financing

The most hair raising part of renovations, aside from whether your house will be destroyed or your marriage will fall apart, is the financing. The fact is that we should never have been able to afford to do this renovation. We do not, at present, have the income to support such a large mortgage. The catch is that without the renovation, we would not have a house that would have lasted much longer, and we would not have a suite that we could rent to supplement our income and keep the house in good repair.

We probably should have bought a more modest house in the beginning, but we had our hearts set on this house and we were willing to sacrifice every ounce of sweat equity that we could to make it a viable project.

Our taxes are done and we are going to sign the forms with our accountant momentarily. With that done, we will be ready to re-mortgage the property away from the loan sharks that have carried the renovation since February.

It would be advantageous to have a renter lined up for the re-mortgage, so we could show the income we expect to realize from the suite. I want to set up a short stay accommodation business and rent the suite for a higher rate. It means more work for me, but it also means we don’t have to try and settle with a long term tenant right now, when we have so much up in the air.

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