Single, 40 year old female
No retirement, currently $7,000 in emergency fund
I live in Mexico and have a Mexican mortgage. My mortgage is $1,500 usd for 1b/1b condo. If I rented out the condo at most I could rent or Airbnb for $700 usd/ month
Local rents in the same area are about $800 usd or less for a 2bedroom.
The mortgage is so high because it’s only 9.5 year term. I current have 8 years left.
When I bought it, my income was much higher but due to the economy and in my line my of business, it’s plummeted. I can still pay my mortgage but I don’t know when my income will go back to what it was. Initially I was making 8k a month now to 5k a month and dipping lower.
I can’t rent out a room and not able to refinance the loan. If I sold now would be a huge loss. My profit would be less than my down payment
The area is up and coming, 15 min from the beach. But I doubt the local rents would ever equal my high mortgage in the life of the loan.
Do I sell or keep my condo
byu/Forward-Return8218 inpersonalfinance
Posted by Forward-Return8218
8 Comments
Sorry how are you selling at a huge loss while still having a profit? Doesnt really make sense
So if you rent it, you’re losing $800/mo.
If you sell it, you’re losing how much?
It’s ultimately a math problem.
I personally would just suck it up and find a second job. Even if it’s gig work. 8 years isn’t very long and not having rent in the near future is hella appealing.
$5k a month income means your mortgage is less than 1/3 your income. Keep it and try to make more income again.
What are your other expenses? Can you list them out on a table?
Sell. Rent a 2BR and get a room mate until you make more money and improve your overall financial situation.
10 year mortgage is on a short side. Do you maybe have option to extend it to 20 years to lower your payment? Of course if rate is low or near your current rate.
You really need to try to work through this and keep the condo. You may not have another opportunity to own in the future.