Things that make you go hhmm.... 18

Here it is 15 years after moving into this house, I finally see a light at the end of the tunnel and make it known that I would like to purchase the house.

First, let me give you some of the history.

The landlord who owned the property when I moved in, was asking $109,900 for it at the time. It certainly did not look to be worth that.

I asked if he would be willing to setup a rent to own deal with me. He said sure, no problem, just double the rent! That would be $1,300 per month. Not likely anyone would be doing that.

So, he lost the property along with all of the others he owned in the area, they were repossesed, wonder why?

Now the bank in Toronto had the property and I asked them for the same sort of deal. There had been only $86,600 outstanding on the mortgage but they wanted nothing to do with the rent to own option, they wanted cash up front. So I waited.

The property went through a power of sale and sold for just over $40,000.

We now move to the present landlord. Just after purchasing the property, we had to have the furnace cleaned and found that it had been leaking carbon monoxide into the house, my family and I breathing it unknowingly , for over a year. For about $2,000, he had to replace the furnace. The next expence for him was about three years ago, when he decided to replace the shingles, they were in pretty rough shape.

Now, the numbers. I have been paying $650 per month over the 15 years which equates to over $122,000. Think about it, I have paid far above what the original guy wanted, half again more than the bank was owed and three times what the current guy paid.

I pay all of the heating costs (oil), electricity, water, sewer, fire protection, water heater rental, lawn maitenance and the appliances are mine. To date, he has paid for a furnace and a roof, taxes and mortgage. Not a bad deal for him, right?

The current one has suddenly become Mr. Fixit now that he thinks I'm going to purchase it.

He has even provided me with a name of a mortgage broker to deal with.

The hhmmm.... comes down to the final statement.

He says, "The property values have really gone up and I'll have to get it valued but the way it would work is that the difference of the value and what I want for it would be considered a dummy loan that I would be giving to you"

I ask, "WHO IS ACTUALLY GETTING THE SHORT END OF THE STICK ON THIS DEAL?"

Expensive hhmmm.....

Thoughts