# Double Ups or Save for The Next Step



## rl1983 (Jun 17, 2015)

Just need some input, 

I'm not too happy where I currently own, it's too busy and in the recent past, a lot of violence by gangs. I've had my eye on living in a certain area for at least ten years. I've been putting an extra 10 percent away each payday to fund a down payment to get the hell out of here, but with interest rates the way they are, would it be more logical to put that down on this place and then when the time comes, get a subject to financing?


----------



## Rusty O'Toole (Feb 1, 2012)

Don't buy a house you don't want especially in a bad neighborhood. 

It is possible to buy with as little as 10% down.


----------



## rl1983 (Jun 17, 2015)

Rusty O'Toole said:


> Don't buy a house you don't want especially in a bad neighborhood.
> 
> It is possible to buy with as little as 10% down.


I bought in 2011. It was brand new, as was the area, but recent shootings and the what not, I've had enough.


----------



## Spudd (Oct 11, 2011)

I don't know what rate you have on your mortgage, but I would say if the mortgage rate is higher than what you can get on a savings account (highest I know of right now is Tangerine @3% till end of Nov), then put it into the mortgage. You can use the equity in your current house as a downpayment on the new one. If your neighbourhood is a bad one, I would recommend selling your home first and then buying the new one, since you can't be sure how quickly the house will sell.


----------



## rl1983 (Jun 17, 2015)

Spudd said:


> I don't know what rate you have on your mortgage, but I would say if the mortgage rate is higher than what you can get on a savings account (highest I know of right now is Tangerine @3% till end of Nov), then put it into the mortgage. You can use the equity in your current house as a downpayment on the new one. If your neighbourhood is a bad one, I would recommend selling your home first and then buying the new one, since you can't be sure how quickly the house will sell.


My variable rate is currently at 2.13%. That's a good idea, on selling first. Might be I end up renting for a bit but it's probably worth it in the long run.


----------



## Rusty O'Toole (Feb 1, 2012)

If you bought in 2011 you should have some equity by now, your down payment + appreciation. The usual thing to do would be to sell your house and buy another one with your equity as down payment.


----------



## rl1983 (Jun 17, 2015)

Thanks for the input Rusty. I've been thinking about holding onto the apartment for rental income and use HELOC for downpayment, but if I'm paying off the mortgage, how is the HELOC going to get paid off. I'm not sure if it's doable...


----------



## CalgaryPotato (Mar 7, 2015)

Where do you live? Remember how ridiculously safe Canada is. We live in a time that is safer than any time ever in history, yet we also live in a time with 24/7 media pushed to us. A little bit of crime gets a lot of attention.

I live in the most dangerous area of Calgary and have for the past 13 years. I pay significantly less for my house than I would on any other side of town this close to downtown. And my community is quiet and most of the people are middle to upper middle class. We have a slightly higher crime rate than other areas of town, but murders happen all across the country from the poorest to the richest areas.


----------



## rl1983 (Jun 17, 2015)

CalgaryPotato said:


> Where do you live? Remember how ridiculously safe Canada is. We live in a time that is safer than any time ever in history, yet we also live in a time with 24/7 media pushed to us. A little bit of crime gets a lot of attention.
> 
> I live in the most dangerous area of Calgary and have for the past 13 years. I pay significantly less for my house than I would on any other side of town this close to downtown. And my community is quiet and most of the people are middle to upper middle class. We have a slightly higher crime rate than other areas of town, but murders happen all across the country from the poorest to the richest areas.



Just outside of Vancouver. Surrey to be exact.

I do agree crime happens everywhere, some areas seem to be more crime ridden. My reasons for wanting to leave is partially to do with crime, but also, moving on to the next step ( townhouse etc ) and living in more of a quieter neighbourhood.


----------

