thefinancediaries

How did you lose $150,000+?

Here’s the math:

Buying costs
-Welcome tax: ~$6,000
- Notary fees (purchase): $1,200 + tax = ~$1,380
- Building inspection: $600 + tax = ~$690
- Appraisal fee: ~$350
= Subtotal: ~$8,420

Selling costs
-Realtor commission: $32,500 + tax = ~$37,370
- Notary fees (sale): $800 + tax = ~$920
- Mortgage discharge fee: ~$300
=Subtotal: ~$38,590

Ongoing costs (10 years)
- Property taxes ($5,000/yr): $50,000
- Home insurance ($1,500/yr): $15,000
- Maintenance/repairs (~1%/yr): ~$55,000
- Mortgage interest only: ~$135,000
= Subtotal: ~$255,000

- Capital improvements: ~$30,000 (optional but unlikely to be $0)

Bottom line!!!!!!!!!
Purchase Price: $500,000
Selling Price: $650,000
“Gain”= $150,000
− $8,420 − $38,590 − $255,000 − $30,000 ≈ −$182,010 net LOSS

(maybe 90,000$ if you bought/sold privately and somehow made $0 of improvements)

🥲🥲

more expensive house? probably a bigger loss
selling after less than 10 years? also a bigger loss