Looking for advice

Leveraging, renting vs owning, making an investment or buying a home?
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doom_diver
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Looking for advice

Post by doom_diver » 03 Dec 2017 23:27

My son recommended I should ask the most brilliant minds for advice. I am 58 years old and not in great health. I have a good career earning 6 figure income (low) and thinking to work 3 more years. My husband and I own a home worth 4 million in Vancouver with a mortgage of 400,000. We are separated. My two youngest children are at home but are getting settled in good trades and are self sufficient. I am wanting to purchase a seaside apartment with amenities that will be ready in three years. It costs 1.5 million. Strata fee is about 750.00. The deposit is 25 percent balance due on completion. Do i proceed to purchase with the idea to liquidate in 3 years and split the money with my husband? Is an apartment a good investment? Or should i plan to let my children stay in the house fill it with roomates and use the income to pay a full mortgage on the seaside place. Thank you for your input. Right now I rent a place for about 1400.00. My husband and boys are in the house. I will have a pension of about 2100.00 when I retire. Because of my health I will not be able to travel much so I am looking to maximize my daily enjoyment by living by the seaside with a pool and gym right there and hospital close.

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kcowan
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Re: Looking for advice

Post by kcowan » 04 Dec 2017 09:17

Buying pre-construction is the most risky way to get into RE, especially condos. OTOH half the home equity is due to you upon formalizing your legal Separation Agreement. So where do you put the $2 million?

I would probably put it in a REIT until I could find a move-in ready condo to buy. Time is on your side. Not knowing any details of your health issues, I cannot offer an opinion on where to settle.

Don't forget you have to share joint CPP 50/50 with your ex.
For the fun of it...Keith

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AltaRed
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Re: Looking for advice

Post by AltaRed » 04 Dec 2017 09:54

kcowan wrote:
04 Dec 2017 09:17
Don't forget you have to share joint CPP 50/50 with your ex.
That DB pension will have to valued in the Division of Assets....unless all that has already been taken care of in a formal Separation Agreement.

There are potentially so many moving parts here that it is not at all clear to me what the division of assets is, or will be when the divorce is final. Personally, I would NOT end up in any asset that remains in joint ownership with an ex, no matter how good the relationship. A clean break is important to avoid potential future creditor actions, new spousal ramifications, etc.

Buying speculative pre-construction also complicates these matters. The bottom could yet fall out of the RE market and who then holds that bag? I would liquidate the house and simply buy something already existing....or continue to rent.
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nisser
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Re: Looking for advice

Post by nisser » 05 Dec 2017 13:42

This has room to get very complicated. The only advice and probably the most sure advice I can give you is to sell your house. Get that 4 million now before it becomes a lot less.

flywaysuzy
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Re: Looking for advice

Post by flywaysuzy » 05 Dec 2017 13:53

Seems like a very expensive purchase for someone who will be living off of less than $1500 a month in income. I think you also have to be wary of strata fees that can change several years after completion of construction. If you are diabled then you must get a reduction on your property taxes, any thoughts to buying a less expensive property now and not waiting until you retire?
suzy

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