Downgrading home to live in more desirable place?

**MomToTwoBoys** · 07-04-2010, 01:12 AM

DH is looking to possibly transfer to Edmonton, which means we'd all be moving. We have two places we'd love to live in: Sherwood Park (on the east side of Edmonton) and Spruce Grove (the west side of Edmonton).

Sherwood Park is considerably more expensive in housing prices. Spruce Grove is cheaper, but is still more expensive than Edmonton.

Both places are pretty good as far as community is concerned. They aren't as large as Edmonton, but we're ok with that. We just want to be closer to his family.

Housing prices for duplex/single family homes in Spruce Grove start out at about $260k. In Sherwood Park, it's $295k. In Edmonton, we could get something for $225k but DH would prefer not to live in Edmonton. So now we're looking at the low end of Spruce Grove. There's a condo for $222,500 but it comes with a $160/mo maintenance fee and the taxes are on par with Calgary. With home prices expected to rebound here just before we sell, we're looking at clearing between $125k and $130k profit on the sale of this house.

I'd really prefer not to live in a condo. I don't like the idea of owning a home with someone telling me what I can improve and what I can't have. The condo I looked at, however, would require 0 work and comes with cable TV, landscaping, exterior maintenance, etc. It's also in a lot nicer of a neighborhood than we live in now and would be looking at living in if we moved to Edmonton.

So even with that, do we take the condo and the lower mortgage (but eat up the difference with maintenance fees and taxes)? Or should we go with the duplex/single family home and try to negotiate a lower price? We want a house to grow into.

**monkeywrangler71** · 07-04-2010, 10:55 AM

Personally, I would stay away from the condo because that monthly fee can go up unexpectedly if the building needs to make improvements. I don't think condos are very easy to sell either, unless they are an exclusive location. The monthly fee is equal to about $30000 more on a mortgage, not taking into account what it covers (but you can control those costs yourself by skipping cable and not upgrading the home until you can afford it).

I think you should look at a starter home in the best neighbourhood you can get into. It is most likely to hold it's value, and they are also the easiest homes to sell.

**brenda67** · 07-04-2010, 11:46 AM

A question for you..How do you even know that your gonna be able to sell your house right away?

**bookworm** · 07-04-2010, 12:48 PM

Hi, I live in Edmonton but really like Sherwood Park. I always go to the Costco there.
I would personally stay away from a condo. First, they are harder to sell if you decide to move. Second, is the condo fees and having someone tell you what you can and can't do in your home.
Also condo associations need to maintain am reserve fund for big repairs, so there may be big unexpected payments.

**MomToTwoBoys** · 07-04-2010, 12:56 PM

Originally Posted by brenda67

A question for you..How do you even know that your gonna be able to sell your house right away?

Because houses in Calgary aren't on the market for more than a couple of weeks. We're meeting with a listing agent as soon as DH finds out what's going on with his work, then we're doing the home improvements and listing the house two months before the move. DH has five weeks of vacation time left over, so he's taking that and we're renovating what needs to be done to sell the house.

Our house is in a fantastic neighborhood. It's catered to those who want to work downtown but can't afford to live there because the C-train station is a five minute walk from here. There's also a couple elementary schools nearby, loads of shopping and it's easy access to Highway 2 (which leads north out of Calgary and south towards the US border).

**Maine Girl** · 07-04-2010, 03:53 PM

i would personally go for a home, then you can do what you want to do.

**Libby** · 07-04-2010, 06:54 PM

From what we've spoken about - I'd opt for a smaller starter home that doesn't need work but could use a lil bit of redecorating if you kwim but also one that is solely yours - no condo fees...freehold! You'll be able to what you want to your own home w/o having to ask for permission first and there's no extra monthly fee that will skyrocket on you w/o notice.

Thats my two cents.

**MomToTwoBoys** · 07-04-2010, 07:19 PM

Yeah I didn't find out about the condo fees on the place listed for $222,500 until I searched on Exit Realty's website about it. That sort of put a damper on the place I wanted.

The one for $259,000 is a duplex and I'm not sure if it also has condo fees. I'm going to have to go back and check.

I found some really cute ones for $249k but the neighborhood isn't so great from what I saw on Google Maps. There was one really awesome house, but it was two doors down from a used car dealership. Bleh.

I found this one that's near a school:

REALTOR.ca - Property Details E3224652

We could put $15k into it and we'd still be paying about the same amount for a mortgage then as we are now. That one is in northwest Edmonton, which is where DH would be working. It also has a school across the street from it, which is killer.

We keep searching and I'm trying to keep in mind that we'd want it where DH doesn't have to drive an hour each way and that the kids have access to things they need.

**Michelle68** · 07-04-2010, 10:37 PM

Cute house, although it does look like it needs quite a bit of work. If it's in a good neighborhood and being that it's across the street from the school and so close to his work, it might be worth seriously considering, IMO.

