Wednesday, 6 October 2010

Debt vs. Savings

Furniture (Brick card):
Start: $1471.68, July 29
Currently owe: $500
Paid: $971.68

LOC:
Start: $4450
Currently owe: $3325
Paid: $1175

Visa:
Current: $0

Mum: $12,500 for new(er) car
She said to defer payment until next year, as most of this came out of her TFSA and she can't put anything back in until next year anyway. This also helps me in that I can pay down my interest bearing accounts before I start paying her back.

Savings

RRSP 1: $11,059.61
RRSP 2: $2200.00(ish)
TFSA (EFund): $1042.20

I'm still perusing the real estate website. Two places I've got my eye on are STILL for sale! One for going on four months, the other at least two. Both are now the same price. They're also in the same trailer park (court?), so are comparable properties, size-wise and cost-wise. I'm already thinking what I would offer: $10K less than current asking price which, according to the on-line mortgage calculator, would give me a monthly mortgage of between $250 & $420 (depending on amortization). I'd have to add in pad rent, plus utilities, plus maintenance costs, plus heating, so it wouldn't necessarily be that much cheaper than what my current costs are, but it would be MINE.

Until I'm out of debt, however, I can't take the risk to look. I'm a super-impulsive person (although not as bad as I used to be!) and I have a sneaking suspicion I'd walk away a new home owner if I went to look. So I'm going to stay away and just keep my eyes open. I need to have more money for a down payment, plus a more substantial EFund in place before I rush into something like that.


8 comments:

FB @ FabulouslyBroke.com said...

The general rule of thumb for real estate offers is 10% - 15% less the asking price. :) FYI (my experience from watching HGTV)

At any rate, a hefty down payment is always a good idea (20%) + at least 5% in extra cash to put towards fixing the home/buying new wallpaper,tiles etc.

Then you also need an EF on top of that...

Jane said...

Hello from London, ON! Also remember that if your down payment is less than 25% CMHC kicks in so you end up paying more than the purchase price.
But yes, get rid of your debt first - that's the most important thing:) Cheers!

Middle Way said...

Wow! Not far now! It's nice to look ahead to where you would like to be because those ideas and dreams pull you forward and helps to focus on positive goals.

Exciting times ahead!

ND Chic'c Cents said...

Good job on your debt repayment. I like your blog and I added you to my blog roll. I would appreciate it if you would do the same.

Also, if you looking at a mobile home, make sure that you check into financing. Financing has tightened considerably here and its much harder to get financing for mobile homes than it used to be but certainly not inmpossible.

Northern Living Allowance said...

Hi FB! Thanks for the tips. I love HGTV, but don't get all the shows online unfortunately. Just what's offered...I'm trying to remain calm and level-headed about the whole house thing, knowing it's a HUGE undertaking. Part of what I'm doing is trying to buy things for the house now, while I'm renting, so that I'll have less (a bit) outlay when I actually get the house. Hopefully it will work like I've planned... ;)

Hi Jane! Thank you for stopping by and leaving a nice comment! I'm originally from Toronto myself. It's nice to meet you. I've also added you to my blogroll.

Hi MW! I know - it's so close! It feels great, so I just hope I don't lose my momentum. I worked today, so the double-time will really help the next paycheque and I'll bet I'll have that Brick card gone by the end of the month!

Hi NDChic! Thanks for stopping by. It looks like you're off to a good start on your blog - hang in there! It's a bumpy ride, but quite exciting and this is such an awesome community for finding motivation, inspiration, help, guidance, etc. Tremendous knowledge, too, to take advantage of.

You're on my blogroll.

Reyna said...

Hi, I followed you from a comment on Butterfly Collector.

My comment has nothing to do with your post but about the comment you made to her.

I can relate to what you spoke of regarding relationships.
I wrote a blog you might relate to on Aug.20th entitled "Sometimes your knight in shining armor is just a retard in tin foil."
If nothing else it might bring a smile to you.

Glad I found you!

ND Chic'c Cents said...

Northern Living, Happy New Year! I hope you're doing well. It's been a little while since you blogged. I would like to see an update :)

Jolie said...

miss you

hope you are well.