# Relocating, advice?



## Freedom45 (Jan 29, 2011)

My wife and I (mid-30's) will be relocating from Nova Scotia to the Edmonton area inthe coming months, and are trying to decide what to do with our current home. I'd love any feedback/advise CMF'ers can offer that I may not be considering already.

Home is a semi-detatched, split entry, 1,350sq/ft. 3br/1.5bath. Ocean front property. 
Ten years old. 
Current market value ~$200,000
Mortgage is currently $171,000, @ 2.75%
Comparable homes rent for $1,100-$1,400/mo, plus utilities.
Property taxes ~$2,400/yr
Insurance ~$800/yr
Mortgage payment currently $420 b/w

As you can see, our mortgage/insurance/taxes land us around $1,100/mo combined. Realistically, I would expect we could rent our place for $1,250-$1,300/mo, leaving us with a cashflow of only $150-200/mo. If it were to sit vacant for a few months, or if rates were to rise substantially, that seems like a narrow margin. Family has already offered to "manage" the property if we choose.

We don't anticipate moving back to Nova Scotia in the forseeable future, and if we do, it won't be into this home.

We don't have a lot of debt compared to some ($10k between LOC/CC's), and don't currently have a lot in cash savings (maybe $2k). RRSP's/pensions are currently worth about $70k.

What say you CMF? Sell? Rent?


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## AltaRed (Jun 8, 2009)

Primary comment I would have is NOT to buy in Edmonton until the oil price crisis sorts itself out. That could be weeks, months, or a few years. House prices there are likely to slump if this thing lasts through the summer. 

Also, check with your home insurance company. Insurance may go up if this becomes an investment property.


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## none (Jan 15, 2013)

Managing a house from away is a pain in the but. Particularly with such a pitiful return, it's just not worth the hassle and risk.

Of course you may not even be able to sell your house, the market in Halifax has been in the toilet for a while. Then again, for some reason there was a blip last week.

SRSLY, just sell it and buy REITS if you want real estate exposure. you have to sell it sometime, might as well be now.

http://www.halifaxrealestateblog.net/


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## nobleea (Oct 11, 2013)

Agreed. Sell it and then rent in Edmonton until you decide what neighbourhood you like and settle down a bit.
Since you've stated that you're not planning on moving back to NS soon and if you did it wouldn't be to this home, then it becomes an investment decision. As a standalone investment, this one is not very good. Sell if you can. You might break even after realtor fees and the mortgage discharge.


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## Freedom45 (Jan 29, 2011)

AltaRed said:


> Primary comment I would have is NOT to buy in Edmonton until the oil price crisis sorts itself out. That could be weeks, months, or a few years. House prices there are likely to slump if this thing lasts through the summer.
> 
> Also, check with your home insurance company. Insurance may go up if this becomes an investment property.


Yeah, I'm already thinking along these lines. My employer is relocating us, and we won't be landed, and ready to buy there until April or May at the earliest. Thinking it makes the most sense to hold off on buying until the oil dip shakes itself out.

If we seriously look at keeping/renting, we'll definitely contact our insurer to confirm rates/coverage/etc. Thanks.


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## Freedom45 (Jan 29, 2011)

nobleea said:


> Agreed. Sell it and then rent in Edmonton until you decide what neighbourhood you like and settle down a bit.
> Since you've stated that you're not planning on moving back to NS soon and if you did it wouldn't be to this home, then it becomes an investment decision. As a standalone investment, this one is not very good. Sell if you can. You might break even after realtor fees and the mortgage discharge.


We lived in Edmonton for a few years (about ten years ago), and have a number of close friends there. We pretty much know what area(s) we want to be in, but we're strongly considering renting for the first little while, just to see what happens to housing with oil in the crapper. Thanks for your feedback.


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## banjopete (Feb 4, 2014)

I'd second the gather your eggs and re-assess in a few months if you can. Prices on homes here in Edmonton haven't moved significantly from what I've seen, and the biggest thing occurring (aside from the obvious oil story) is the development of older neighbourhoods where zoning permits increases in density. There are a number of previously sfh moving to split small homes on the same lot or duplexes etc. It's not everywhere but the city is expecting large population growth and densifying the older neighbourhoods to support unsupported infrastructure is part of their long term plan. As it is now young families are on the outskirts where there are few schools and services while the established neighbourhoods are aging up, without kids, and the effects are in line with this demographics shift.

Good luck.


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## 1980z28 (Mar 4, 2010)

Don`t rent to family

Sell and use the cash for ???????

Good luck


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