choice between buying a house or 2-3 months travel every year?

[redflag5050]

What would be your option? First option: buying a house and maybe travel on little 1-2 weeks yearly trips to boring locations (Cuba, DR Etc.etc). House poor basically.
Second option: living in a 3 bedroom upper duplex @ $850 all in (Current setup) + 2-3 months yearly vacation to Europe and beyond.

Summer 2011 We did Greek isles, Athens, Rome, Venice and Paris over a 2 months period and we loved every minute of it.

Would love to have your say.

[MrKap]

Isn't this what everyone in parliament does anyways? Both I mean...

[BornRuff]

Sort of requires that you have a life that allows you to get away for that long. I'm sure everyone would choose the traveling option for as long as they are able to.

You never want to choose to be "house poor", though not being able to travel for three months of a year doesn't necessarily mean you are poor. Eventually you should think about saving up money and possibly building up equity in a house that you own.

[omgreo]

If it's just you and your partner, I'd go for the current setup where you can travel. If/when you have kids, get a house and spend those 1-2 weeks at Disneyland/Florida/Cuba/etc. That's what I would do anyway.

[mbg]

Both options seem boring to me.

Maybe you should specify that only people whose life is not made meaningful by useful work should answer.

[sandikosh]

What would be your option? First option: buying a house and maybe travel on little 1-2 weeks yearly trips to boring locations (Cuba, DR Etc.etc). House poor basically.
Second option: living in a 3 bedroom upper duplex @ $850 all in (Current setup) + 2-3 months yearly vacation to Europe and beyond.

Summer 2011 We did Greek isles, Athens, Rome, Venice and Paris over a 2 months period and we loved every minute of it.

Would love to have your say.

Since you loved every minute of travelling in Spring 2011, I suggest you stay where you are right now.

[redflag5050]

Sort of requires that you have a life that allows you to get away for that long. I'm sure everyone would choose the traveling option for as long as they are able to.

You never want to choose to be "house poor", though not being able to travel for three months of a year doesn't necessarily mean you are poor. Eventually you should think about saving up money and possibly building up equity in a house that you own.

We have a seasonal business that allows us to travel up to 6 months a year if we can financially afford to which we don't. 2-3 is doable. The kids are grown and able to fend for themselves. The option to travel does allow us to put some money aside but not much. I hate the idea of living the rest of my years tending to a house. Most of our friends bought their houses and to be honest the wife would like to have a house. I could care less. Most of the people I know nag about how costly owning and maintaining a house is and I would hate to be in that position.

[fakishan]

travel

[trixstar]

such a weird question.. everyone will tell a different answer. It really depends on everything and everyone will be different in their opinions

[Stinger]

What about finding a smaller ownership solution like a condo or townhouse that only slightly increases your current expenses of $850, and maybe scale back your travel plans? Add an extra $250 to your living expenses and take one destination of your itinerary.

Go someplace "boring" for 2-3 months instead (Personally, I would take going to "boring" places for 2-3 months over the headache and cost of traversing through Europe any day. The latter was not my idea of a "vacation" when I did it. :( )

You are currently paying someone else's mortgage for them, why not get something tangible out of it? Though, keep in mind you can't work forever (though owning your own business can sure extended amount you can continue to draw income.) and buying a dwelling if your going to still be paying it off well in to retirement won't be much fun either.

[BornRuff]

We have a seasonal business that allows us to travel up to 6 months a year if we can financially afford to which we don't. 2-3 is doable. The kids are grown and able to fend for themselves. The option to travel does allow us to put some money aside but not much. I hate the idea of living the rest of my years tending to a house. Most of our friends bought their houses and to be honest the wife would like to have a house. I could care less. Most of the people I know nag about how costly owning and maintaining a house is and I would hate to be in that position.

Given that you have adult children, you must be of a certain age.

If you don't have much in the way of savings at this point, buying a house likely isn't a good investment. If you can put enough of a down payment down to avoid CMHC payments, the monthly interest costs, plus a decent budget for maintenance, is less than your rent, and you know you can easily pay it off well before you plan to retire, then it might make sense.

You are probably better off doing what you are doing now and hopefully saving up cash for retirement.

[gwan]

travel if you love it
why do you need a house?

[redflag5050]

Given that you have adult children, you must be of a certain age.

If you don't have much in the way of savings at this point, buying a house likely isn't a good investment. If you can put enough of a down payment down to avoid CMHC payments, the monthly interest costs, plus a decent budget for maintenance, is less than your rent, and you know you can easily pay it off well before you plan to retire, then it might make sense.

You are probably better off doing what you are doing now and hopefully saving up cash for retirement.

