So, we've had an idea brewing. I'm open to thoughts and suggestions.
Here's the deal:
- DH is a student and has one more year until he's done school. I'm the current breadwinner and am pregnant so will be off on maternity leave all of next year (it will be a tight financial year given that we'll have to live on half of one salary).
- we own a home out-of-town which is being rented out and is totally self-sufficient (i.e. paying for itself)
- we're currently renting a 1BR apartment in the town where we both grew up, meaning parents are near by (i.e. down the street) and it's where I work (career, contract, stable).
- A house in the neighbourhood just came on the market for a very reasonable price (modest bungalow, finished basement, huge lot, within school boundaries for DS)
So, we'd be crazy to double our housing costs and give up our 1BR penny-pincher apartment for a substantially larger mortgage/tax/utilities payment going into an already tight financial year, BUT (here's the hook)...
- We have friends who are moving back to town with the intention of saving money and proposed renting a town house to share (my initial reaction was "umm.....no...."). But this house that just came on the market would be great for sharing- we'd take the upstairs bedrooms and living space, they'd have the basement, and we'd share the kitchen. This means we could be in a HOUSE for the same price we're paying for our current 1BR apt. (there's not been anything that's come up in the rental market that would equally suit our needs),
Pros: more space, large lot, nice neighbourhood (welll...same neighbourhood...), most decently priced house to come on the market in a loooong time, it's finished and wouldn't need any work, financially would work splendidly for the year so long as our friends comit to a full year then DH and I would be back to work with dual income, my parents are able to help us financially to an extent, but would be uncomfortable in doing so if we keep both houses
Cons: some risk given that we'd be dependent on our friends' contributions, not 100% positive that it's where we'll want to be in 5 years (though when we leave we keep coming back, and now we have DS's school and my work here), we already own a house so I'm not sure how numbers will work out (qualifying for two mortgages, will we need to sell one to get the other?), we don't have a significant amount of savings (for down-payment, major repairs, not to mention tuition and FFEF).