Hi everyone,
I have a condo.
Mortgage = (1425$)/month (2.54%)
condo fees = (465$)/month
property taxes = (130$)/month
rent = 1350$/month
overall = (670$)/month = (8040$)/year.
Mortgage = 300.000$
price to sell = 260.000$
payment to broker (to sell) = 10.000$
Conclusion - can't sell, loosing 8300$/year on nothing.
Future perspectives:
rate is increasing: bought at .75, now the rate is 1.75 and three more increases are being considered, hence, when I'll renew my mortgage in 2021 I'm expecting a rate of at least 2.5%. This would mean an increase in my mortgage interest rate from 2.5% to up to 5% and the payment to up to $400 per month. The rent price is not being planned to increase since the general economy in the region has a tendency of stability. Hence in 2021 my anual losses will increase to up to 13.000$
My plan.
Strategy 1. Keep the condo, make more money, sell the condo in 2021. Selling the condo now means 50.000$ out of the pocket to save 8000$ per year, probably 16.000$ in the next 2 years. On the other hand, I'm using these money for investments and last year I eceived around 15% more. Hence I managed to end the year in a small plus.
Strategy 2. There's an expectancy that 2019/2020 - will be the period of recession. Hence - condo prices will go down and rent might also go down. Hence - losses will increase more than expected now. Hence - better spend 50.000 now, and try to recover in the next 3-4 years.
Can anyone, please help with some suggestions how could this problem be solved ?
My friend told me to write here and maybe some better strategies could be found.
Thanks in advance !
Submitted January 21, 2019 at 11:02AM by p3t3r_sos http://bit.ly/2Mkv2QQ
