new home or resale home - can afford both
Hi,
I am in a dilemma about my home purchase.
I am in a position to purchase a new detached home or a re-sale detached home. Both are in the price range of 385 - 410K.
The mortgage for both the properties fall within my budget.
The issue I have is that the new home needs a $40K deposit within 3 months which I don't have. I would need to pull out a loan of 20K to cover it which I don't think is a good idea.
The re-sale I can buy today because I will go with 10% downpayment and take the CMHC one time hit.
If I wait for another year (summer 2014), I will have the necessary 40K for a new home deposit and I will also possibly have the 20% required for the re-sale home.
I am a little worried about the housing market and about home prices increasing as well as mortgage rates increasing.
Currently, I live in a condo and I am almost getting tired of paying the maintenance costs.
Any advice?
Also, would you recommend a new home or a re-sale home (area is Brampton)? I don't like the unknowns of a new home. I like that fact that I can walk in a re-sale home and see exactly what I am getting. Please do provide some feedback.
I am in a dilemma about my home purchase.
I am in a position to purchase a new detached home or a re-sale detached home. Both are in the price range of 385 - 410K.
The mortgage for both the properties fall within my budget.
The issue I have is that the new home needs a $40K deposit within 3 months which I don't have. I would need to pull out a loan of 20K to cover it which I don't think is a good idea.
The re-sale I can buy today because I will go with 10% downpayment and take the CMHC one time hit.
If I wait for another year (summer 2014), I will have the necessary 40K for a new home deposit and I will also possibly have the 20% required for the re-sale home.
I am a little worried about the housing market and about home prices increasing as well as mortgage rates increasing.
Currently, I live in a condo and I am almost getting tired of paying the maintenance costs.
Any advice?
Also, would you recommend a new home or a re-sale home (area is Brampton)? I don't like the unknowns of a new home. I like that fact that I can walk in a re-sale home and see exactly what I am getting. Please do provide some feedback.