30-35 years of commitment with no way to back off is very intimidating for me.
Right now I'm only seriously considering the possibility of buying a house. I had a light discussion with a friend the other day and she strongly encouraged me to buy my 1st house. She said I can always sell my house if, worse comes to worst, things don't work out, so I shouldn't worry too much. However, I like to understand my escape plan or I'll be too paranoid to commit.
So a few questions here:
1) If I decide to sell my house before finishing my mortgage for any reason, how exactly does that work? Assuming the property did not appreciate / depreciate, do I get all the money (principal + interest paid) back to me as cash? What if the buyer is also buying from me with a housing loan?
Frankly I just can't wrap my head around this since it involves a loan. I'm very confused with the "who's paying who?" in this scenario.
2) Assuming a RPGT of 5% (if I'm only selling after the 5th year of ownership), how many % of appreciation does it take for me to BREAKEVEN after all the other related fees considered?
3) What are some of the hidden CONS of selling my own-stay that is different from selling an investment property?(e.g. the inconvenience to move away easily, things like that...)
4) Why is selling your o
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