Okay. So I’m starting the long financial stage of the separation process. I’m currently living in the family home attic, a la that old book, Rebecca. Ha. I don’t want to stay in the attic forever. I’ve made appointments to speak with loan consolation programs in the hopes of saving my credit score. So the banks may make my decision for me, however, I’m curious if anyone has thoughts on buying something small with the payout on the remortgaging on the family home and letting my stbxh stay there OR investing the payout (max 70k CDN) for a year and rent. Trouble is, rent in Montreal is higher than mortgage payments.But renting buys me time. I’m not dating so there’s not huge rush except for the fact that I want to get on with my life. :/ thoughts, suggestions?
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Hello Amy Lou, I am not in the same position as you are and am quite a bit older. That being said, I would agree with what Jill said. Yes buying a home makes financial sense ... sometimes. When you are in the process of separation and kinda restarting your life, is likely not the best time to make a decision like looking for and finding a home to buy and all that comes with it. I too would suggest to rent for now and then look to buy. Invest your payout for now. All the best, Amy Lou. It is true what they say - it does get better. And so good for you that you are taking these steps.
I just moved into my own place last month (yay!), and opted to rent - for the first time since I was 21. It took a bit to get over the notion that this was a 'step backwards' for me financially - because it's really not. With the way interest rates are in Canada right now, if you're getting into a new mortgage, more often than not it is actually a better financial decision to rent & invest that down payment money instead. Currently taking an MBA and our Finance prof confirmed this for me via a rent vs buy case study project we did a few months ago - which really helped me get over my mental block!
Can also confirm that it's so great not worrying about any yardwork or home maintenance while in the middle of reinventing my life :) - renting in a trendy area near downtown Calgary with tons of amenities and things to do to help me get out there and meet new people, date, etc - vs buying again in the suburbs - has been so so great.
Yes it hurts that rent in Canada is soo expensive right now, but costs of home ownership also add up well beyond that mortgage principal payment, and if I'm considering this high rent part of my 'price of admission' to go live the life I want where I want - 1000% worth it!
Best of luck!