**cottageliving** · 07-04-2010, 11:04 PM

It looks like a cute house. I like the really big kitchen and living room. Am guessing that 2 of the four bedrooms are in the basement since it doesn't appear to have a 2nd floor from the photos. Personnally, I prefer to buy older fixer-upper homes like this. You can really save on the purchase price, and then make it your own as you go along. Most people pass these by since they cannot see the potential or do not want to do the work themselves.
There is nothing in the photos to indicate any structural issues -- and you'll make sure to get a complete inspection to be safe. It looks to have a good sized yard as well. You can really make this into a nice home for you and your family. It is great that the location works so well for the family.

keep us posted!

**MomToTwoBoys** · 07-05-2010, 12:57 AM

I love the location that it's in. We had another bungalow that we viewed, but it was a block away from a processing plant and I'm concerned about the stench. This one has items in it that can be fixed. We can definitely do drywall patching and the floor can be refinished and stained. I'd have to ditch that horrible tile in the kitchen (looks like rolled vinyl to me) in favor of a durable tile. A little paint and it looks like it'd be great for us. DH does want something to grow into and this is definitely a house we could grow into.

It has the two big things I want in a house and it's got the one big thing that DH wants in a house. The location is fantastic, too.

**lparker** · 07-05-2010, 07:18 PM

Personally, I wouldn't spend $200,000+ on a small dump. I don't care where it's located. Maybe look for land a little outside town and build something modest or go manufactured housing like a modular home. You should be able to find something do-able that will total $130,000 or less and pay cash for it.

**monkeywrangler71** · 07-06-2010, 07:39 AM

Do you know what school it is? It's only good to be across from a school if it's a good school, and only if it's an elementary. The price is certainly good, but it looks like it might need a lot more than $15000 in work. Is that water damage? It may need to be gutted.

By the time you are ready to buy there will be other options anyway.

**PinkTulip** · 07-06-2010, 11:54 AM

Just an FYI. I live in Calgary and have followed the market very carefully for over a year. I would not assume your house will sell quickly. I have had friends who listed about a year ago. They have not had a single looker. I have also seen homes in certain areas that have been on the market for over six months.

Be very, very careful about where you move and what you buy in Alberta. The market has tuned quickly in the past few months. You don't want to be stuck in a home that has went down in value. The Herald just had an article the other day that sales have declined 40%.

My advice (which few people understand or will take). Rent for a few years. The Market is going down and will continue for a few years because house values don't match up with income (way overpriced here).

**MomToTwoBoys** · 07-06-2010, 12:25 PM

Originally Posted by lparker

Personally, I wouldn't spend $200,000+ on a small dump. I don't care where it's located. Maybe look for land a little outside town and build something modest or go manufactured housing like a modular home. You should be able to find something do-able that will total $130,000 or less and pay cash for it.

We absolutely cannot do that. We have a disabled child that needs special schooling, plus we have a younger child. We also will not live in a mobile home. I did that before and it's not the best feeling in the world to me to raise my kids in a home like that. I'm sure that others would, but out of personal experience and preference, I will not. Neither will DH.

Originally Posted by monkeywrangler71

Do you know what school it is? It's only good to be across from a school if it's a good school, and only if it's an elementary. The price is certainly good, but it looks like it might need a lot more than $15000 in work. Is that water damage? It may need to be gutted.

By the time you are ready to buy there will be other options anyway.

It's an elementary school. We put that home on "the list" for when we go to visit Edmonton in a few weeks. I did find more houses that are in the $230-240k range that are bungalows, so we're going to check out the neighborhoods that they're located in as well. We won't know for sure what kind of damage is in the house until we take a look in person.

Originally Posted by PinkTulip

Just an FYI. I live in Calgary and have followed the market very carefully for over a year. I would not assume your house will sell quickly. I have had friends who listed about a year ago. They have not had a single looker. I have also seen homes in certain areas that have been on the market for over six months.

Be very, very careful about where you move and what you buy in Alberta. The market has tuned quickly in the past few months. You don't want to be stuck in a home that has went down in value. The Herald just had an article the other day that sales have declined 40%.

My advice (which few people understand or will take). Rent for a few years. The Market is going down and will continue for a few years because house values don't match up with income (way overpriced here).

We have people in our neighborhood that sold their houses in a month. A couple down the street sold theirs in about 3 weeks. The bungalow a block over sold theirs in about two months. I have also been following the market very closely for the last seven months. I know about the decline in sales and that was due in part to the interest rate changes that were made in April. It's also expected to rebound come September.

I absolutely refuse to rent. I would buy a condo over renting. I'd rather pay $600 a month in a mortgage than $1500 a month in rent.