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Originally Posted by CoachKandSportsguy
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So for simplicity, house was purchased for $350,000 two years ago, the bond is $30,000 and the current house price is $380,000. Lets use another $15,000 price appreciation for the next year. I list the house for 399,000 sell for 395,000, gain is $45,000 and the bond paid off was $30,000. so you are still saying that I am not getting my bond money back still?
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The selling price of the house is $395,000 and the gain is $45,000 regardless of whether you paid off the bond, that is just the market price.
If you paid the $30,000 bond then your net profit on the house is $15,000.
If you didn't pay the bond then you made about $6,000 in payments on that "rented" money over the course of those three years. You passed the balance of that $30,000 bond to the new owner and your net profit is $39,000.
The house sells for the same price either way. The difference is in how much you took out of your bank account during that time.