Help me decide thanks

[irf77]

Aslamoalikum and good day all

I had purchased a one bedroom apartment in international city via 90% financing in 2006.

Property purchase price 409 K
down payment 50 K plus
Total loan amount 368 K over 15 years

In 2009, I made 70 K balloon payment,

As of 2011 Nov, loan outstanding is 240 K, property current value approx 240 K

Rent income so far 220 K

Loan payment so far to loan company 350 K

So If I exit today I lose around 130 K but can get rid of loan with nothing to be paid from pocket.


Current rent is 25 K per year current loan payment is around 50 K so each year I will pay 25 K from pocket,

So is it advisable to take hit on 130 K loss from past period and on break even sell property and get rid of outstanding loan? or should I hold for some reason.



Thanks in advance. Regards, Irfan.

 

[shazy]

Well thats a question only you can answer if you have the money then why not continue it will be free one day then all the rent is yours, at least it is let out.

But if you in hardship cut your losses and leave. or maybe some family member will help and can become a partner

 

[mschiodtz]

these questions are difficult to answer - do you still have the property?

 

[Rayyan]

Dear Irfan,

I have gone through the same situation and I am happy that I have sold my flat. The good thing was that I did not loose much and did not pay anything from my pocket.
So my advise to you is that if you are not going to loose even now if you sell the apprtment , then its better to sell. Following are the adventages

1. You will not have any more liability.
2. You are able to pay the installements and most of your money till now is going to the interest.
3. The more you delay in settling this will have impact on you.
4. You still have to pay almost 8000 AED to Nakheel for Builiding structure maintenace.
5. All other maintences within the flat is still your resposnibility.

So my friend , i persoanlly advise that if you can sell without paying anything from your pocket , please go ahead.