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.
