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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Matte on July 13, 2013, 12:11:43 PM

Title: Housing dilemma
Post by: Matte on July 13, 2013, 12:11:43 PM
Having trouble with this one.  Wondering if I could get ideas/advice.

I bought a house when I was 20, 410k, in maple ridge bc.  My down payment was my student loan, I essentially bought it zero down.  The basement Is rented for 900/month.  Right now the house is worth about 450-475k and I owe 350 on it.  My commute is 30-50 minutes to the city (wich we would never buy or live in).  My wife's commute now is 30-40 mins to another suburb (langley) that she likes more and is closer to her family and friends.  We spend about 120 a month on the toll, plus gas, she hates her drive and wants to move.

I am torn on what to do, I make 130k, she makes 25k, I really don't want to sell and lose 20-30k on real estate taxes and fees. 

The house we have now would be a perfect rental, highly cash flow positive and in an area rated to be one of the best for property investing in the country.  Buying another house would be tough since Canada's 20 percent down on a second property rule.  And not to mention I'd owe like 700k on mortgages. 

I'm looking for ideas/insight, the way I see it is yes the commute sucks but the money we make off our suite covers it, and I never want to take the hit on real estate tax and realtor crook fees to move.  My wife thinks more of when we have kids and just likes that area more.
Title: Re: Housing dilemma
Post by: Katnina on July 13, 2013, 12:23:27 PM
How much would it be to rent a place either closer to your work (not necessarily in the city) or close to your wife's work?  Would basement rent + your living area rent > rent in either place?  If you don't have kids yet, why not rent a 1br aptmt and save your $ up for a down payment? See if you like living in Langley or wherever by renting, and that allows you to build up more of a stash for a down payment.
how much would you get in rent for your living area?  If it would make a perfect rental, i say go for it and rent out the entire house. 
Title: Re: Housing dilemma
Post by: Matte on July 13, 2013, 12:49:36 PM
We thought and have talked about the renting thing.  Not too keen on we plan to have a family soon and just really want to settle.  I also sell and part out cars out of ny house for a side income of aroubd 10k a year, plus wehave a dog,  not ideal renters.  Financially it could make alot of sense and we wouldn't be driving our lives away.  But in reality it's not a ton better, right now we have 14 years left on the mortgage, and with the lump sums we have been putting down it could be paid in 8-10 years.
Title: Re: Housing dilemma
Post by: Katnina on July 13, 2013, 12:57:35 PM
What about renting a house in that case?  I am a landlord and I have no problem renting to tenants with dogs.  How much would it be to rent a house, even just for a year- it would give you a chance to scout out the new location to see if you really want to settle there, and, if rent <what you get in rental income from your house, you come out ahead and can either plow that + commute savings into your current mortgage or use it to save for a down payment on a new place.
Another option would be to take out an equity line on your current house to fund a down payment, but as I am a super debt-averse person, this is not something I would consider.
Title: Re: Housing dilemma
Post by: girly mustache on July 13, 2013, 05:44:45 PM
It sounds like you have a great deal on the house - if your wife is making 25k/year and you are about to have a family does it make sense to move closer to her work? Your house sounds like a great deal - I'd hold on to it unless you can use proceeds to pay down a separate house purchase  in an area you want to raise a family. You're in an awesome financial situation - whatever you decide try to keep you self well into the black as you are now.