Seeking some advice

[adamturner]

Ill get strait to the point. I own a home in Golden BC With an appraised value of 250,000. I owe 80,000 on the mortgage and my payments are 380.00 per month. In Golden right now i could easily rent my house for 900.00 per month. Taxes and insurance are low in this area and being a home inspector and carpenter the house is pretty nice and is easy to maintain. There is easily some positive cash flow in this house if I rent it

I want to move to Halifax with my pregnant wife, 19 month old son and start a new life for us there, and get into the investment side of real estate.

I have been self employed in Golden for the last four years. I am under the assumption that if i move provinces and want to purchase a house for us in Halifax the banks will not consider my self employed status in BC because I no longer work there, and will consider me to have zero employment history

OPTIONS- Sell house and take money to Halifax and purchase home.

- Keep existing house, rent it and re-mortgage

Ideally we want to have our own home in Halifax because descent 3 bedroom multis are hard to come by.

I have lots of question about how the banks look at a self employed person relocating.

Any advise or info out there would be great.

 

[TodorYordanov]

I would talk to a mortgage broker first and foremost. They can be residing in any province and help you out. There are a number of excellent brokers that post here.

 

[Thomas Beyer]

Option 1: why not re-finance the house, take some equity out .. so you arrive in Halifax with CASH .. issue is long distance management and non-payment of rent ..

Option 2: sell it .. but can you indeed get $250,000 for the house in 2-3 months ? Maybe right now you get only $180,000 as the market is very slow ? main benefit: no taxes payable on gain and no headaches with a house back "out west"

Option 3: in ANY case get a line-of-credit against the BC house so you have options to write a cheque if you need one (say when buying a new house)

 

[RobMacdonald]

Hi Adam,

Do you need the cashflow from your property in Golden to support your day to day expenses in Halifax? Why not use some of the equity to buy further investments? How does this property fit into your long term plans? Can you manage the property, or do you have someone in Golden you can rely on? All these are important things to consider.

If you contact our office, we would be able to arrange a 1/2 phone call to assist you with determing some options.