My wife and I anticipated this period of our lives to be the toughest financially before we made some major career decisions and moved to a different city. Our original plan was to wait out these next two years as she finishing up her fellowship in Montreal. After that, we would sell our condo in Toronto and move to a place where she can begin her practice and I'll find work in my industry. I'm looking for some perspective on if we should stick to our plan or sell our condo to help relieve the stress of student lines of credit.
Financial background
Mortgage - 389K @ 1.74 Fixed with 2 years and 3 months remaining to this term.
Condo - 1bdr in Mimico right on the lakefront. ~580SQ ft
Realtor estimates it could sell for between 600-650K, Condos.ca put it at $560,00 (Based on $967/SQ FT)
2,500/Month in rent from our tenants.
Mortgage payments $1,486/Month, Condo fees @ $603/Month, $425/Year for insurance. Total per month - ~2,125/Month
Student Lines of Credit
LOC1- $270,000 @ 7.10%
LOC2- $105,000 @ 7.20%
Personal debt
$50,000 @ 0% (Currently making $500/month payments on this until I find a job.)
Career background
Me- Recently completed my MBA at an American school and trying to transition into a career in corporate partnerships (Within the sports industry). Targeting jobs that pay 75-95K but currently do not have an income.
Wife- Fellowship program working towards becoming a specialized surgeon. The current pay is $4,100/ Month take home but in 21 months her income should be about $385,000/Year according to the average pay in Ontario.
Monthly Financials
Income - $ 4,100
Currently, our budget is comparable to living like students but we are at $4,100 in expenses before paying any interest on our loans. Once I find work, I will be using my income to attack student lines of credit. Roughly somewhere between $4,100- $5,200/ Month will be applied toward the student line of credit.
Question
Does it make sense to hang on to our condo in Toronto until our mortgage term ends in December 2025? Or would we be better off selling it now and using the equity (Minus transaction fees) to pay off debt? I would greatly appreciate different perspectives on approaching this situation.
Plus, you can buy fractional shares starting at just $1.
I net $3700/month. Here’s my financial breakdown:
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$14,000 in WS TFSA (mainly XEQT)
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$4,500 work accounts (DCPP, TFSA, stock)
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$3,000 in liquid cash/emergency fund
I’m very lucky to live with my parents who allow me to board with them for free. I invest $1,000/month and spend $1,500/month. I am trying to lower my monthly spend.
My only debt is a $5,000 student loan that is currently interest free.
I’m looking for advice - the $1,000/month is going to my WS TFSA. I don’t have a house but I would like to buy one within the next 5 years.
What would you do - am I making the right decisions with my money?