Welcome!

By registering with us, you'll be able to discuss, share and private message with other members of our community.

SignUp Now!

Want to go back to school . . . which property should I keep?

ramerba

0
Registered
Joined
Sep 22, 2007
Messages
5
Hello,

I live in BC, am not currently a real estate investor but am learning and plan on moving in that direction.

My goal is to leave my current profession and retool by taking 2 years in school (Spring 2008) and still have a mortgage or atleast take the cash and invest in in good quality real estate.

Two Questions:

#1 Is there a mortgage product that would allow me to keep one of the properties while attending school fulltime and borrowing against equity?

#2 Would a good quality mortgage broker be the best person to look at the specifics of this situation in advising me of the options?

Currently I live in a 1 bdrm apt in Burnaby that was completed 1 1/2 years ago. If I sold now, I would likely have around $130,000 in equity. The current mortgage is $930 + tax/strata/hydro ($250).

Second property is a 2bdrm, 2 level townhouse assignment also in Burnaby that was to complete in Jan 2008. They have had construction delays and have changed the completion date to May 2008. (Would like to bail out of my profession around that time). I put a 10% deposit on the property and financed it with extremely low interest rate credit cards. My bank is willing to port/blend the mortgage to the townhouse and the mortgage would be about $1300-1400. I figure to sell the townhouse between now and completion would net between $50,000 - $75,000 (not including capital gains of about $18,000 and dwn payment debt of $35,000).

Thanks for the opportunity to seek feedback here.

Bryan
 

MikeMcCrae

0
Registered
Joined
Sep 3, 2007
Messages
489
You should be able to get a mortgage so you can keep your property. Yes find a B.C. based mortgage broker and work with him/her.
 

RobMacdonald

0
Registered
Joined
Oct 16, 2007
Messages
758
Hi Bryan,

I would certiainly recommend consulting a professional in mortgage financing before you make any decisions with respect to refinancing, selling, quitting your job etc. Once you quit your existing job, the whole financing arena will change and you will have significantly less options compared to when you are gainfully employed. Not only will you have less options, your options for financing may become significantly more expensive. Consulting a mortgage broker that can help you identify and structure a 5 year plan will be a key to your success.

You definitely have some options immediately in your current situation, and you will be able to arrange financing that can help you through the next couple of years. Once you have financing in place, you are able to change jobs, occupations etc., and as long as your mortgage payments remain up to date, the banks will never have a concern.

Your situation is like a chess game, you are already thinking 3 to 4 moves ahead, but how you handle your first couple of moves is extremely crucial.
 

ramerba

0
Registered
Joined
Sep 22, 2007
Messages
5
Thank you Mike for taking the time to respond . . . I will pursue my options.

Have a great weekend

Bryan
 
Top Bottom