# Selling in NS to rent in ON?



## Sixth_Circle (Nov 22, 2010)

My wife and I are considering a move from Halifax to the GTA. If we sold our house for current market values, we could likely get $215-225K and pocket approximately 130K after mortgage payback and fees.

We want to live in Mississauga, preferably around Square One and City Centre area (Mavis Heartland area a close second). There are plenty of condos renting for $1200-1600/month, so renting looks much more appealing than buying at this particular time. Our plan is to invest the proceeds and wait for the right property or opportunity to come along, maybe a time line of 1-2 years. This would give us a chance to get settled and figure out what we really want.

Now for the dumb questions - where would be a good place to park our proceeds to try and capture some additional growth while we rent? Also, would we have to pay taxes on the profit of our NS residence if we do not immediately roll it into another mortgage?

Lastly, for those who might live in the area, is the Square One area still in demand? Any drawbacks or caveats we should be aware of? (We lived in Hurontario/Burnhamthorpe area several years ago but things have likely changed since then.)


----------



## Wealthy1Day (Aug 30, 2009)

First, very smart idea to rent first and not rush into buying until you live in the area and take your time making a purchase decision.

Since your time line is only 1-2 years, you will want to ensure that $130K is in a guaranteed investment. Interest rates might be low, but the spread between a 2% return and a 2% loss is too high to take any risks over such a short term. 

If this is your principal residence you're selling, you won't be paying any capital gains tax.

I live in Toronto, not Mississauga, but when I think of Mississauga I always consider the Square One area as a desireable place to live. It's also been experiencing a condo boom recently. I'd recommend it. But someone more knowledgeable of Mississauga may offer better insight.

Best of luck with your move!


----------



## iherald (Apr 18, 2009)

I agree that you should rent and see if you like the area. I also live in Toronto but the Square one area is nice. I'm not sure how it is for parks and pedestrians, but that might not be an issue for you.


----------



## Sixth_Circle (Nov 22, 2010)

Thanks for the replies, I appreciate it. 

We're stuck in suburban hell right now. You have to drive 5-10 minutes just to get to a grocery store, and the decent shops, restaurants, cafes, services, etc, are located 20-30 mins away in Dartmouth or Halifax. You have to drive everywhere.

We see no immediate indications that the economy or standard of living will improve here, so considering cashing out and going someplace that will give us less housing for our buck but also has a heartbeat. Yes, our mortgage is cheap and we could likely pay it off in less than 10 years. But we're not sure if staying here will have any other benefit. Okay, maybe the traffic is easier to deal with ;-)

After almost 10 years of being a homeowners, we're tired of shoveling snow, yard work, and dealing with the never-ending repairs and maintenance (roof, water heater, etc). The novelty wore off after a couple of years. We are get up and go types, no kids, and just want to live somewhere with walking access to shops, services, and a good cup of coffee. Square One seems to have it all, even the library, transit hub, and movie theatres are mere steps away. And it's the GTA, always a focus for business and culture. 

Toronto itself is just a bit too busy for us, so Mississauga seems more our speed. Plus we've lived there before so know what to expect. If it wasn't for a family situation that brought us back to these parts, we'd likely still be there.


----------



## NotMe (Jan 10, 2011)

"We're stuck in suburban hell right now. You have to drive 5-10 minutes just to get to a grocery store, and the decent shops, restaurants, cafes, services, etc, are located 20-30 mins away in Dartmouth or Halifax. You have to drive everywhere. We are get up and go types, no kids, and just want to live somewhere with walking access to shops, services, and a good cup of coffee."

To be honest, I don't think of Mississauga as escaping from suburban hell, rather a frying pan / fire situation. It really sounds like you're describing Toronto proper, especially when you mentioned culture, walking access to shops, etc. Be able to walk to a mall and being able to walk to different shops seems very different to me. Actually to be honest, I thought of Yonge/Bloor or Yonge/Eglinton when you were describing what you wanted. 

Disclaimer: I'm a native Torontonian and therefore biased. But I will say traffic will definitely be much worse than you remember from 10 years ago.


----------



## Sampson (Apr 3, 2009)

Sixth_Circle said:


> where would be a good place to park our proceeds to try and capture some additional growth while we rent?


The bank.

Ask yourself this simple question,

If you lost some of your down payment and had to delay your home purchase by 1,2,3-5+ years, how would you feel?

If you don't want to risk not being able to buy, then don't subject your monies to any risk.


