Bought new build, sell house now and rent or wait
Durham Region, Ontario.
I bought a new build (Phase 2) that is supposed to be completed in January 2021 (likely to be delayed, they haven't started digging yet).
I am debating if I should sell my townhouse now while the market is hot and rent until my new place is ready.
Some factors:
I like the idea of having the safety of getting the required money now while market is good, who knows how the market will be by Q4-2020/Q1-2021. However, it seems like I stand to lose a good chunk of cash by renting instead of putting that money toward mortgage principal while my rate is really good.
I bought a new build (Phase 2) that is supposed to be completed in January 2021 (likely to be delayed, they haven't started digging yet).
I am debating if I should sell my townhouse now while the market is hot and rent until my new place is ready.
Some factors:
- Real Estate agent has investor clients interested in my type of house, and they are willing to rent my current house to me until the new house is ready (Rent cost to be negotiated as part of sale)
- Wont have to move twice, but will not have opportunity to have multiple bids
- Houses on my street seem to sell very quickly (townhouses)
- Current mortgage remaining is ~330k (variable rate @ 1.45%, 3 years remaining on term), more than half my mortgage payments are toward the principal at this point
- Not sure how mortgage penalty will work, or if I can port current mortgage to new place now even though its not ready yet?
I like the idea of having the safety of getting the required money now while market is good, who knows how the market will be by Q4-2020/Q1-2021. However, it seems like I stand to lose a good chunk of cash by renting instead of putting that money toward mortgage principal while my rate is really good.
