I own a mortgage-free house worth around $450,000 and I am relocating to Calgary to start a new job. I quit a very lucrative executive job (that I hated) to take a much lower paid job (the salary is ridiculously low, probably the equivalent of a junior greeter at Wal-Mart...but I love this new job), and without a rental income, or selling my house, I will not be able to afford living in Calgary. Luckily, I don't have any loan, debt or financial obligation, and I have a very frugal lifestyle. I am debating whether it would make more financial sense to rent the house or sell it. I have a serious and reliable person who is willing to rent my house for $1,900 + utilities on a 2-year lease. The only expense I would have to incur are municipal taxes (annually $2600). The house is in good condition and would likely not require any upgrade or significant expense in the next few years except regular maintenance.
I don't know much about investing and real estate, but my thinking is that it would be more advantageous for me to rent the house, use its equity to buy a property in Calgary, and use the rent money to pay for the mortgage and other monthly housing expenses. I'm pretty sure that at my current salary, I would not qualify for a mortgage, but thanks to my former credit rating, I still have a huge line of credit and a $50,000-limit credit card, both at zero. I'm also thinking that keeping my house would allow me to sell it at a higher price when the economy gets better.
I would appreciate any recommendation on what the best option would be in my situation.
Thanks in advance.
I don't know much about investing and real estate, but my thinking is that it would be more advantageous for me to rent the house, use its equity to buy a property in Calgary, and use the rent money to pay for the mortgage and other monthly housing expenses. I'm pretty sure that at my current salary, I would not qualify for a mortgage, but thanks to my former credit rating, I still have a huge line of credit and a $50,000-limit credit card, both at zero. I'm also thinking that keeping my house would allow me to sell it at a higher price when the economy gets better.
I would appreciate any recommendation on what the best option would be in my situation.
Thanks in advance.