Hi All,
My friend has plan to move back to India in Sept 2012. He has few questions and looking for your advice in advance. I am posting this because I am very interesting and may plan for moving back to India in future.
He owns townhome in Canada with 5 year closed mortgage term. Term end in Sept 2015. Few questions. He want to sell the house before going to India but it might cost high panelty. We have thought about few options below. You can add more options and provide your suggestion.
1) Pay panelty and sell house before moving to India.
In this case, How much will be the panelty? Consider the remaining mortgage amount will be $175000 from Sept 2012. His interest rate is 3.5%. Any formula to calculate the panelty?
2) Pay panelty and convert to variable open mortgage or 1 year closed mortgage today and sell it before moving.
This may help if panety will be less than the option (1). Any idea about how much will be the panelty in this case?
3) Rent home through property manager for 3 years. At the end of the mortgage term come back to Canada to sell it. Don't know how easy to sell home after 3 years?
In this case, any suggestion for good property manager? Any idea about who will be responsible if there will be any illigal activity in home through tenant? (Property Manager OR Owner?).
Once assign the property manager, What are other problems which owner has to deal with property manager or tenant?
4) Look for tenant who is ready for rent to own option.
In this case, do you still suggest to hire property manager for 3 years?
Can we make special contract with tenant/buyer? (like, he owns the home from Sept 2012 and he is 100% responsible for any kind of maintainance/upgrade (including furnace and major appliances ...) . So, we do not need to hire property manager?
5) Any other options?
For your information.
1) It is the townhome and today's price is about $310K. We think it will be easy to rent or sell as of today. Don't know about condition after 3 years?
2) Brand new home. Constructed in 2010 and includes Tarion Warranty.
Thanks,
-----------------------------------------------------------------
Success is Never Ending and Failure is Never Final.
Quote:
Originally posted by meitsme
Hi All,
My friend has plan to move back to India in Sept 2012. He has few questions and looking for your advice in advance. I am posting this because I am very interesting and may plan for moving back to India in future.
He owns townhome in Canada with 5 year closed mortgage term. Term end in Sept 2015. Few questions. He want to sell the house before going to India but it might cost high panelty. We have thought about few options below. You can add more options and provide your suggestion.
1) Pay panelty and sell house before moving to India.
In this case, How much will be the panelty? Consider the remaining mortgage amount will be $175000 from Sept 2012. His interest rate is 3.5%. Any formula to calculate the panelty?
Quote:
2) Pay panelty and convert to variable open mortgage or 1 year closed mortgage today and sell it before moving.
This may help if panety will be less than the option (1). Any idea about how much will be the panelty in this case?
Quote:
3) Rent home through property manager for 3 years. At the end of the mortgage term come back to Canada to sell it. Don't know how easy to sell home after 3 years?
In this case, any suggestion for good property manager? Any idea about who will be responsible if there will be any illigal activity in home through tenant? (Property Manager OR Owner?).
Once assign the property manager, What are other problems which owner has to deal with property manager or tenant?
Quote:
4) Look for tenant who is ready for rent to own option.
In this case, do you still suggest to hire property manager for 3 years?
Can we make special contract with tenant/buyer? (like, he owns the home from Sept 2012 and he is 100% responsible for any kind of maintainance/upgrade (including furnace and major appliances ...) . So, we do not need to hire property manager?
Quote:
5) Any other options?
For your information.
1) It is the townhome and today's price is about $310K. We think it will be easy to rent or sell as of today. Don't know about condition after 3 years?
2) Brand new home. Constructed in 2010 and includes Tarion Warranty.
Thanks,
-----------------------------------------------------------------
Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thank you very much for detail answer.
I was thinking about panelty will be very high but now I realize that it should not be because I have lower rate of mortgage.
Thanks Again.
-----------------------------------------------------------------
Success is Never Ending and Failure is Never Final.
Check with your lender if you can transfer your mortgage to the new buyer. In that case if the then Mortgage rates are higher than your rate, the buyer will be more than happy to assume your mortgage which is at a lower rate.
Advertise Contact Us Privacy Policy and Terms of Usage FAQ Canadian Desi © 2001 Marg eSolutions Site designed, developed and maintained by Marg eSolutions Inc. |