QUOTE (Charly @ Jan 24 2010, 04:20 PM)
Thank you everyone for your insight.
I should have been more specific. I am aware my time frame should be five years or longer. I purchased my home in 2004. My game plan has always been to move out of Calgary eventually and I am coming closer to that time frame now (2-3 years out).
My house is a single family dwelling - 2 beds, 2 baths, single garage, located Inner City, excellent access to public transporation, several blocks from the newly proposed West LRT (I am in Killarney area)
The house was completely renovated years ago. It was professionally landscaped as well.
My options are to
1) rent it and purchase my new home (BC Coast- North Van Island)
2) take the money from the home and purchase my new home on North Van Island
Renting is not really something I have ever done. Truthfully , I would rather just sell and take the capital.
As for the advisor, he believe stocks and real estate will plunge and that NOW is the time to sell all and buy bonds. (not too keen on this, nor his advise!)
Comments!
You should ask your advisor if he has sold his house and liquidated his stocks in order to buy bonds. If you really want to know what he believes check out his own portfolio rather than the products his managers are pushing him to sell. He knows all about your portfolio after all!
With respect to the transition you are planning you have three questions you should answer before deciding on a course of action
1. What does your north van place look like price wise and how often do properties that suit your taste come available? This is where your money is ultimately going and therefore this is the market research that should take precedence.
2. How important to you is your lifestyle right now (or for the next 2-3 years) when compared with your envisioned north van lifestyle? If you sold today and rented a place for the same monthly cost is it worth $1 extra to you in Vancouver? $10,000? $50,000? Putting a number to this is the hardest thing about trading up but is really what it all boils down to.
3. Do you have a good grasp of the variables in your own 'transition equation'. Things like what your place would sell for now, how much you could rent it for now, do you have a payout penalty on your mortgage? Can you port your mortgage and if so what are the timelines you have to work within for bridge financing, fixed vs. variable and 1yr vs 3yr vs 5 year terms, how much are realtor fees, what is rent like in north van, do you need to budget for renovations on the selling and buying end and ultimately what will your new monthly housing cost be when you are in vancouver sitting in your recliner with a drink in hand?
The first two you can figure out for yourself. The last one you need to put some experts to work for you. Get a good realtor in Calgary (hint hint
) and also in north van and get talking with your current lender to put some fixed numbers to some of the variables. You will find this will simplify things for you immensely and you will be able to see the potential impact of any market shifts on your own personal situation much more clearly.