Author Topic: Sell and Take the Hit, or Rent and Bleed Cash? And What about the VW Diesel??  (Read 1538 times)


  • 5 O'Clock Shadow
  • *
  • Posts: 7
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??


  • Pencil Stache
  • ****
  • Posts: 592
  • Age: 34
  • Location: WI
If your GF is planning on moving already, why don't the two of you move into the condo you already own, and she can pay you a portion of the rent?

Regarding the car- sell it for what you can get & buy something else for cash, IMO.


  • 5 O'Clock Shadow
  • *
  • Posts: 7
Thanks Turketron - Her place is better located for both of us to get to work (she walks and I bike), so moving into my place isn't in the cards, as she'd have to either drive or take public transit to work (a nightmare in this city).  It's also much cheaper for both of us to split her rent than my mortgage.