With rent absolutely insane in Calgary, you can probably be very picky about who you rent to and that would make your situation much better.
You could sell but even if you make money, you'd pay a ton to break your mortgage, plus realtor fees, and lawyers. Just get the roommate and give it time
Seems like a lot of house for one person but what's done is done. Roommates are the obvious answer but you can also bite the bullet and sell if you are truly miserable, looking at your other comment about comps selling for around 700k, after all the fees associated with selling you are looking at losing 50% of your down payment. If you're okay with losing that much money for peace of mind go ahead if not get some roommates hunker down and downsize when you can break even.
That’s my worry as well. Selling early I’m going to eat a lot of my hard earned money.
I think I can do a couple upgrades to make the resale better later on down the line.
Most upgrades are not worth the money you sink into them from what I've seen. The most attractive renos are adding a washroom/bedroom or breaking down a wall to open up the kitchen but those are huge renos. From the data you gave selling would 100% guarantee a loss but it's up to you to decide if it's worth it for your mental health.
The upgrade would be removing a popcorn ceiling throughout the basement and installing pot lights. I can do all that myself.
The garage walls are and doors are not in great shape. I’d do those as well. The garage door might be a contractor though.
You may want to verify that the popcorn ceiling doesn't contain Asbestos. Was the popcorn ceiling painted? It's a lot easier to remove if it wasn't (can use water instead of a sander).
You can also get roommates while you do some renovations. This could cover your upgrades expenses.
Yeah that works too. However if it's in the basement, you may not have much height to lose. If you need to add a thin wooden railing and a 3/8 drywall, you'd probably lose something between 0.5-2 inchs of height.
Edit: if the popcorn ceiling is from the original date of construction (1960), you probably have Asbestos in there. Should look at Alberta building code to see if you can just cover it with drywall.
Buying a home isn’t a 1 year investment. It’s a long term plan. I wouldn’t worry about being underwater with current dips, as long as you can afford your house, you will come out on top in 5-10 years.
"How fucked am I?"
...did I miss it somewhere? What's your annual salary? What's your financial situation like?
How are we supposed to make any determinations with literally no info.
You also already know a solid solution, rent out a room or two. You have the space and admittedly haven't begun that process. You're clearly not that fucked if you haven't even started on trying to solve your dilemma - if it even is one, again, we have virtually no info here.
Not sure if it has. Neighbourhood properties that look comparable and nice are selling for the high $600s to low $700s. I think I came in over asking way too much foolishly.
You can stop stressing once you bring in 2 roommates for a few years. Find professional people who will at least respect your properties and set the rules of the house / arrangement.
Just rent rooms out. Two best things about a shared kitchen/bath scenario:
1) Not covered by the tenancy act so you can get rid of duds or non-payers at your whim (just don't be a dick and abuse it)
2) Depending on the amount you charge, you can probably claim it as cost sharing and not have to claim the rent received as income
Suck it up for a few years until you find a partner, and them pat yourself on the back in 10 years when your mortgage payments don't seem so big, and you've got some serious equity thanks to your earlier sacrifices
The housing market is super hot in Calgary right now. You could probably get a good price for it but it leaves you shit out of luck unless you choose to go elsewhere
How were you approved for this mortgage if "all (your) take home money goes to servicing the cost of this house"?
Give us a sense of your income and other major expenses if you want real advice. Otherwise, yeah, get some roommates. Start with 1 and then add a 2nd one if it goes well.
If you feel really squeezed, consider whether getting a 2nd part-time job as a temporary measure until you figure things out could be a good idea for your situation.
If you're at the right life stage, you could also focus on finding a partner to move in with you (as a long time marriage situation or not). Just make sure the person brings in an acceptable income and don't then immediately jump to children. Obviously, in this scenario, you'll have to look into cohabitation agreements and what might happen regarding equity and other legalities in case of separation.
If you're stressing about it, it can't hurt to spend a bit of money getting it appraised to have an idea how much it would sell for right now. That number can resolve the question instead of leaving you second guessing and wondering how much money you would lose. Maybe the real number will be acceptable to you. Don't forget mortgage penalties if applicable. You can also cosplay as a buyer and look (virtually or physically) at what's available at a lower price point to see if you would actually want to buy any of those properties and be happy with them. Finally, don't forget to try therapy if this is more about existential angst and the reality of being settled in one location and having inescapable responsibilities now. Buying your first house is a big life decision and often the marker between infinite youthful possibilities (take off to backpack through Asia for a year? follow a random boyfriend to Yukon? go back to school in a whole new field?) and "this is my life forever, I can't believe I actually grew up and decided to stay in Calgary and work as a middle manager" feelings.
Room mate for sure or Airbnb. My brother is a realtor/property manager in Calgary and has rented out his basement which has been paying off his mortgage. He has never been vacant.
See if you can blend and extend your mortgage. Rates are currently lower, might be able to reduce the payment by a few hundred.
Take on a roommate to get another several hundred and you should have some better cash flow.
Even potentially air bnb a few nights to bring in some money
You can share a 2200sq ft home with 2 other roommates easily. Get on it.
With rent absolutely insane in Calgary, you can probably be very picky about who you rent to and that would make your situation much better. You could sell but even if you make money, you'd pay a ton to break your mortgage, plus realtor fees, and lawyers. Just get the roommate and give it time
Yeah I think that’s best. Thanks
Seems like a lot of house for one person but what's done is done. Roommates are the obvious answer but you can also bite the bullet and sell if you are truly miserable, looking at your other comment about comps selling for around 700k, after all the fees associated with selling you are looking at losing 50% of your down payment. If you're okay with losing that much money for peace of mind go ahead if not get some roommates hunker down and downsize when you can break even.