Not a question of not having any savings stashed away. We don't live paycheck to paycheck by any means. Just not interested in obligating myself to house. Condo is out of the question as we never lived in a building or in a co-op before. Like I said, many of the people we know who are home owners are slaves to their possessions and constantly telling us we are lucky not to have the extra burdens that come with "owning" a house.

[stuntman]

^^^I think you answered your own question.....

But things change and it is probably a good idea to save up a nice bunch of money incase you change your mind later. Vacationing/traveling for 2 months a year sounds expensive. But travel people have to travel

[mbg]

What would happen if I bought a condo and then a bunch of units got foreclosed on and people stopped paying condo fees?

[Digo]

What would happen if I bought a condo and then a bunch of units got foreclosed on and people stopped paying condo fees?

I'd think the bank could sell those units to new buyers who will start paying the fees? Actually I am curious if a bank takes ownership of a condo, would they still have to pay the condo fees, in which case they will try to sell it asap.

[king_george]

I'd think the bank could sell those units to new buyers who will start paying the fees? Actually I am curious if a bank takes ownership of a condo, would they still have to pay the condo fees, in which case they will try to sell it asap.

Whoever holds the title pays the fees. My wife is a real estate law clerk and said so (and I dare not disagree ;))

[Nurse2B]

I'd choose the 2-3 months of travelling option, no doubt!

Unfortunately, leaving my job 2-3 months a year would likely mean I'd have no job to come back to.

[chemical_echo]

Obviously the travel, but most of the world can't take 2-3 months off a year. I only get two weeks off next year and I plan on spending just over half of that in Australia.

Maybe if I was a teacher, but then I'd be making less than what I get now and wouldn't be able to afford to travel to nice places like Europe or Australia for 2-3 months.

[IceBlueShoes]

Why not travel for a month and buy a place, or smaller.

I'm sure theres a way you can have it both ways. Compromise. It's what I'd do.

[mbg]

I'd think the bank could sell those units to new buyers who will start paying the fees? Actually I am curious if a bank takes ownership of a condo, would they still have to pay the condo fees, in which case they will try to sell it asap.

They would, but you know as soon as it crosses from personal to business they only pay attention to legal requirements and fully use any and all grace periods.

[king_george]

They would, but you know as soon as it crosses from personal to business they only pay attention to legal requirements and fully use any and all grace periods.

Wrong again. All condo fees and all other charges must be paid on full upfront the same as any other title holder. There are no grace periods. That is the legal requirement. Condo corporations are run by the owners through an elected board, not the building owners. If anyone doesn't pay up, including the banks if they take title, the rest of the owners have to make up the difference. That's not going to happen.

[Hugh Jass]

We have a seasonal business that allows us to travel up to 6 months a year if we can financially afford to which we don't. 2-3 is doable. The kids are grown and able to fend for themselves. The option to travel does allow us to put some money aside but not much. I hate the idea of living the rest of my years tending to a house. Most of our friends bought their houses and to be honest the wife would like to have a house. I couldN'T care less. Most of the people I know nag about how costly owning and maintaining a house is and I would hate to be in that position.

Fixed.

"I could care less" means you actually do care, whereas "I couldn't care less" means you don't care.

Just an fyi

[nalababe]

Both house and travel...

Even with the house we take one 3-4 week trip every 18 months for the four of us. Reality is that we cannot travel longer. 3 weeks is the most I am allowed to take in one go...four weeks this year was tough to pull off....

To do so, we are willing to forgo expensive cars or other unnecessary luxuries.

Now I do benefit from aeroplan points and hotel points from traveling.

[nalababe]

Obviously the travel, but most of the world can't take 2-3 months off a year. I only get two weeks off next year and I plan on spending just over half of that in Australia.

Maybe if I was a teacher, but then I'd be making less than what I get now and wouldn't be able to afford to travel to nice places like Europe or Australia for 2-3 months.

Of course once a the top of the grid a curriculum leader can be in the 95 range...more than enough to travel.

Time is far more challenging if you want to travel. One can always travel inexpensively...finding more time is difficult. Our teacher friends (even the young ones) are always traveling in the summer: South America, Asia, Australia, Europe...

[mbg]

Wrong again. All condo fees and all other charges must be paid on full upfront the same as any other title holder. There are no grace periods. That is the legal requirement. Condo corporations are run by the owners through an elected board, not the building owners. If anyone doesn't pay up, including the banks if they take title, the rest of the owners have to make up the difference. That's not going to happen.

So how does this work, then?

The condo board would take some of the collected condo fees and sue the bank to get them to pay up if they didn't?

The rest of the owners will make up the difference. That's what special assessments are all about.

Another option is to just let the building fall into disrepair and fix things on a priority basis, which is what often ends up happening when a building you've bought a condo in ends up being owned by majority of investors who just want to keep fees low and don't care about the place being all that attractive.

