Bought a home for 560k in 2007

Leveraging, renting vs owning, making an investment or buying a home?
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Sunshine22
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Bought a home for 560k in 2007

Post by Sunshine22 » 23 Dec 2016 20:31

Hi I bought a home for $560k in 2007 , paid 10% down and did an interest only mortgage for the loan for 10 years.I was making close to 200k when I initially bought the house and since my wife wasn't working and with two kids my expenses were high and I couldn't save anything.I lost my job in 2014 and found another paying 130k in another state.I rented out my original home to someone to cover the mortgage and I am living on rent where I work.I have nothing in savings and still owe $450k on that house.Sometimes I think of selling that house but it's selling for 500k and in that case I will lose my equity .I need a financial advise for my difficult situation .

Just a Guy
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Re: Bought a home for 560k in 2007

Post by Just a Guy » 23 Dec 2016 23:30

You may be better off asking this on an American investing site. Canadian rules are different, not to mention state laws treat real estate differently.

We could give you some general advice but, with different rules, our advice may not be the best for your situation.

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kcowan
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Re: Bought a home for 560k in 2007

Post by kcowan » 24 Dec 2016 07:44

Sorry to hear about you loss of a high-paying job. A 35% loss in income is major.

I guess the question is: are these arrangements long term? If so then it might make sense to sell at a loss. Is mortgage deductability a major factor for you? If so then buying where you work might be a better idea.

Post the same question on bogleheads to deal with these issues.
For the fun of it...Keith

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Peculiar_Investor
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Re: Bought a home for 560k in 2007

Post by Peculiar_Investor » 24 Dec 2016 08:51

Welcome to FWF. As is mentioned up-topic, we are a Canadian based discussion forum. You might be better served asking your question on our sister US forum, Bogleheads.org.
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Spudd
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Re: Bought a home for 560k in 2007

Post by Spudd » 24 Dec 2016 09:11

You might also wish to check out MrMoneyMustache.com for tips on reducing expenses. They have a forum as well.

hamor
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Re: Bought a home for 560k in 2007

Post by hamor » 24 Dec 2016 12:27

no advice on your house situation, but you need to save more.
My situation is in many ways similar to yours, so I speak from experience.

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