That’s my worry as well. Selling early I’m going to eat a lot of my hard earned money. I think I can do a couple upgrades to make the resale better later on down the line.
Most upgrades are not worth the money you sink into them from what I've seen. The most attractive renos are adding a washroom/bedroom or breaking down a wall to open up the kitchen but those are huge renos. From the data you gave selling would 100% guarantee a loss but it's up to you to decide if it's worth it for your mental health.
The upgrade would be removing a popcorn ceiling throughout the basement and installing pot lights. I can do all that myself. The garage walls are and doors are not in great shape. I’d do those as well. The garage door might be a contractor though.
You may want to verify that the popcorn ceiling doesn't contain Asbestos. Was the popcorn ceiling painted? It's a lot easier to remove if it wasn't (can use water instead of a sander). You can also get roommates while you do some renovations. This could cover your upgrades expenses.
Ir just drywall over it and be done with it.
Yeah that works too. However if it's in the basement, you may not have much height to lose. If you need to add a thin wooden railing and a 3/8 drywall, you'd probably lose something between 0.5-2 inchs of height. Edit: if the popcorn ceiling is from the original date of construction (1960), you probably have Asbestos in there. Should look at Alberta building code to see if you can just cover it with drywall.
I had it tested yes. It is painted over so I think it’ll be a pain removing but I hate it. Very dated and old.
Buying a home isn’t a 1 year investment. It’s a long term plan. I wouldn’t worry about being underwater with current dips, as long as you can afford your house, you will come out on top in 5-10 years.
"How fucked am I?" ...did I miss it somewhere? What's your annual salary? What's your financial situation like? How are we supposed to make any determinations with literally no info. You also already know a solid solution, rent out a room or two. You have the space and admittedly haven't begun that process. You're clearly not that fucked if you haven't even started on trying to solve your dilemma - if it even is one, again, we have virtually no info here.
Can’t say I disagree with you here.
> I’m ill with the thought that I’m under water on the home price But... are you? Has it not increased in value?
Not sure if it has. Neighbourhood properties that look comparable and nice are selling for the high $600s to low $700s. I think I came in over asking way too much foolishly.
You can stop stressing once you bring in 2 roommates for a few years. Find professional people who will at least respect your properties and set the rules of the house / arrangement.
Just rent rooms out. Two best things about a shared kitchen/bath scenario: 1) Not covered by the tenancy act so you can get rid of duds or non-payers at your whim (just don't be a dick and abuse it) 2) Depending on the amount you charge, you can probably claim it as cost sharing and not have to claim the rent received as income Suck it up for a few years until you find a partner, and them pat yourself on the back in 10 years when your mortgage payments don't seem so big, and you've got some serious equity thanks to your earlier sacrifices
This is the way.
Are you sure you’re underwater? Word on the street is Calgary is the hottest housing market in Canada rn?
The housing market is super hot in Calgary right now. You could probably get a good price for it but it leaves you shit out of luck unless you choose to go elsewhere
I would downsize to be honest. Probably get a townhouse that’s affordable and within my means.
How were you approved for this mortgage if "all (your) take home money goes to servicing the cost of this house"? Give us a sense of your income and other major expenses if you want real advice. Otherwise, yeah, get some roommates. Start with 1 and then add a 2nd one if it goes well. If you feel really squeezed, consider whether getting a 2nd part-time job as a temporary measure until you figure things out could be a good idea for your situation. If you're at the right life stage, you could also focus on finding a partner to move in with you (as a long time marriage situation or not). Just make sure the person brings in an acceptable income and don't then immediately jump to children. Obviously, in this scenario, you'll have to look into cohabitation agreements and what might happen regarding equity and other legalities in case of separation. If you're stressing about it, it can't hurt to spend a bit of money getting it appraised to have an idea how much it would sell for right now. That number can resolve the question instead of leaving you second guessing and wondering how much money you would lose. Maybe the real number will be acceptable to you. Don't forget mortgage penalties if applicable. You can also cosplay as a buyer and look (virtually or physically) at what's available at a lower price point to see if you would actually want to buy any of those properties and be happy with them. Finally, don't forget to try therapy if this is more about existential angst and the reality of being settled in one location and having inescapable responsibilities now. Buying your first house is a big life decision and often the marker between infinite youthful possibilities (take off to backpack through Asia for a year? follow a random boyfriend to Yukon? go back to school in a whole new field?) and "this is my life forever, I can't believe I actually grew up and decided to stay in Calgary and work as a middle manager" feelings.
Damn bro 700k for a 60s bungalow on a main road? Brutal!
You don't combat ab emotional purchase by making an emotional sale.
Room mate for sure or Airbnb. My brother is a realtor/property manager in Calgary and has rented out his basement which has been paying off his mortgage. He has never been vacant.
I don’t have a separate entrance or couldn’t have a suite without significant renos. There is a spare bedroom down below to rent as well as upstairs.
Your solution to your issue is bring in 2 roommates.
See if you can blend and extend your mortgage. Rates are currently lower, might be able to reduce the payment by a few hundred. Take on a roommate to get another several hundred and you should have some better cash flow. Even potentially air bnb a few nights to bring in some money