[transitguy1]

Its better to go out, travel, have fun rather than sit in the same house for years without going anywhere.

Don't be a slave to the mortgage and banks, etc.

Live free, trust me 90% of the people around you will be jealous of your travels, having fun, traveling, etc


The mortgage slaves in this country will never be free, even after they pay it off the system will make them purchase more and more. It is a never ending cycle.

Renting is so much easier......find the right place and rent. Then spend on vacation, travel, take time off.

Mortgage slaves are always working overtime, they never take vacation or sick leave. Then all of a sudden health issues arise, such as strokes, attacks, etc due to the stress and strain from paying the mortgage, maintenance.

[Hugh Jass]

OP, you've mentioned your work is seasonal. When you get older, is it something you can still do, like people's taxes or owning a ski resort or something?

I think your answer lies in how your golden years can be financed. If they're looked after and you'll be comfortable renting forever, then do the travel thing.

[king_george]

So how does this work, then?

The condo board would take some of the collected condo fees and sue the bank to get them to pay up if they didn't?

Depends on the amount owed. It might be able to use small claims but rest assured the bank would never let that happen. The cost of going to court would far exceed the cost of the fees.


The rest of the owners will make up the difference. That's what special assessments are all about.

Nope. All fees and assessments are voted on. Increases are put forward and then voted on. The condo board (in most cases) cannot arbitrarily charge any fees beyond the agreed upon monthly cost. Anything other than that is breach of contract.
The current condo owners will never let anyone or any business get away with not paying fees. Never.
Besides a portion of all fees is put into a contingency fund for emergency repairs. That is an interest bearing account that may be used by the board and owner for extraordinary repairs/maintenance. The condo owners must them make up that cost in the emergency fund in the next year or whatever is agreed upon make-up time. Even that must be voted on.
Alternatively, the condo owners cannot vote to reduce fees below a minimum amount required to keep up the maintenance and repairs during the normal course of the buildings lifetime.


Another option is to just let the building fall into disrepair and fix things on a priority basis, which is what often ends up happening when a building you've bought a condo in ends up being owned by majority of investors who just want to keep fees low and don't care about the place being all that attractive.

The buildings owner would then repair anything and then charge the condo corporation whatever the cost and collect in court if necessary. Actually in almost all cases it's the owner that takes care of maintenance by contracting it out using the board-agreed cost. There is no ****ing way the owners would let it fall into disrepair and still hope to keep the building attractive to buyers and renters. Remember the condo owners do NOT own any common space whatsoever and are not responsible for that upkeep, only pay for it.

How many owners would like to live on the 25th floor and not have the cash to fix or maintain elevators? Not many I'd guess.

But in any case the title holder pays fees and not necessarily the occupant. Condo agreements are really really complex and cover all the issues you brought up. If you try and read one, I guarantee your eyes will glaze over in a minute or two.

[king_george]

Its better to go out, travel, have fun rather than sit in the same house for years without going anywhere.

Don't be a slave to the mortgage and banks, etc.

Live free, trust me 90% of the people around you will be jealous of your travels, having fun, traveling, etc


The mortgage slaves in this country will never be free, even after they pay it off the system will make them purchase more and more. It is a never ending cycle.

Renting is so much easier......find the right place and rent. Then spend on vacation, travel, take time off.

Mortgage slaves are always working overtime, they never take vacation or sick leave. Then all of a sudden health issues arise, such as strokes, attacks, etc due to the stress and strain from paying the mortgage, maintenance.

I don't understand. Now that I'm almost paid off, I'll need to buy more of what exactly?

Plus I guess you've never heard of a type of mortgage insurance that will help you when and if those conditions happen. Planning is the key here, hyperbole helps no-one.

I've made a lot of money from real estate, how am I a slave again?

[transitguy1]

I don't understand. Now that I'm almost paid off, I'll need to buy more of what exactly?

Plus I guess you've never heard of a type of mortgage insurance that will help you when and if those conditions happen. Planning is the key here, hyperbole helps no-one.

I've made a lot of money from real estate, how am I a slave again?

You're still paying it off (until it will end, then the house will be in your name and it will be yours then)

You work for GO Transit, and your wife/you are also in real estate, you got 2 or 3 "extra" incomes coming in. How much time have you put in to make all that money?" A lot of people in Canada, do not have that. A lot of wives/mothers stay home and do not work, only the husbands work. So of course they will not have the "extra" income. If kids are involved, then a lot gets spent on the kids.

How much have you spent on yourself, traveling let's say, to other countries/continents. Note we're not talking about 1-week cruises or secluded resort with alcohol type "vacations" a lot of people take. We're talking about going outside the continent. Have you done that every year 2-3 times? :?:

But then GO does not allow a lot of LWOP for vacationing, so you wouldn't be going unless you had a lot of seniority like 25+ years :lol:

[RolandCouch]

Home. Because I would miss work being gone for so long.

