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Bangalore : Buying a new house and selling old house

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Bangalore : Buying a new house and selling old house

Last updated: April 13 2017
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  • Bangalore : Buying a new house and selling old house

    I have a property 3 BHK apartment in Bangalore, bought in 2011 for 27 lakhs. I am currently staying in this property. I want to sell the house and buy a new house. The current value of the property is 38 lakhs. The bank loan is with ICICI bank for 20 lakhs.
    I want to buy a new property and sell the property i am staying right now. The property i want to buy is costing around 48 lakhs. What will be my home loan liability if i sell the current property at say 38 lakhs and buy the new property at 48 lakhs? Considering my current home loan is adjusted with the new home loan.
    Remaining outstanding with the current loan is 17 lakhs.
    The new house will have a possession in next 3-4 months. It may be difficult to have a burden of 2 home loans, paying down payment & registrations would be additional burden which i may not be able to easily afford. How do i go about it, selling the old house and buying the new house?
    Last edited April 12 2017, 12:52 PM.
  • #2

    #2

    Re : Bangalore : Buying a new house and selling old house

    When you sell current home at 38L, you still have loan outstanding of 17L. So net cash in hand is 21L. To buy a new home worth 48L, you need a loan of 27L. So your new home loan liability will be 27L.

    If you are sure you want to buy the new house, then sell your current home first. Only then go ahead with new home purchase. If you decide to go ahead with 2nd home purchase, and if sale of current home doesn't happen as quickly as expected, then you could be saddled with a huge EMI.

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