Is there a way for me to start buying real estate sooner than later? Here’s our financial situation:
Household monthly income: $11,600 (guaranteed contractual increase 3% minimum every year).
Monthly minimum debt payments: $300 (payments on interest only LOC and credit cards. Unsecured LOC is 3% but at maximum balance 48k)
Parent loan: $25000 (Lump sum due in 1.5 yrs, interest free student loan long ago. They could really use the money back now.)
Current residence value: $305,000
Current high ratio mortgage: $259,000
Car values approx: 10K (Honda Civic 2003 4 dr, 2000 Pontiac Sunfire. Cars are paid off)
Cash/Bonds: $5000
Property tax: $2200/yr
Hydro: $90
Heating: $130 (maximum, otherwise around $60-70)
Both my husband and my FICOs are mid 700s
My plan is to wait 1 year until I have at least 15K saved in cash and knock down our LOC. When our mortgage comes up for renewal in March 2011, refinance a high ratio mortgage back up to $272 borrow approx 25K on our house, pay back my parents and use the $15K in cash to buy a one or two family rental in Kitchener/Waterloo. Put the closing costs on our unsecured LOC which will be half paid off by then.
I thought I’d put it out to the experts. It seems from all my research and reading, there may be other factors/avenues/things I may not be aware of.
We are a young family, highly motivated professionals with two kids 3 and 1 and would like to lay a strong foundation of financial stability by investing now for the future.
Please advise….
Household monthly income: $11,600 (guaranteed contractual increase 3% minimum every year).
Monthly minimum debt payments: $300 (payments on interest only LOC and credit cards. Unsecured LOC is 3% but at maximum balance 48k)
Parent loan: $25000 (Lump sum due in 1.5 yrs, interest free student loan long ago. They could really use the money back now.)
Current residence value: $305,000
Current high ratio mortgage: $259,000
Car values approx: 10K (Honda Civic 2003 4 dr, 2000 Pontiac Sunfire. Cars are paid off)
Cash/Bonds: $5000
Property tax: $2200/yr
Hydro: $90
Heating: $130 (maximum, otherwise around $60-70)
Both my husband and my FICOs are mid 700s
My plan is to wait 1 year until I have at least 15K saved in cash and knock down our LOC. When our mortgage comes up for renewal in March 2011, refinance a high ratio mortgage back up to $272 borrow approx 25K on our house, pay back my parents and use the $15K in cash to buy a one or two family rental in Kitchener/Waterloo. Put the closing costs on our unsecured LOC which will be half paid off by then.
I thought I’d put it out to the experts. It seems from all my research and reading, there may be other factors/avenues/things I may not be aware of.
We are a young family, highly motivated professionals with two kids 3 and 1 and would like to lay a strong foundation of financial stability by investing now for the future.
Please advise….
