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Updated about 10 years ago,

User Stats

20
Posts
4
Votes
Steven N.
  • Contractor
  • Bend, OR
4
Votes |
20
Posts

Explaining to my wife how this is a bad deal

Steven N.
  • Contractor
  • Bend, OR
Posted

I apologize ahead of time for the way I lay this out as it will be amatuer, because I am a amateur. Also for most likely leaving some numbers out you all need to help me out. We would occupy this property for a year and be moving to the US in late fall 2015. 

This property is in Norway. Centrally located near the shops and public transportation, and schools. check check check. 

I will be converting all the $ amounts USD as of exchange rates today.

678sqft 2Bedroom 1bath apartment. In great shape.

Asking price: Now this is where it is a little confusing for me. The actual apartment asking price is $100,000 (630,000nok) which is what we would pay to get into the place all cash. But immediately there is a monthly payment due on a loan which is assumed upon purchase for the actual Apartment Building, which is merged with other expenses for the apartment; water, garbage, television and internet(upgradeable naturally) building insurance, janitor services, snow removal, and overall grounds upkeep, and other maintenance.

This payment is $1040 (6,558.00kr) per month. This loan is $152,952 (963 598kr)

All apartments are like this in Norway. What is strange (unverified) is my wife said we cannot pay this portion off early.

So I lump this loan with the asking price of the apartment for a total of $252,952.

Upon moving out, and attempting to turn this into a rental or selling; Potential Buyers and Tenants must be approved by the Apartment Building Board. 

More Problems: No property management company to speak of. In my search I have yet to find one that actually is a 100% service. Several will let you list your property on their rental sites for a fee. So living 6000 miles from this property already seems a deal breaker.

Plus sides : There are no available rentals in this property's town. None. But there are several houses for sale, but no other apartments. This area is desirable. Comparable apartments rent for  $1507/month (9500kr)

I plan on making a few calls on Monday to get some clarifications, but my wife is really pushing me for this property. Open house is next week also.  

Thanks for your time!

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