Author Topic: Sell/rent/advice?  (Read 825 times)

sasha520

  • 5 O'Clock Shadow
  • *
  • Posts: 26
Sell/rent/advice?
« on: February 17, 2024, 05:07:10 AM »
Married, 38, 2 kids, 1 dog
Own townhouse purchased for 315k now worth 840k outstanding mortgage of 174k
Suburb of Vancouver, BC

We have heard rumblings of some of the units in our complex having foundation issues- but we donít know anything for sure yet (feels risky), complex is 8 years old, roofs have never been replaced. We are worried about a huge assessment coming soon.

We want to spend a good chunk of our time travelling next year (and hopefully every year)

Our initial thought was to rent the townhouse (3200/month) but with the upcoming issues we feel like selling and cashing in would be smarter.

Our plan is to live with my parents/in his parents condo in phx/ travel for a year or so and then either buy a place in a cheaper market, buy something better suited for multigenerational living with my parents, or hope this market has gone down and buy a detached home.

His income is remote and roughly 90k per year, mine I would have to give up to travel but is roughly 60k per year.

We have around 300k in retirement/other savings - no pensions.

Iím just looking for advice. Is cashing out on the housing market a stupid idea? We donít HATE where we live, itís very affordable for us (mortgage set to be paid off in 5 years), but the thought of living in a strata forever and having no control over when things are replaced a our fees go is not a great feeling.

What would you do? I want to be FIRE. But my husband is happy to work for a long time as long as he can stay remote.

Metalcat

  • Senior Mustachian
  • ********
  • Posts: 17578
Re: Sell/rent/advice?
« Reply #1 on: February 17, 2024, 06:46:17 AM »
I own a condo in Ontario, a duplex in New Brunswick, and an SFH in Newfoundland.

I LOVE owning the condo. I don't have control over when and how major repairs are done (well, I did because I was took over as president for the period when all of the major repairs decisions needed to be planned), but I absolutely love that a professional management team takes care of so much of it for me and the work is heavily discounted compared to an individual hiring contractors.

I've had major work done on all 3 units in the past few years and BY FAR the best bang for my buck has been the work for the condo. A 10K special assessment can get me work that would easily cost me 40K hiring it out as an individual.

I also just don't have to stress about the quality of the work because the condo is never dealing with small fry contractors. I don't have to vet them, manage them, I can literally leave for a trip and come back to substantial work having been done properly. It's great.

That's not to say you should keep your condo, it might be ideal to sell, your condo management might be total shit. But I would definitely push back on repairs being done by the strata as a bad thing.

As someone who has dealt with multiple contractors on two other properties, it's a huge pain in the ass to not have repairs professionally managed by someone else and VERY expensive in markets where labour costs are super high.

I spent $16K just having one of my apartment units refreshed. Literally, just cosmetic damage, but it was time consuming cosmetic damage, and I wasn't able to do any of the labour myself last summer, so labour alone cost 12K.

For 10K at the condo, I've had an entire summer of labour working on repairing and replacing concrete. I can't even fathom what that would cost for a private dwelling.

As for whether you should cash out of the property and the area, that's really hard to say. We have a massive housing shortage in the country, so it's very tricky to sell somewhere expensive and find somewhere cheaper unless you are willing to move where people don't want to live.

Where realistically are you willing to relocate? What services/amenities are you willing to give up for cheaper housing??




sasha520

  • 5 O'Clock Shadow
  • *
  • Posts: 26
Re: Sell/rent/advice?
« Reply #2 on: February 17, 2024, 02:57:29 PM »
Sounds like your condo is well managed.

My townhouse has a terrible strata and the management company we have is awful. We paid $1500 per unit to get our white trim painted (105 units total). I

I always think we are getting a bad deal because we are a strata and owning a single
Family home I would be able to get contractors and price shop. When youíre at the mercy of an incompetent strata it sucks.

My only worry is the market will go nuts and weíll never get back in.

Metalcat

  • Senior Mustachian
  • ********
  • Posts: 17578
Re: Sell/rent/advice?
« Reply #3 on: February 17, 2024, 03:08:03 PM »
Sounds like your condo is well managed.

My townhouse has a terrible strata and the management company we have is awful. We paid $1500 per unit to get our white trim painted (105 units total). I

I always think we are getting a bad deal because we are a strata and owning a single
Family home I would be able to get contractors and price shop. When youíre at the mercy of an incompetent strata it sucks.

My only worry is the market will go nuts and weíll never get back in.

I was responding about the benefits that *can* exist owning a condo, not that your particular strata is good.

I was making more of a general statement countering your statement that having less control over repairs is a downside of stratas. It *can* be a major benefit.

As for your larger question, if now is the time to sell your condo, there's nothing stopping you from buying something else if you want to stay in the real estate market as a hedge against rising home prices.

I bought my duplex specifically to prevent being priced out of an area that I want to live in in 3-5 years. That said, my duplex is also a solid cash-flowing rental in the meantime, so that helps.

Freedomin5

  • Walrus Stache
  • *******
  • Posts: 6533
    • FIRE Countdown
Re: Sell/rent/advice?
« Reply #4 on: February 17, 2024, 03:24:51 PM »
As for your larger question, if now is the time to sell your condo, there's nothing stopping you from buying something else if you want to stay in the real estate market as a hedge against rising home prices.

I bought my duplex specifically to prevent being priced out of an area that I want to live in in 3-5 years. That said, my duplex is also a solid cash-flowing rental in the meantime, so that helps.

+1

OP, would it make sense to sell and buy something else now, especially when you both still have incomes and can qualify more easily for a mortgage?

Also, I know ďnever time the marketĒ and all that, but the general consensus seems to be that this year and possibly next years are good times to buy. The real estate market has softened, prices are likely to pick up in the spring, and interest rates are going down a bit according to our mortgage specialist.

Then rent out the place while you travel.

This is the strategy we used. We live and work abroad. We own a condo in Toronto, which we rent out. Last year we bought a townhouse in a smaller and more affordable Ontario city. The timing was important because we are planning to quit our jobs soon but needed our incomes to qualify for a mortgage. Also, if prices continue to increase as before, we would definitely be priced out of the market. We rent out the townhouse, which covers the costs of ownership.

We want to sell our condo but we are waiting a couple years because the market is down now but we are hoping it will pick up again (the Toronto market usually does). The current market isnít favorable to me as a seller but itís great for buyers.
« Last Edit: February 17, 2024, 03:39:13 PM by Freedomin5 »