Author Topic: Which Housing Option? **Southern Ontario**  (Read 1222 times)

eirual

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Which Housing Option? **Southern Ontario**
« on: August 20, 2015, 05:14:50 PM »
Current scenario: living in a high COL area of the Greater Toronto Area with a $320,000 mortgage. I'm on mat leave from teaching (baby #3), and hoping not to go back. Hubby just finished school and is employed netting roughly $30,000/yr. We're trying to decide what to do once my mat leave is up and we have only one income (52wks in Canada).

Here's what we're debating

A) Stay put
-$36,000 net (+ me doing occasional work netting $9,600-18,600/yr) =$45,600-54,600)
-$320,000 mortgage = $1,600+/mo mortgage for 25yrs
PROS: nice (yet small) house, large lot, family near by, we can enjoy the metal roof, new deck and patio door we've put into it
CONS: lots of working for a long time, from the both of us just to make ends meet; 30min commute for hubby; the city is going to double in size in the next 15yrs (it's already tripled over the past 15) and isn't necessarily in-line with our political views/priorities

B) Cheap townhouse where hubby works
-$36,000 net (plus I'd have the option of doing occasional work if I wanted: waitressing or supply teaching)
-$89,000 mortgage = $1,600 for 5 yrs
PROS: WE'D BE MORTGAGE FREE IN 5YRS!!!, no commute for hubby, sense of community (we'd be picky), amenities close by, I can be home with kids
CONS: maintenance fees/lack of freedom, parking for visitors, little yard to enjoy, no backyard chickens

C) The Middle Ground: cheap house or semi-detached where hubby works
-$36,000 net (plus I'd have the option of doing occasional work if I wanted: waitressing or supply teaching)
-$200,000 mortgage = $1,450/mo for 15yrs
PROS:no commute for hubby, more space/ownership/freedom than with a townhouse, I can be home with kids most of the time, mortgage-free in 15yrs with a chance of property values increasing more
CONS:we probably wouldn't get our ideal house in a good location (those run closer to $400,000), we'd still have a mortgage for a significant number of years

**WILD CARD: in-laws may or may not need our support in their retirement (5yrs). Including a place to live. DH has been putting off addressing the subject seriously with them, but is willing to have that talk with them now. In that case, option B wouldn't work. Option D may then become a possibility too: a bigger house with an in-law suite that they'd contribute towards as well.
« Last Edit: August 20, 2015, 05:31:23 PM by eirual »

eirual

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Re: Which Housing Option? **Southern Ontario**
« Reply #1 on: August 20, 2015, 05:22:47 PM »
I'm also struggling with what we'd do next if we opted for Option B and were mortgage-free in 5yrs with a townhouse. ....would we rent it out as an income property, then look for something more permanent which could then maybe be shared with the in-laws too? would we do cool stuff (including saving) with the boat-loads of money we'd be able to keep?
« Last Edit: August 20, 2015, 05:31:03 PM by eirual »

Gerard

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Re: Which Housing Option? **Southern Ontario**
« Reply #2 on: August 23, 2015, 08:02:44 PM »
How secure is hubby's work? How does that potentially change the weighting of the different factors you're considering? Would you want to live in HubbyWorkTown even if he didn't have a job there?