Should we buy cash or rent first
Mar 14th 2012, 12:39 pm
#1
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Should we buy cash or rent first
Our situation is this. We are a family of 5 and we should have about $450k from the sale of our house when we land, and will have no jobs. We are looking at Mississauga.
If we rent in a good school district we are looking at $2000 pm excl utilities, and total monthly expenses of $4000 pm. After 6 mths of unemployment we will have spent $24k.
If we land, rent short term furnished, choose the area and schools very carefully, and buy a 3 bed townhouse for about $400k, this would leave us $50k to live on while we try to find jobs. Our monthly expenses would be $2000 pm. After 6 mths of unemployment we will have spent $12k.
Hopefully we will find employment sooner, but I am just trying to think of a worst case scenario. We would also look at buying a townhouse wilh strata, so any outside maintenance like a new roof etc. would be taken care of by the strata.
Reading the older posts on this forum, suggests that we should rent for a year before buying. We are really unsure about this.
What would you do?
If we rent in a good school district we are looking at $2000 pm excl utilities, and total monthly expenses of $4000 pm. After 6 mths of unemployment we will have spent $24k.
If we land, rent short term furnished, choose the area and schools very carefully, and buy a 3 bed townhouse for about $400k, this would leave us $50k to live on while we try to find jobs. Our monthly expenses would be $2000 pm. After 6 mths of unemployment we will have spent $12k.
Hopefully we will find employment sooner, but I am just trying to think of a worst case scenario. We would also look at buying a townhouse wilh strata, so any outside maintenance like a new roof etc. would be taken care of by the strata.
Reading the older posts on this forum, suggests that we should rent for a year before buying. We are really unsure about this.
What would you do?
Mar 14th 2012, 12:56 pm
#3
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Location: Formally Scotland. Now Bay of Quinte...Ontario
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Re: Should we buy cash or rent first
As the poster above has mentioned, on the budget you project, things are going to be tight.
Best of luck.
Mar 14th 2012, 1:06 pm
#4
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Joined: Mar 2005
Location: Ontario
Posts: 40,018
Re: Should we buy cash or rent first
Our situation is this. We are a family of 5 and we should have about $450k from the sale of our house when we land, and will have no jobs. We are looking at Mississauga.
If we rent in a good school district we are looking at $2000 pm excl utilities, and total monthly expenses of $4000 pm. After 6 mths of unemployment we will have spent $24k.
If we land, rent short term furnished, choose the area and schools very carefully, and buy a 3 bed townhouse for about $400k, this would leave us $50k to live on while we try to find jobs. Our monthly expenses would be $2000 pm. After 6 mths of unemployment we will have spent $12k.
Hopefully we will find employment sooner, but I am just trying to think of a worst case scenario. We would also look at buying a townhouse wilh strata, so any outside maintenance like a new roof etc. would be taken care of by the strata.
Reading the older posts on this forum, suggests that we should rent for a year before buying. We are really unsure about this.
What would you do?
If we rent in a good school district we are looking at $2000 pm excl utilities, and total monthly expenses of $4000 pm. After 6 mths of unemployment we will have spent $24k.
If we land, rent short term furnished, choose the area and schools very carefully, and buy a 3 bed townhouse for about $400k, this would leave us $50k to live on while we try to find jobs. Our monthly expenses would be $2000 pm. After 6 mths of unemployment we will have spent $12k.
Hopefully we will find employment sooner, but I am just trying to think of a worst case scenario. We would also look at buying a townhouse wilh strata, so any outside maintenance like a new roof etc. would be taken care of by the strata.
Reading the older posts on this forum, suggests that we should rent for a year before buying. We are really unsure about this.
What would you do?
And, in Ontario they're called "condos" not "stratas". That you don't know this shows you aint ready to be ravaged by the Sam McDadi Team.
Echoing the incredulity at the proposed budget, a car will cost $1,000 a month. You'd have to be lucky and have a high tolerance for misery to live in Mississauga without a car.
Last edited by dbd33; Mar 14th 2012 at 1:11 pm.
Mar 14th 2012, 1:23 pm
#5
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Joined: Mar 2011
Posts: 46
Re: Should we buy cash or rent first
Rent.
And, in Ontario they're called "condos" not "stratas". That you don't know this shows you aint ready to be ravaged by the Sam McDadi Team.
Echoing the incredulity at the proposed budget, a car will cost $1,000 a month. You'd have to be lucky and have a high tolerance for misery to live in Mississauga without a car.
And, in Ontario they're called "condos" not "stratas". That you don't know this shows you aint ready to be ravaged by the Sam McDadi Team.
Echoing the incredulity at the proposed budget, a car will cost $1,000 a month. You'd have to be lucky and have a high tolerance for misery to live in Mississauga without a car.
Mar 14th 2012, 1:27 pm
#6
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Joined: Jun 2011
Posts: 1,746
Re: Should we buy cash or rent first
+1. Takes a lot of stress out of the situation knowing you have plenty of money in the bank. I wouldn't dream of buying straight away. You might buy in the wrong area or end up not liking it - it's a lot easier to walk away if renting 
Mar 14th 2012, 1:40 pm
#7
slanderer of the innocent
Joined: Dec 2008
Location: Vancouver, BC
Posts: 6,695
Re: Should we buy cash or rent first
did you add strata fees into your expenses? The strata doesn't do it for free.
Mar 14th 2012, 1:45 pm
#8
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Joined: Sep 2003
Location: Upstate South Carolina
Posts: 30,768
Re: Should we buy cash or rent first
Rent, every time.
Im pretty sure one school district will be much like another anyway. This whole "Good schools" thing is very british.
Im pretty sure one school district will be much like another anyway. This whole "Good schools" thing is very british.
Mar 14th 2012, 2:04 pm
#9
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Re: Should we buy cash or rent first
Wow, that is unanimous then. Rent first.
Thanks for the advice guys.
I guess we must just expect to bleed lots of money until we find jobs.
Thanks for the advice guys.
I guess we must just expect to bleed lots of money until we find jobs.
Mar 14th 2012, 2:23 pm
#10
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Joined: Sep 2011
Location: Cumbernauld, near Glasgow
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Re: Should we buy cash or rent first
If we land, rent short term furnished, choose the area and schools very carefully, and buy a 3 bed townhouse for about $400k, this would leave us $50k to live on while we try to find jobs. Our monthly expenses would be $2000 pm. After 6 mths of unemployment we will have spent $12k.
Mar 14th 2012, 2:50 pm
#12
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Re: Should we buy cash or rent first
Mar 14th 2012, 2:58 pm
#13
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Mar 14th 2012, 2:59 pm
#14
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Re: Should we buy cash or rent first
I'm going to buck the trend on this one. Having read many posts on here i would advise buying the largest house you can afford at the top of your $450k budget. If you dream hard enough, pound the streets every day networking, and have a cup half full attitude, it'll all work out. Where there's a will there's a way.
Good luck
Good luck
Mar 14th 2012, 3:02 pm
#15
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Joined: Jun 2005
Location: Fredericton, New Brunswick CA
Posts: 8,309
Re: Should we buy cash or rent first
I'm going to buck the trend on this one. Having read many posts on here i would advise buying the largest house you can afford at the top of your $450k budget. If you dream hard enough, pound the streets every day networking, and have a cup half full attitude, it'll all work out. Where there's a will there's a way.
Good luck
Good luck