----------



## Sixth_Circle (Nov 22, 2010)

NotMe said:


> To be honest, I don't think of Mississauga as escaping from suburban hell, rather a frying pan / fire situation. It really sounds like you're describing Toronto proper, especially when you mentioned culture, walking access to shops, etc. Be able to walk to a mall and being able to walk to different shops seems very different to me. Actually to be honest, I thought of Yonge/Bloor or Yonge/Eglinton when you were describing what you wanted.
> 
> Disclaimer: I'm a native Torontonian and therefore biased. But I will say traffic will definitely be much worse than you remember from 10 years ago.


I understand, but where we live right now you have to drive everywhere. There are no major retail stores, coffee shops, malls, or even a Home Depot within 20-30 mins. And transit is not great at all. Believe me, Mississauga is the Big City compared to this, and besides it's own amenities it has 20-30 min access to Toronto for major sports and entertainment, not to mention practically every flavour of culture imaginable. And an airport that actually flies to destinations, not just other hubs. 

The Square One area is ideal for us as we are basically just grab a coffee and stroll a mall kind of people. And the Heartland area is only a short drive away if we need Costco, Future Shop, etc. I work from home and my wife takes the vehicle, so it'd be nice to be able to have access to foods, services, etc, within easy walking distance, especially on sunny days.

I guess we want to be close to the heartbeat, but not buried deep in the heart itself.


----------



## Sixth_Circle (Nov 22, 2010)

Sampson said:


> The bank. Ask yourself this simple question, If you lost some of your down payment and had to delay your home purchase by 1,2,3-5+ years, how would you feel? If you don't want to risk not being able to buy, then don't subject your monies to any risk.


Exactly. I was thinking of using a portion to top up RRSPs and TFSAs, then parking the rest in a short-term GIC or something.


----------



## NotMe (Jan 10, 2011)

gotcha

I'm just glad your renting, you may find your expectations a little off, but it may also suit you to a T. Hope you find it!

But Mississauga is in no way 20-30 minutes from downtown Toronto. Maybe 50 minutes (and yes you can take public transit, but remember many sporting events end after go trains finish running too). 

I'm just voicing an opinion, it's worth what you paid me for it... 

http://www.thestar.com/news/gta/tra...5--what-to-do-as-gta-driving-times-get-longer


----------



## I'm Howard (Oct 13, 2010)

The major consideration needs to be an easy commute to your place of business, then I suggest you explore alternatives that work.

I am in the camp of the Young and Easy, Mississauga might be a good choice for an affordable house to raise kids, but two people who enjoy activity, TO all the way.


----------



## marina628 (Dec 14, 2010)

I probably would pick Toronto over Mississauga as well ,we left Brampton 10 years ago because of the traffic .I rather drive to Toronto than Mississauga any day.If you rent a condo with parking you have so many experiences and cultures at your doorstep.We lived on Prince Arthur Avenue from 1997 -1999 and kept the condo for a few years just to enjoy going downtown on weekends.
I am originally from Newfoundland so can understand the attraction of GTA


----------



## Sixth_Circle (Nov 22, 2010)

We've decided to postpone a decision on moving until early 2012, when our current mortgage comes up for renewal. As things are stable right now as far as jobs and finances, this will give us a year to think things over, create a plan, and also gauge the impact of the coming RE crunch, which is coming big or small but coming nonetheless. We're on a -0.9% variable right now (which is sweet), expecting higher rates by renewal time. How much higher is anyone's guess.

Thanks everyone for your thoughts and comments.


----------



## kubatron (Jan 17, 2011)

Sixth_Circle said:


> Thanks for the replies, I appreciate it.
> 
> We're stuck in suburban hell right now. You have to drive 5-10 minutes just to get to a grocery store, and the decent shops, restaurants, cafes, services, etc, are located 20-30 mins away in Dartmouth or Halifax. You have to drive everywhere.



If you are stuck in suburban hell, there is no greater hell in the GTA for the suburbs than misery-sauga, err, mississauga.

none greater.

yes you have those things walking distance. however you're crossing 6+ lanes of traffic to get there. we're not talking quaint and cozy in the square one area. it's geared for traffic exclusively, people are an afterthought.

compared to the 20-30mins drive, you're heading into the right direction. why not consider port credit instead? also in misery-sauga, but in a much better part of town, close to the lake, and on lakeshore which has a "quaint" and cozy feel.


----------



## kcowan (Jul 1, 2010)

kubatron said:


> ...why not consider port credit instead? also in misery-sauga, but in a much better part of town, close to the lake, and on lakeshore which has a "quaint" and cozy feel.


I think Port Credit, Oakville and Burlington are in a different league of home ownership than Mississauga.


