Buy a condo w/o mortgage or a better one with?

[bel_and_the_dragon]

@dbog Considering you are young and have exceptional money management skills (or else just a big source of it) a small mortgage to upgrade to a more valuable condo (both in terms of you getting more enjoyment or utility out of it as well as the sellability like you pointed out) would be a good way to use debt.

I'm really averse to debt however you would have a strong equity position, if I were in your shoes I'd buy the home I can see myself living in for the longest duration, the more you settle the sooner you will want to upgrade thus incurring a whole lot of unnecessary costs. Alternatively you could focus on stacking as much cash right now in the interim and possibly skip the mortgage too... or if you don't mind managing tenants in Toronto you could alternatively buy the cheaper condo in cash, live there long enough to save a down payment on your upgrade and when the time comes then move your primary residence to the nicer place and rent out the first one, if you are so inclined to be a landlord.

The nice thing for you is having a paid for home gives you so many options.

 

[ptrnoy777]

@dbog If you’re thinking of moving downtown you’re definitely going to need that down payment if you want something that isn’t a bachelor on the first few floors it seems.

 

[belnumcree]

@dbog Are you looking to side-grade or upgrade? Going from 1bd to 2bd vs 2bd to 3bd (and the varying number of bathrooms) will have different price points.

Say you have a 2bd2bath apt in Burnaby - it's already pretty good for a single guy if you were to side grade as a 3rd bedroom would be overkill.

Figure out your wants then figure out if it's "possible" with or without the mortgage. Either way, you're in a good position to afford a place in Toronto.

 

[calvinfabian]

@dbog With your situation, there's nothing wrong with taking on a small mortgage in exchange for a slightly larger place if the place is going to suit your lifestyle and provide the extra space you'll potentially need in the future. The debt you're incurring would still be significantly less than most people take on when buying a place.

 

[purplegirl50]

@dbog I strongly urge you to do some research on the condo market here. It’s a very shaky sector. Personally I would stay away from them. If you’re looking to put the $750k down and take on a small mortgage to upgrade, look into some of the semis and townhouses. There’s some really gorgeous areas in that range. You’ll find much better resale value and likely a better living experience.