Funny gal.
I did not feel that was relevant in this particular discussion. The OP is here because he needs to sell his house and is wondering why no interest is being shown. Not sure how an emergency fund discussion solves the problem described.
Funny gal.
I did not feel that was relevant in this particular discussion. The OP is here because he needs to sell his house and is wondering why no interest is being shown. Not sure how an emergency fund discussion solves the problem described.
I'm not sure the OP would qualify for much more of a mortgage for the 2nd house. $75k gross, with potentially have of that going away during wife's mat leave and an already high debt-servicing ratio doesn't leave much room to borrow to buy a BIGGER house.
If you really need a bigger place immediately, rent. Even if you carry your mortgage and rent a place for a few months, the amount of $ pales in comparison of making the wrong choice of selling your house for too low, or buying a new one for too much. That mistake would be tens of thousands of dollars.
I am questioning the $30k car loan... Can't you sell your vehicle and get a gently used one? Buying new is expensive. IMO, new cars and bigger spaces are a luxury not a necessity (generally speaking). Based on wanting everything now, I wonder if you're trying to keep up with Jones' so to speak. You guys need to start thinking about emergency funds, retirement plans and potentially education plans.
Op can forget the 2nd mortgage idea and the rental property idea .I would be doing my homework on what similar homes are being sold for ,are there some improvements that can be done to build up some sweat equity?How much will you be paying for the larger home?The banks may loan you $400,000 with the equity down payment but you really should avoid taking on more debt.
First and foremost, congratulations on your early head start in life, in regards to having a family and buying RE at such a young age. It's never a bad idea being fiscally responsible and the younger you start, the better off you are. Provided you steer clear of some financial traps.
As other posters have suggested, I would separate your wants from your needs. The last thing you want to do is put yourself into financial dire straits with your debt load. You should take many things into consideration before making any moves. What happens to your family income if your wife goes on mat leave? What would happen if one of you were to lose your job? Kids can be expensive. I'm not sure where you live, but if you are from Ontario, you will likely need a 20% down payment for a second residence anyway. Also don't forget what happened in the United States only a few short years ago. We are not immune here in Canada to a housing correction. And if home prices do ease off even 5-15% you will automatically be behind the 8 ball.
One last thing I'd consider is the $30k dollar vehicle. Have you considered selling it and buying something a little less costly? A car is a car is a car. It gets you from point A to point B. I purchased my car brand new in 2005 for around 24k I took 60month loan fortunately I had 0% financing for 5 years. I still have that same car, but I am at the point where it is needing numerous repairs for worn parts etc. How much do you think I could get for my 7 year old car? A few thousand if I were lucky. An automobile is not an asset.
Other than that, take your time and enjoy the process.
Wow i did not think i would get so many responses...i am typing this from my phone so i probably wont get as in depth as i want lol...I guess i did not fully explain my financial situation fully...Me and my wife do not try to keep up with the "jones'" as some would say...We dont buy ourselves new things, we dont buy any of the new gadgets, we by no means are materialistic...I have paid cash for everything in my life including all my vehicles(except the recent truck purchase)..i just got my first cell phone at age 24 because i really didnt want to make payments on a plan...now that i have one i have the most basic package possible...Exactly one year ago my wife and i went out and purchased a lightly used travel trailer which cost $15,000...we paid cash for that purchase...My wife and i and our baby camp every other weekend. It was the best purchase i have ever made..We dont go on big fancy vacations, we go camping and make memories, my trailer is the best purchase my wife and i have made(and they hold there value more so than a vehicle, so i considerate it a asset, which i did not mention in my first post)Now on to the vehicle loan....when you own a trailer, you need a vehicle that will keep your family safe as you are Towing...As well the majority of places we camp at have zero reception which means we need a vehicle that WILL not break down and leave us stranded. Our truck has had to tow us out of two campsites that were hit with unexpected snow storms overnight. I do not regret the purchase at all, i wish i did not have the vehicle loan, however the enjoyment my family gets out of camping is priceless. In my first post i also failed to mention i have $1000 in RRSP's as well as a RESP that we contribute to for our son. In addition my wife and i recently increased our mortgage payments 20 percent(the max we were allowed)in order to pay the principle down. I am sorry if this seems super scrammbled, its difficult to post from a phone lol. I hope i painted a broader picture as to our financial situation. As to all the input i appreciate it(even the stuff that makes me cringe lol) and understandctheir are many smart people on this forum and were all here to help each other.
Ps: TRM i have lurked this site long enough to know all about your rainy day fund/ emergency fund! I totally agree with it.
If no one is coming to look at the place, it's probably the price. If people are coming and not putting in offers it's the property.
Having said that, I agree with the other posters. I don't think you need a bigger house. Kids are so expensive anyways. I live in a two bedroom too so I know how crowded it can get sometimes but reorganizing and more efficient use of space goes a long way.
Landlord Rescue - Real Estate Blog
Just figured i would throw out there my place is 1000sqft....i think the issue is definately price and not the property....the place is the nicest most rennovated place in the area...also the most expensive property on the street...i just dont know if i can afford to drop the price much more as i would like to have a decent downpayment on my next place...Berubeland thanks for your input...i am always intrigued by your posts regarding warrants!Originally Posted by Berubeland
Last edited by michaelman501; 2012-06-04 at 10:59 PM.
I think getting into a bigger place is a worthwhile goal, especially when you plan on expanding your family. I just don't think that it has to happen immediately, especially considering that you currently only have one 8-month-old child. ISTM that you easily have a year or two to take your time and make sure that the transition is a good one.
Posting Permissions
Reply With Quote