----------



## Sixth_Circle (Nov 22, 2010)

Lately we've been tossing around the idea of selling our house now and renting a condo in the city. We could then use our current equity to top up retirement funds and stash the rest of the cash for either a rainy day fund or a future down-payment, should we decide to buy back in or move.

It appears that the market in the Halifax area is either correcting, backsliding, or stabilizing. We don't expect properties to rise in value to the extent they have been for the past few years. We also don't want to spend the next 8-10 years in this location just to be mortgage-free. Interest rates are only going to go up in the foreseeable future, along with energy, food, and utility costs. It's possible that with so many boomers here, the market might soon be saturated as boomers downsize and debt-laden people sell to get cash as the banks are no longer offering wheelbarrows of dough based on "paper equity" to anyone with a pulse.

It makes no sense to purchase a condo as current prices are way more than what we are paying now and the extra monthly fees, which range from $200-600, only adds more overhead to monthly costs and might make it difficult to sell should we have to move quickly. We could rent a 1400-1600 sq/ft 2 bedroom + den for $1200-1500/month, with heat, hot water, and electrical included (plus in-suite laundry). We like to travel so the security aspect of an apt is appealing, as is the freedom from home maintenance and it's substantial time and money requirements.

Living in town, within easy walking distance to food, work, and entertainment, is very appealing compared to our current suburban lifestyle. Yeah, renting seems like pissing money away, but we also feel like we are pissing our lives away by staying here. Besides, if the market starts to pick up again we could always buy back in. 

Has anyone else ever gone from ownership back to renting? I guess not as the RE market has been good in most areas (at least until recently) and most folks here are in RE-crazy places like TO and BC. I know the investor's mindset is to always own but sometimes it seems that renting might be a better option depending on circumstances. 

Am I thinking this through logically or am I missing something? Any thoughts and opinions are welcome.


----------



## m3s (Apr 3, 2010)

Personally I think RE is overrated as an investment. It's a lifestyle choice not an investment, and clearly it's not the lifestyle for you. The main financial advantage to owning RE is that it forces undisciplined sheeple to invest and save more than they would.

I think the RE bubble is driven by greed and lack of understanding of debt/investments. Everyone raves about how great the RE growth is, but do they not realize you have to live somewhere, and we're all just paying more interest to the banks?

Sheeple are amazed that a house can double in value in 10 years. Considering the costs, that's pretty poor ROI imo. They wouldn't consider leveraged investing in anything else, but a house is fine? Again you have to live somewhere, it's not an investment choice imo.

People say your net worth doesn't grow as fast if you rent. I think that has more to do with the discipline to save and invest that rent/own. Most people who rent will not invest the money they would have built in equity or spent on repairs. That said a house is well worth it, if you prefer to live in one!


----------



## kcowan (Jul 1, 2010)

We have done both. Went from ownership to rental in Canada and from rental to ownership in Mexico. In each case it was a financial decision based on our lifestyle. We no longer borrow any money so leverage was not an issue.


----------



## gullchasedship (Mar 12, 2011)

*Check out Hamilton!*

If you're coming from Halifax, you should check out west Hamilton. You'll probably find what you're looking for amenities wise, and you'll get a lot more bang for your buck in the RE market.


----------



## financialnoob (Feb 26, 2011)

Sixth_Circle said:


> Lately we've been tossing around the idea of selling our house now and renting a condo in the city. We could then use our current equity to top up retirement funds and stash the rest of the cash for either a rainy day fund or a future down-payment, should we decide to buy back in or move.
> 
> It appears that the market in the Halifax area is either correcting, backsliding, or stabilizing. We don't expect properties to rise in value to the extent they have been for the past few years. We also don't want to spend the next 8-10 years in this location just to be mortgage-free. Interest rates are only going to go up in the foreseeable future, along with energy, food, and utility costs. It's possible that with so many boomers here, the market might soon be saturated as boomers downsize and debt-laden people sell to get cash as the banks are no longer offering wheelbarrows of dough based on "paper equity" to anyone with a pulse.
> 
> ...


I think it's standard to suggest buying instead of renting, but every situation is different, and if it makes sense for you, then go for it. These decisions are not just about equity and maximizing money, but also comfort levels, time frames, and lifestyle decisions. 

In your OP, you mentioned a year or two of renting and looking for the right opportunity. There's nothing wrong with that so long as you're comfortable with that decision. Flexibility comes with a price, and I think that's a pretty low price to pay in Toronto's bizarro housing market. Better to wait for the right opportunity than feel pressured into something you're not entirely comfortable with. You can always get back in at a later time.


----------

