Hi MMM Forum, I'd appreciate any thoughts on this:
Problem #1: The Housing Situation
As a single guy, I bought a $300k luxury condo a year ago (pre-MMM, obviously), which I planned to live in, or rent out if my situation changed. Lo and behold, a year later, and I've found myself spending most of my time at my g/f's place, while I dutifully shell out $2100 each month on my empty pad (includes mortgage, taxes, utilities, condo fees, etc.). I'm not sure I want the hassle of being a landlord on a place that will likely only rent for $1500/mth given the current market in Edmonton, but since I owe $270k on the place, selling will likely only net me $10-15k after realtor fees, etc. It might be possible to do an executive rental for $2100/month, but then there's the wear and tear on the furniture, the hassle of landlording, vacancies, etc., and the place still won't cash flow positive. I might be able to stretch out my mortgage to 30 years (currently have 17 years left, making larger payments) in order to reduce my mortgage payments, although there is a cost to this as well.
My g/f is looking to purchase a place of her own in the next 12 months, at which point I'll live with her and either pay rent or, if I sell, contribute to the down payment and split the mortgage payments. I should sell the place, free up the little cash I have, and reduce my future housing costs, right? If I sold and shared a lower priced rental or mortgaged property, I'd have at least $1000/mth left over that I could throw right into savings. This seems like a no-brainer to me, but I've made so many hasty decisions I'm trying to look at this from all angles in case I'm missing something important.
Problem #2: The Vehicle Situation
If you're not already thinking I need a mustachian face punch, then you will after you read this. Prior to buying the condo, my wife and I called it quits. The first thing I did was declare that I was moving out of the province, which clearly required purchasing a $45k Chevy Silverado. I didn't move, and I sure as hell didn't need the Big Stupid Truck (BST). After unsuccessfully trying to sell it privately, I took it to a stealership and traded it in on a 2013 VW Golf - diesel of course. The dirty kind, I found out shortly after. Long story short, I ended up financing $26k at 5% in order to get rid of the BST. The Golf is excellent, however I only use it a couple times a month, so it's sitting in the parkade, depreciating. Should I pay it off in a year and hang on to it indefinitely, or should I try to sell it and buy a used Honda Fit or something much cheaper? Again, I'd be taking a hit on the car sale, but I'm reasonably sure the whole Golf Diesel emissions scandal is going to severely affect how much I can sell it for. <insert face punches here>
Any words of wisdom??
Thanks,
Jetsamflotsam
