Then the house next to Paul’s old family cottage in Kenora, Ont. went up for sale.
It was everything they needed: a cottage-style house fit to raise the children and 160 acres to continue farming for their business. When they choose to wind down the company they’ll be retiring in a beautiful area with services nearby in town.
So they picked up their life in Sanford and plunked it down 250 kilometres away. There was just one problem.
“We were stuck with two properties,” says Paul. They never intended to own two homes. They expected the Sanford home to sell quickly, but months had dragged on and they were still paying for a house they weren’t even using.
Many think they can float two homes, either short or long term, if they have enough money for a down payment. They don’t consider the extra monthly mortgage payments, the maintenance costs, and the general upkeep. So before you start looking to move, slow down and do some serious calculations. Start by asking yourself how the purchase will affect your retirement plans and if you can survive in the worst case scenario, such as the former home doesn’t sell.
If you’re currently the proud owner of two homes, think about some clever work-arounds. After a month with their old home on the market and no serious bites, Paul and Kelly decided to try their luck renting it out on Airbnb. To their surprise, bookings started coming in. It’s even given them ideas for the Kenora cottage, like renting out self-made yurts in the home’s backyard forest.
Renting out a former home long term might also work. Consider putting it back on the market in the fall or spring when there are more buyers and adjust the price to match the local market. Invest in a stager who will ensure the place looks appealing for your target buyer.
It’s better to avoid become a two-home owner if that wasn’t the plan. But with smart strategies, you can get past it and look ahead to a more financially stable future.
As with every other part of your financial life, the best place to start is by having a talk with your professional advisor.
This column, written and published by Investors Group Financial Services Inc. and Investors Group Securities Inc. presents general information only and is not a solicitation to buy or sell any investments. Contact your own adviser for specific advice about your circumstances.