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Question for the Money Doctors

Question submitted on Dec 30, 2018.

Question

Husband and I work in a religious organization, variable income. Average 46,000 annually. He is 65. He will work at least another 7 years. Sold our home in Canada at a significant loss and then lost another 25% in exchange to US dollar. We have $173,000 in savings. We rent at $700 with our organization, but will not have this rate if we retire. Considering a $240,000 30 year loan to purchase a house and build a small retreat/tiny home to lease. What is our best option? We will not likely relocate.

Answer

The PI on a 240k loan today will run you about $1,216 a month which is mostly interest.  You will also have taxes and insurance which will bring the payment up to around $1600 or so a month.  That is over double what you are paying now.  How much revenue do you expect to make on the rental property?  If not much, it seems like you best bet is to stay put at the $700 as long as you can, save what you can and then when you must retire, figure out the least expensive alternative. 


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