Monday, May 16, 2011
This is his look when I say, "Do you wanna.....?" He knows cookie, go for a walk and go to the park so he cocks his head waiting for those words. He sings too. Serge wants to get him to sing, "I wanna ________" but just how can you do that?
Yesterday we went and looked at some condos in a big shiny new tower on the South Shore. (This is just on the other side of the St. Lawrence river.) See, with the crazy real estate prices up here, we're now in a position where we could sell the fiveplex we're in and have enough to pretty much buy a condo outright. And since we've got to refinance in a few months because our mortgage was a five year fixed on a 25 year amortization, it would be possible to sell without any penalties. I liked the corner unit with lots of windows and a view right on the river, and the Montreal skyline behind. Also, a front row seat for the summer fireworks shows. We loved the idea of being 10 seconds from the metro station, the inside garage with direct access to the building and of course the granite counters and shiny stainless steel appliances that are included. Oh and it's a ten minute walk from the college where I work.
Then we talked ourselves out of it. See, smart investors know that maximum leverage is the key to building wealth. If we cash out now, the building wealth part will slow. The smart thing for us to be contemplating is to sell this block and buy a bigger block, such as an eightplex and building equity and appreciation there. We talked ourselves out of that too though because it's a lot of work and it's better to appreciate what you have than go jumping into the unknown. There's some big expenses coming up here in the next few years, some masonry work, the roof and a little basement leakage problem that isn't bad yet, but surely will worsen. I'd love to avoid those, but similar expenses are inherent in any building. The shiny new condo with no tenants and no repairs to be made sure sounds great, but in the end, I think we are making the adult choice.
Of course that could change. The day before yesterday we were talking about cashing everything out and buying a Tim Horton's franchise.