Author Topic: Condo Mortgage Debt Is the Stone Around My Neck  (Read 426 times)

CalmIron

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Condo Mortgage Debt Is the Stone Around My Neck
« on: October 11, 2020, 07:26:36 PM »
I'm a single person who bought an apartment-style condo in Calgary 6 years ago. For 3 years, I was able to share with a roommate who covered almost half the mortgage and condo fees. The market changed and now my condo is worth $90,000 less than I paid for it, I haven't found a roommate in 2 years, my condo fees shot up and I might lose my job. I did my best to pay down the mortgage fast, but if I sold now I would lose at least $20,000. If I left, I could not rent out the place for the $1600/month it would take to cover the mortgage and condo fees.

Please help me with ideas for generating income or getting rid of the condo. Is there any way I can use the condo to make money? I am open to all ideas! Thank you for your help!

YttriumNitrate

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Re: Condo Mortgage Debt Is the Stone Around My Neck
« Reply #1 on: October 11, 2020, 07:46:10 PM »
Taking a look at Kijiji, $800/month seems to be the very top end of what people are asking for renting a room in Calgary. Try lowering your asking price for the room.

CalmIron

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Re: Condo Mortgage Debt Is the Stone Around My Neck
« Reply #2 on: October 11, 2020, 08:09:41 PM »
I had the room listed for $550 July-Sept on Kijiji and Rentfaster. Only got 1 taker and didn't accept her as she seemed really "off." Thank you for responding so quickly, though! Much appreciated!

Dicey

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Re: Condo Mortgage Debt Is the Stone Around My Neck
« Reply #3 on: October 11, 2020, 10:18:46 PM »
Work your personal networks to find renters. I had great luck in the olden days posting notices in the Grad Student Housing office at UCLA, which was nearby.

Unfortunately, yours is a cautionary tale, and a good reason NOT to prepay your mortgage. Also, you haven't lost actual money yet, you've lost perceived value. Lots of people in the US walked away from homes in the Great Recession because their homes weren't worth what they paid, only to see housing prices come roaring back.

Case in point, with actual numbers. One of DH's colleagues overpaid for his house in 2007. It was $820K, they've just listed it for $1,068k and RedFin says it's a "Hot Home", which typically means they'll get over asking.

So what you might do is adjust your thinking, or think out of the box. Look for roommates in other places. How much of a negative would it be if you rented the whole place out? Can you adjust your other expenses so the payment seems less burdensome? You could also try to get a job that pays more or find a side hustle. All of which are better than selling for a loss, IMO. Allowing yourself to think of this as a millstone is a trap set by your own mind.

I'm not in Canada, but if it's possible, could you refinance while I still have a job if you can get a lower interest rate or pull out any equity? If you put enough down originally, you might be able to get some of what you prepaid back.