Sell or get a bigger mortgage?

[magoomba]

We`re looking at buying a primary residence next year in Vancouver.
My question is whether to sell one or more of our properties in Alberta
to finance the purchase or if we should simply carry a bigger mortgage
on our primary residence.

The properties consist of 3 detached houses in Calgary and 3 townhouses
in Edmonton.
Most are cash neutral. Two running cash positive around $200 a month.

 

[Thomas Beyer]

That depends on your PERSONAL situation, namely:
a) level of income
b) comfort with high debt levels
c) likelihood of layoff / sustainability of income
d) cash availability
e) desire to live in a nice property (more expensive, more debt) vs. a smaller not so nice property (lower price or further out and/or lower to no mortgage)
f) length of stay in Vancouver

There is no right or wrong answer here !

 

[RobMacdonald]

It will depend on a number of factors like Thomas mentioned including how the qualification would work. I`d be happy to discuss your options with you. Feel free to give me a call.

 

[magoomba]

QUOTE (ThomasBeyer @ Sep 15 2010, 02:36 PM) That depends on your PERSONAL situation, namely:
a) level of income
b) comfort with high debt levels
c) likelihood of layoff / sustainability of income
d) cash availability
e) desire to live in a nice property (more expensive, more debt) vs. a smaller not so nice property (lower price or further out and/or lower to no mortgage)
f) length of stay in Vancouver

There is no right or wrong answer here !

Thomas, thanks for the reply.
To clarify the situation...
a) $75K but wife is not working right now. She`ll return to work next year. $100K next year
b) would like to put down 20% on the new primary residence (hence the desire to sell other properties)
c) employment is stable
d) cash flow will not change as we are currently renting and mortgage payment will be same
e) plan is to purchase resale townhouse ($500K range) in Burnaby/Richmond and do some renos
f) permanent home more or less

 

[housingrental]

Income to purchase price based on down payment in danger zone.... Not worth the risk!