Quote:
Originally Posted by Unregistered
Please don't mention your house/condo/apartment or wtf it as your net worth or asset as long as you haven't paid it off. When you borrow money from the bank it's still bank asset. Once you fail to pay off, the bank will posses it!
|
Don't know the reason for this outburst, but if you have any accounting knowledge at all, even the car you own, with its fast depreciating value is an asset. The net worth is obtained by adding up all your assets and then subtracting the loans (liabilities). Let's say your BTO is secured at $250K, but is close to its MOP, it's value would be set at close to those on the open market say at $500K. Your property asset is thus calculated as $500K. Lets say you only paid $100K, then your net worth is $500K - $150K or $$350K, and not just the $100K you paid.
The bank can only claim the $150K you owe, not the $500K BTO flat you own.