[boyoflondon]

Its better to go out, travel, have fun rather than sit in the same house for years without going anywhere.


It is! However, finding a balance is also good. At the moment, I have 3 weeks of vacation which is OK for me. When I go to Europe, I'd love to have more, but I do with what I've got. As much as I love to travel, doing so 2-3 months every year would get too much. I'd rather have a house, build equity, and still travel few weeks a year.

[redflag5050]

OP, you've mentioned your work is seasonal. When you get older, is it something you can still do, like people's taxes or owning a ski resort or something?

I think your answer lies in how your golden years can be financed. If they're looked after and you'll be comfortable renting forever, then do the travel thing.

Our work involves very minimal physical activity. It can be done until we decide to stop or sell. Age is not an issue. Golden years will be financed through savings that we are careful with. Not wanting to be a burden on our children is also a priority.

[king_george]

You're still paying it off (until it will end, then the house will be in your name and it will be yours then)

Okay then I won't be buying anything else then after the mortgage is discharged. Glad you cleared that up :)


You work for GO Transit, and your wife/you are also in real estate, you got 2 or 3 "extra" incomes coming in. How much time have you put in to make all that money?" A lot of people in Canada, do not have that. A lot of wives/mothers stay home and do not work, only the husbands work. So of course they will not have the "extra" income. If kids are involved, then a lot gets spent on the kids.

Nope only two incomes now aside from our rsp investments which I can't touch. Just hers and mine. My daughter works part time but she keeps and handles that money herself.
We bought the rental house in 1998 after an inheritance and sold it last year. We were extremely lucky and had good tenants who would up buying the house. One set of tenants in 13 years.
So not a lot of effort was put into extra rental income aside form worrying occasionally about housing prices in the beginning. We spent what was necessary on the kids but never got them iPods, laptops or smartphones. If they wanted one, get out and find a part time job. All they got from me was a regular phone and texting on the family plan and a desktop PC. They got a Wii form Xmas one year and they bought their own games.



How much have you spent on yourself, traveling let's say, to other countries/continents. Note we're not talking about 1-week cruises or secluded resort with alcohol type "vacations" a lot of people take. We're talking about going outside the continent. Have you done that every year 2-3 times? :?:

Not yet. Only twice right now, once with and once without the kids. We generally go to historical places and not resorts or anything like that. Our last trip was to Bath and Exeter UK to check out the cathedrals. We had planned on heading for France this year but a grandchild arrived and we decided to use our vacation in Edmonton where they live.
But take notice we are cheapskates and only take economy everything. The wife has lots of relatives in England so accomodation there is usually free or very cheap.
We went on a golf vacation (well I did ayways) to Bermuda two years ago. The wife doesn't golf so she stayed at the hotel and ogled the guys in speedos (shhh don't tell anyone I said that!) while I chased the little white ball around. Pure paradise. I'd do that every year if the expense of staying there wasn't outrageous when there's no deals to be had. I played 6 rounds of golf with total strangers in 5 days. :lol:
We've taken at least one vacation each and every year since the kids were born too. Sometimes that's all we could afford but we did it. :)



But then GO does not allow a lot of LWOP for vacationing, so you wouldn't be going unless you had a lot of seniority like 25+ years :lol:

GO allows any amount of LWOP you want. All that does is not count against seniority and your salary increases if you're union. I plan on taking the month of December off this year to stay in Edmonton with my grandson. Of course plans may change and they may come here so I can work rather than losing a months pay.

I don't have 25 years seniority BTW.:confused:

Plus I STILL could afford a house.

[rabbit]

I prefer owning over renting. Renting is like giving money away so someone else can own a place (ie. paying someone else's mortgage).

[redflag5050]

I prefer owning over renting. Renting is like giving money away so someone else can own a place (ie. paying someone else's mortgage).
Then where is the advantage for me when what I pay in rent now will be paid towards taxes and upkeep on a house?

[starkiller2010]

On a similar topic (not sure if there is a thread on this already), but is it worth saving 20% of the house price for downpayment to avoid that mandatory insurance? I have 10% of the downpayment already (my budget is for a $350,000 townhome), but 20% will take much longer for me to do...

[king_george]

On a similar topic (not sure if there is a thread on this already), but is it worth saving 20% of the house price for downpayment to avoid that mandatory insurance? I have 10% of the downpayment already (my budget is for a $350,000 townhome), but 20% will take much longer for me to do...

Time to dig out the calculator and run the numbers.

It's your choice alone since nobody here can possibly know what your income is and what your income projections are.

It's still a good idea to get mortgage insurance no matter what your down payment is IMO.