- Joined
- Oct 7, 2007
- Messages
- 27
Hi all,
In moving from a cheaper housing market to Victoria and currently renting, I can only afford a 400K condo as primary residence, which I will buy in the next 2 months. So, how to get ahead from that baseline?
Getting ahead from baseline for me/us means getting to a *nicer* condo or even a house (with rental suite) in the same city, hopefully within 1- 5 years. Current value of such a property would be 500k for a condo or 750K for a house.
I assume the market will continue to climb in the coming years. I can also assume income increase of 20K/a, principle paid on first property, and savings of about $1500-$2000/month. Selling the first condo would not be my chosen source of cash because of the advantages of the "buy and hold" strategy over the closing costs.
So the clear major challenge is how to finance the second property under this scenerio. Assuming market value increases of only 10% a year, a 500K condo would be 550K in 1 year. A 750K house would be 825K in one year.
How can we overtake the market without buying outside the city?
Readvanceable LOCs and second mortgages seem far too small to make the leap. Please tell me I'm wrong.
Thank you!
In moving from a cheaper housing market to Victoria and currently renting, I can only afford a 400K condo as primary residence, which I will buy in the next 2 months. So, how to get ahead from that baseline?
Getting ahead from baseline for me/us means getting to a *nicer* condo or even a house (with rental suite) in the same city, hopefully within 1- 5 years. Current value of such a property would be 500k for a condo or 750K for a house.
I assume the market will continue to climb in the coming years. I can also assume income increase of 20K/a, principle paid on first property, and savings of about $1500-$2000/month. Selling the first condo would not be my chosen source of cash because of the advantages of the "buy and hold" strategy over the closing costs.
So the clear major challenge is how to finance the second property under this scenerio. Assuming market value increases of only 10% a year, a 500K condo would be 550K in 1 year. A 750K house would be 825K in one year.
How can we overtake the market without buying outside the city?
Readvanceable LOCs and second mortgages seem far too small to make the leap. Please tell me I'm wrong.
Thank you!