Reply to anyone knows what's going on with this CCDC listing?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I rent a 1950 unrenovated house in CCDC. This is a larger 3/2, but I would say $4500 tops for rent. Renters don't like unrenovated spaces. [b]$7950 probably covers the mortgage and taxes. [/b][/quote]

$7950 covers mortgage and taxes on a $1 million mortgage, so that would have required a down payment of approximately $650,000. Even assuming that's the math that the sellers are using, it still doesn't really work, since monthly interest on that $650,000 in a risk-free money market account is about $2500. So really, the sellers would need more like $10,500/month just to break even if renting it out.

In short, this market is brutal if you end up buying then need to rent it out or want to resell. Prices are just way too high to make it work.[/quote]

You are taking into account the opportunity cost of the downpayment! I rarely see people do that.

[b]There is also the tax deduction from mortgage interest, which may make the numbers work better[/b].[/quote]

This is not as great as it used to be.  Buyer can only deduct the interest on the first $750K of their loan amount.  Assuming 20% down that means the interest on remaining $610K is not deductible.  [/quote]

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