I currently own a 3 bedroom townhouse, fully paid. It's nice, but I'm paying high condo fees and property taxes for what I get out of it. I could sell it right now, buy a small apartment condo, and have about $140 K in cash, and spend about $4K less a year in taxes and fees. I would have less space, but I'm out of town a lot working this year and don't have a girlfriend. I would eventually like a nice suburban house, but I don't see the point if I'm single. Investing that 140k in index funds/rrsp's would be my plan, and if I ever get married I'd just sell the condo. The only things I wouldn't have space for in a bachelor condo are my home gym and my desk, neither which I really need. Thoughts?
single guy: should I downsize my house?
- Thread starter desert monk
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Do it, except use the $140k to go on an extended binge of sp's, mpa's, and strippers. Dont hold back and live like a king for a few months
Sell!
But instead of buying, thinking of renting. Depending on where you want to live, you can probably rent a nice condo for around 1500. Figure in taxes, condo fees and utilities you're saving around 700-750 a month, so it's like your rent is only 750-800. You can use all that extra money for investments.
But instead of buying, thinking of renting. Depending on where you want to live, you can probably rent a nice condo for around 1500. Figure in taxes, condo fees and utilities you're saving around 700-750 a month, so it's like your rent is only 750-800. You can use all that extra money for investments.
I wouldn't by a condo. The market is oversaturated with them and they are overpriced. The condo market will probably crash in the next year or two. If you can buy a small bungalow. In the outskirts. Or rent out a room to students. You can get $400 - $500 a month for a room.
Buy a van or motorhome and park it at work, you'll save on commuting costs. Rent out your townhouse to escorts, keep the basement as a grow-op.
Plow all your earnings into a campaign to elect Rob Ford's niece for Toronto council. :thumb:
Plow all your earnings into a campaign to elect Rob Ford's niece for Toronto council. :thumb:
The one thing I wouldn't do is listen to people telling you how the real estate bubble is going to burst "in a year or two." They said that 2 years ago. And 2 years before that. And 2 years before that. It's the kind of risk-averse thinking that separates the "men from the boys" in terms of real estate investment.
While I agree that the condo market is booming, what's also booming is the number of people looking to live in the GTA. And a significant chunk of that are the young (especially young females) and immigrants who can't necessarily afford a house.
As in all forms of investment, do your homework and you'll be alright.
While I agree that the condo market is booming, what's also booming is the number of people looking to live in the GTA. And a significant chunk of that are the young (especially young females) and immigrants who can't necessarily afford a house.
As in all forms of investment, do your homework and you'll be alright.
Property bubbles always burst. Always. Throughout history all over the globe. Long term real estate tracks along with inflation. Canada is so far ahead of inflation on real estate it's scary. The easy part is knowing that it WILL correct, the hard part of figuring out WHEN.
That said, BC has already begun the decline and it's only a matter of time before it spreads to the rest of the country. I've heard from more than one source that sales of pre-construction condos has slowed quite a bit recently. It's an early sign of what's to come IMO.
Even if prices continue to rise for the next couple of years, real estate is a horrible "investment" right now because of high transaction costs when you want to liquidate. However in this situation it's more of a place to live than an investment and he's paying cash, so as long as he's comfortable with possibly market conditions then he should be fine if that's the route he chooses.
Wow. You should be a fortune teller. That's pretty insightful.
The question is When, not If. And so far the naysayers have been wrong.
I'd probably downsize but just to explore the other side.......
Have you thought about what you will loose in real estate commission, land transfer taxes and what not. Obviously it is not 140K but worth considering.
Also, if you sell today and later look to move into a larger place. Woudln't it be easier to do selling the townhouse at that point? Most of the profit will be locked up in rrsps and other investments.
Anyways, like I said I'd probably sell and downsize but just talking for the sake of it.
BTW have you considered using it as a rental property? If it is fully paid for their rent could pay the mortgage on a smaller place (maybe),
Have you thought about what you will loose in real estate commission, land transfer taxes and what not. Obviously it is not 140K but worth considering.
Also, if you sell today and later look to move into a larger place. Woudln't it be easier to do selling the townhouse at that point? Most of the profit will be locked up in rrsps and other investments.
Anyways, like I said I'd probably sell and downsize but just talking for the sake of it.
BTW have you considered using it as a rental property? If it is fully paid for their rent could pay the mortgage on a smaller place (maybe),
I down sized four years ago into a new 2100 sq. ft. full paid for bungalow. I enjoy the yard and the feeling of tranquility not having people around you as in any condo. Staying in the real estate market was part of the decision because there is no other investment that continues to grow like single detached housing. Purchased for 369K and resale now about 600K and I am also single.
Good luck.
Good luck.
I am thinking the same thing as I own a detached 3 brm house. No condo fees but the house does require work (what house dosen't). I am probably gonna sell at some point in the future and buy an income property where I will just occupy a 1 or 2 brm single floor.
I'm single and I live in my own detached house in High Park. I wouldn't have it any other way. I enjoy having a house, I enjoy renovating it, the freedom. I don't mind the chores, and shit breaking down doesn't freak me out. I despise apartments, condos, whatever. I don't want to live in a tower building of any sort. Just a personal decision on my part. (Probably because I am not the kind of guy who likes being around other people all the time.)
The market be damned frankly. The market can go up or down all it likes, it really doesn't affect me because I have no intentions of moving. Even if the market were to crash by 50% it really doesn't matter if you view your house as a place to live because if I were to sell and buy another house in another area in Toronto, presumably that house would have crashed by the same amount as mine. The only way that market crashes can kill you is if you live in a condo (say) and aspire to owning a single detached. The condo market crashes by 50% and the single detached home market crashes by 30%. Then you have a problem.
IMHO, the single family home is less prone to market speculation than the the condo market. (I could be wrong.)
The market be damned frankly. The market can go up or down all it likes, it really doesn't affect me because I have no intentions of moving. Even if the market were to crash by 50% it really doesn't matter if you view your house as a place to live because if I were to sell and buy another house in another area in Toronto, presumably that house would have crashed by the same amount as mine. The only way that market crashes can kill you is if you live in a condo (say) and aspire to owning a single detached. The condo market crashes by 50% and the single detached home market crashes by 30%. Then you have a problem.
IMHO, the single family home is less prone to market speculation than the the condo market. (I could be wrong.)
I am thinking along similar lines. The fact is there is almost ZERO detached homes being built in the 416 area code. So I can't see them plunging unless hell breaks lose. But there is an affordability limit. But if a 1 brm condo can sell for 300K a long way from downtown then IMHO my detached home that is more then 2x the square footage should be worth a HELL of a lot more then 2x.
There are some detached single family homes being built, but they are rare. Usually a browfield development, an old factory gets torn down and replaced. For example around St. Claire and Keele, west of Keele they built some single family homes. You'll see the odd townhouse development as well too.
But these are very far and few.
Lots of tear downs, but that is a one for one.
What I have always loved about Toronto is how you have the residential woven right into the inner city. You can be walking up Yonge Street, make a right and you are into a 3 story single family home. Amazing and it works so very well.
now is a great time to sell your house as housing prices may have finally peaked if you look at recent data plus the factcanadians are the most indebted in history. as for RRSP's they kinda scare me if canada ever ends up like greece who knows how high the govt will tax RRSP withdrawals. remember they are tax deferred so you always end up paying the piper. TFSA's are much better the only downside is as of 2012 you can only put in max 20k if you have nothing in it yet, 5k ever year after
