- Joined
- Apr 22, 2015
- Messages
- 30
Hi there,
I'm in kind of a unique situation and hoping I can get a bit of feedback and/or advice from some of the members here. I live in Toronto and I'm currently renting an apartment for $1100/month. I'm 51 years old, divorced with no kids, earn $40K a year, and I'm debt free. Before taking my current job about 2 1/2 years ago I was self-employed for almost 20 years. I was surviving and always managed to pay my bills, but I could never save much money, especially after the divorce.
Since I started working full-time I've saved almost $40K, which I'd like to use to get into the real estate market. I'm a very handy guy and enjoy doing renovation work. I also bought my first house when I was 24 and rented it out for few years when I went back to college. So I have some experience with home ownership and rentals.
However, $40K is not enough to get into the market here in Toronto. I don't want to stay here much longer anyway and may be moving back to my hometown to help take care of my elderly mother. There is generally a good selection of properties available there in the $100- $150K range, so I could afford to put 20 per cent down on a single family home, or a duplex/triplex, for an income property or possibly a fix-and-flip.
But here's my dilemma ... I'm thinking it would be better to apply for a mortgage while I'm fully employed, but I'm already spending about 35 per cent of my income on rent and hydro. So I don't know if I'd even qualify for a mortgage on an income property. If I quit my job and move back home, I could live rent-free with my Mom, but then it would be very difficult to get a mortgage unless I can find a full-time job for a year or more. If I go back to self-employment, I can probably forget about a mortgage for many more years.
Sorry for the long post and I know there is probably no easier answer, but is it even worth talking to someone about mortgages right now?
Thanks in advance for any advice.
I'm in kind of a unique situation and hoping I can get a bit of feedback and/or advice from some of the members here. I live in Toronto and I'm currently renting an apartment for $1100/month. I'm 51 years old, divorced with no kids, earn $40K a year, and I'm debt free. Before taking my current job about 2 1/2 years ago I was self-employed for almost 20 years. I was surviving and always managed to pay my bills, but I could never save much money, especially after the divorce.
Since I started working full-time I've saved almost $40K, which I'd like to use to get into the real estate market. I'm a very handy guy and enjoy doing renovation work. I also bought my first house when I was 24 and rented it out for few years when I went back to college. So I have some experience with home ownership and rentals.
However, $40K is not enough to get into the market here in Toronto. I don't want to stay here much longer anyway and may be moving back to my hometown to help take care of my elderly mother. There is generally a good selection of properties available there in the $100- $150K range, so I could afford to put 20 per cent down on a single family home, or a duplex/triplex, for an income property or possibly a fix-and-flip.
But here's my dilemma ... I'm thinking it would be better to apply for a mortgage while I'm fully employed, but I'm already spending about 35 per cent of my income on rent and hydro. So I don't know if I'd even qualify for a mortgage on an income property. If I quit my job and move back home, I could live rent-free with my Mom, but then it would be very difficult to get a mortgage unless I can find a full-time job for a year or more. If I go back to self-employment, I can probably forget about a mortgage for many more years.
Sorry for the long post and I know there is probably no easier answer, but is it even worth talking to someone about mortgages right now?
Thanks in advance for any advice.