Personal Finance

Best decisions to make in my scenario

  • Last Updated:
  • Feb 14th, 2019 1:07 am
[OP]
Newbie
Oct 14, 2018
11 posts
2 upvotes

Best decisions to make in my scenario

Hello, my brother, parents and I all live together. Our financial situation is as follows :

-we own a towmhome worth 600k-650k( mortgage+all bills = 2700 a month) (townhome rented out for $2550)
-just purchased a detached home worth $1mil we currently live in (mortgage+all bills=$4400). (basement rented out for $1300 brings down the cost to $3100)

Parents income together is 100k
Brothers income 40k (age 27)
My income 45k (age 24)

The only debt I have is student loans 27k or so (I will apply for repayment assistant plan soon so I don't have to pay most of the interest)

I have 10k in savings+have over 50-60k invested in the $1mil home we currently live in.

Am I doing mostly everything right in my circumstance? Is there any other way I can capitalize on my circumstance? If you were in my shoes, would you do anything different regarding selling any of the above properties?
21 replies
Newbie
Aug 15, 2018
39 posts
38 upvotes
Sounds like you are fully invested in GTA RE now. Bears will tell you its risky, bulls will say its your best move. Only time will tell. But most experts will tell you to diversify over multiple markets.
Start a TFSA account if you haven't already and start investing in some equities.

I think living with your parents is a great strategy to grow your savings. Stay with them as long as you can.
Newbie
Feb 4, 2014
19 posts
11 upvotes
Montréal
Are you all on the title of the property? Make sure your investment is protected... besides that, start saving and investing in something other than real estate... also keep in mind at one point you will want to start a family of your own so you’ll probably want to move out
Deal Addict
Aug 20, 2007
1858 posts
616 upvotes
Kitchener
how would the OP qualify for repayment assist? would someone with 10k in savings and other assets qualify for interest relief?
Newbie
Feb 4, 2019
23 posts
11 upvotes
peelhic wrote:
Feb 12th, 2019 8:51 pm
how would the OP qualify for repayment assist? would someone with 10k in savings and other assets qualify for interest relief?
My understanding is that, at best, OP will be able to make reduced payments because his/her income is above the $25K threshold for making zero payments as a single person.
[OP]
Newbie
Oct 14, 2018
11 posts
2 upvotes
Trust me, you'd be surprised how leniant they are. after graduating from my degree program of 4 years. My grace period was about to end. I applied for the RAP while I had an annual income of 40k the year before, and I paid 0 interest for at least 3-6 months until I went back to school the year after. The weeks and months of when I applied for the RAP I was earning at least 3k per month and was on my way to earn around 38-40k for that year.
[OP]
Newbie
Oct 14, 2018
11 posts
2 upvotes
yasben wrote:
Feb 12th, 2019 8:45 pm
Are you all on the title of the property? Make sure your investment is protected... besides that, start saving and investing in something other than real estate... also keep in mind at one point you will want to start a family of your own so you’ll probably want to move out
Yes my parents and Ihave 1/3 share each of the current property.
Deal Fanatic
Jul 4, 2004
8171 posts
1116 upvotes
moh230 wrote:
Feb 12th, 2019 9:44 pm
Yes my parents and Ihave 1/3 share each of the current property.
Hope you've got some sort of agreement and can trust the other shareholders should you chose to want your shares out. A little difficult to do with family and in an asset that you all live in together.
Help an animal charity or sanctuary out today. Become a volunteer, advocate, foster a pet, or donate. They need you as much as you need them!
Deal Addict
Jan 28, 2007
2123 posts
1441 upvotes
SW Ontario
Frankie3s wrote:
Feb 12th, 2019 10:29 pm
Hope you've got some sort of agreement and can trust the other shareholders should you chose to want your shares out. A little difficult to do with family and in an asset that you all live in together.
I see this becoming messy in the coming years ahead when; someone wants out on their own, a parent or sibling should happen to lose their employment or have a health issue, or a large major repair suddenly comes up, etc ...
I'd rather be outdoors camping, kayaking, and mountain biking ...
Deal Addict
Feb 9, 2013
1740 posts
545 upvotes
Mississauga
may I ask which area you live in? renting a townhouse for $2550 and a basement for $1300 is quite high.
[OP]
Newbie
Oct 14, 2018
11 posts
2 upvotes
Jojo_Madman wrote:
Feb 12th, 2019 10:50 pm
I see this becoming messy in the coming years ahead when; someone wants out on their own, a parent or sibling should happen to lose their employment or have a health issue, or a large major repair suddenly comes up, etc ...
I've put 30k into the town home we currently have and another 30k now in the new home. I don't understand when people comment "when a parent or sibling loses their emoloyment". So what? Isn't that what family is for? To help each other in time of need? We already discussed scenarios if I do want to move out. They'd sell me the town home and dump all the extra cash into the 1mil house so it's mortgage becomes affordable. My main thing is it seems as many people treat their families as strangers. Thats what I at least get from some peoples responses
[OP]
Newbie
Oct 14, 2018
11 posts
2 upvotes
jdu0ng wrote:
Feb 12th, 2019 11:34 pm
may I ask which area you live in? renting a townhouse for $2550 and a basement for $1300 is quite high.
Peel region. Its a 3 bedroom town home+ 2.5 bathrooms. Plus basement is finished with a 3pc bathroom. The rent is 2400+ 50% utilities which comes to around 2550. Our new home is also a few km away from the town home. they are both a 5 min walk from Sheridan college
Last edited by moh230 on Feb 13th, 2019 1:43 am, edited 1 time in total.
[OP]
Newbie
Oct 14, 2018
11 posts
2 upvotes
Frankie3s wrote:
Feb 12th, 2019 10:29 pm
Hope you've got some sort of agreement and can trust the other shareholders should you chose to want your shares out. A little difficult to do with family and in an asset that you all live in together.
The "shareholders" are my family. Why the **** would I want my shares out? So I can abondan my family which would be a negative to them+ live on my own in a shitty condo with all the expenses I have to deal by my self?
Jr. Member
User avatar
Jan 23, 2019
107 posts
155 upvotes
Black site, Canada
moh230 wrote:
Feb 13th, 2019 1:41 am
The "shareholders" are my family. Why the **** would I want my shares out? So I can abondan my family which would be a negative to them+ live on my own in a shitty condo with all the expenses I have to deal by my self?
What if you get married and have 3 kids, and your spouse doesn't want to live with your brother and parents? You'll need your shares 'out' if you want to move elsewhere (closer to spouse's work, etc). Your spouse may not be keen on your predetermined contigency of buying out your shareholders to live in one of the two existing properties :)

What if you get a job in another city/province and want to buy property there and need the equity you've built up to be able to do that?
Deal Addict
Jan 28, 2007
2123 posts
1441 upvotes
SW Ontario
moh230 wrote:
Feb 13th, 2019 1:34 am
I've put 30k into the town home we currently have and another 30k now in the new home. I don't understand when people comment "when a parent or sibling loses their emoloyment". So what? Isn't that what family is for? To help each other in time of need? We already discussed scenarios if I do want to move out. They'd sell me the town home and dump all the extra cash into the 1mil house so it's mortgage becomes affordable. My main thing is it seems as many people treat their families as strangers. Thats what I at least get from some peoples responses
Your asking questions on a forum it's not like we know you or your family dynamics intimately or something.

Great if 8t all works out in the end, but unfortunately I've seen way too may family feuds once money was involved, especially if becomes stressful.

Your young and idealistic and it shows, and hopefully it does work out ... I just wouldn't count on it going smoothly.
I'd rather be outdoors camping, kayaking, and mountain biking ...

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