Author Topic: Military Housing, CFHA, and the cost of renting a PMQ (and annual increases) (Read 157144 times)

Task · « **Reply #400 on:** August 04, 2010, 13:41:42 »

George said it best. Also note the higher the down payment the less CMHC fees you will pay.

To help you determine what you may want to do, here is a link for Mortgage <and other> calculators.

www.citizensbank.ca/Personal/Calculators/

Tango18A · « **Reply #401 on:** August 04, 2010, 13:57:24 »

And just because a house looks like a good deal, always get a home inspection done. This will save you money in the long run, costs for tradesmen to repair housing issues are quite high.

dapaterson · « **Reply #402 on:** August 04, 2010, 15:01:58 »

Costs to consider on purchase of a home (a non-comprehensive list):

Land transfer tax

Lawyer's fees

Hookup fees for utilities

Security deposits for utilities

Window blinds and curtains

Cleaning of the house

Appliances

Yard tools (lawn mower, snow blower etc)

Furniture

Refinishing/repair of house (paint, new carpets etc)

Moving costs (movers, or rent a truck and buy pizza and beer for friends. Voice of experience: Move first, beer later)

They can add up to anywhere from $5-15K, depending on what you want.

Tango18A · « **Reply #403 on:** August 04, 2010, 16:28:01 »

Along with repairs after your friends help you move in.

dapaterson · « **Reply #404 on:** August 04, 2010, 22:21:55 »

Hence why it's move, then beer.

Tango18A · « **Reply #405 on:** August 04, 2010, 23:34:40 »

And it never hurts to have a friend that knows how to do drywall, especially the taping and mudding.

captloadie · « **Reply #406 on:** August 05, 2010, 03:09:06 »

In most areas in Canada, house prices are either stagnate or falling at this time. Most people would be better off waiting a while longer, as housing prices will be coming down (see the other thread on HEA for examples).

For Kingston, now is the worst time to consider buying a house. Posting season always ends up inflating prices, as people desperate to find a house pay more to get what they want. You should look around now, find a few house that have been for sale since the spring and wait until late fall to see if they are still available. It is almost guaranteed the seller will be getting desperate and will have dropped the price by then.

Also, either get a good realtor, or someone who really knows Kingston, because there are some great deals on houses, in areas that you wouldn't/shouldn't live and will never be able to sell.

Pusser · « **Reply #407 on:** August 05, 2010, 09:26:13 »

Quote from: dapaterson on August 04, 2010, 15:01:58

Costs to consider on purchase of a home (a non-comprehensive list):

Land transfer tax

Lawyer's fees

Hookup fees for utilities

Security deposits for utilities

Window blinds and curtains

Cleaning of the house

Appliances

Yard tools (lawn mower, snow blower etc)

Furniture

Refinishing/repair of house (paint, new carpets etc)

Moving costs (movers, or rent a truck and buy pizza and beer for friends. Voice of experience: Move first, beer later)

They can add up to anywhere from $5-15K, depending on what you want.

Keep in mind that several of these costs are covered by the CF. Talk to your OR and/or CFIRP.

As for moving, I recommend (from experience) you find yourself a local mover who charges by the hour. Compared to renting a vehicle and providing beer and pizza to all your friends (and you will only find out who your true friends are AFTER you ask them to help you move), paying $75-100 an hour for two guys who bring their own truck is a bargain.

Tango18A · « **Reply #408 on:** August 05, 2010, 09:27:52 »

Quote from: Pusser on August 05, 2010, 09:26:13

Keep in mind that several of these costs are covered by the CF. Talk to your OR and/or CFIRP.

Only if you are still in the 2 year window of being posted to a new base. Otherwise its out of pocket.

Spectrum · « **Reply #409 on:** August 05, 2010, 12:46:56 »

Thanks for all the responses so far. Would it be a good idea to go talk to SISIP about this sort of thing? I wouldn't be buying until fall at the earliest but I am starting to plan long term. I'm currently on a restricted posting but I was told that restriction would be lifted once I am given permission to move out.

I religiously put the majority of my pay into savings while living in shacks. My logic is that if with my savings each month and the money I would no longer spend on R&Q combined I could get a mortgage and still eat and cut my hair, it might be better than living in a room with 3 other guys and being ration strength. My money just sits in my bank anyways. Is 20 % a fair downpayment?

For those that know Kingston a bit, could anyone help me out? I keep hearing of all these "bad" areas where I shouldn't buy. From what I can gather they tend to be north of Princess St. What about the subdivision north of base? I think it's called Greenwood park? It looked nice enough when I came through on the way here.

Is it generally hard to re-sell a small (read 2 bedroom) house? What if it is almost new?

(Oh, and if anyone has any in depth advice feel free to PM me, I hope I haven't derailed this thread too much)

Thanks in advance.

George Wallace · « **Reply #410 on:** August 05, 2010, 12:54:05 »

I lived in Grenadier Village, less than 5 min North of Base, right off Hwy 15 at the Ultramar, after LaSalle High School. Lots of CF members live in that area. That used to be known as Pittsburg Township, and has really grown in the last fifteen to twenty years. Very nice homes in there. Rumours that the CF will be renting in the new Industrial Park, so where ever you will work, will only be a short drive, or even a short walk. A fairly decent place to live.

PMedMoe · « **Reply #411 on:** August 05, 2010, 13:25:56 »

Greenwood Park (just north of Grenadier Village) is nice too.

Tango18A · « **Reply #412 on:** August 05, 2010, 15:20:29 »

Greenwood park aka PMQ North. The drive down 15 in the morning is quite retarded though. Plan on a 30min drive at peak times during the day. Or have a 15 min bike ride.

Pusser · « **Reply #413 on:** August 06, 2010, 12:01:22 »

Quote from: Tango18A on August 05, 2010, 09:27:52

Only if you are still in the 2 year window of being posted to a new base. Otherwise its out of pocket.

Correct. The original post (at least the one on this tangent) implied that the individual was well within that window.

On another note, SISIP Financial Services are more about long term (i.e. retirement) planning. I'm not sure what they could do for you in a more short term scenario such as this. Be careful about investing any down payment money in the interim. You don't want to put it into an investment that will penalize you if you take it out too soon. Also keep in mind that many long term investment plans will actually lose money in the short term (and return big in the long term).

On the size of the down payment, keep in mind that anything less than 25% will require you to take out mortgage default insurance with CMHC. If the CF is covering your costs, this is a claimable expense (especially if this is your first house). When you are posted and go to buy a replacement house in your new location, you can only claim that part of mortgage default insurance that you would pay if you transfer ALL your equity into the replacement property. I know that thinking of buying your next house when you're still thinking of buying the first one seems a bit far ahead of yourself, but forewarned is forearmed! The rule of thumb on posting is if you want the CF to cover the entire cost of mortgage default insurance is to ensure you transfer all your equity to the new house (ie. don't skim off the top to buy a new car). However, if you put 25% or more down on your house, there is no Mortgage Default Insurance and this problem goes away.

On a final note, do not confuse Mortgage Default Insurance with Mortgage Life Insurance. MDI is required by law if you do not have a down payment of at least 25%. Mortgage life insurance is something the bank will try to sell you (yes, you pay for it and it is NOT claimable from the CF under any circumstances). Essentially, it pays off the mortgage if you die. A far better deal is to take out SISIP Optional Group Term Insurance (OGTI) for at least the value of the mortgage. It's a lot cheaper and a better deal. Then if you die, your heir will have enough money to pay off the mortgage. The bonus is that the longer you live, the less the remaining balance on the mortgage will be, which means the more actual cash in your heir's pocket - you may not want to explain that to your heir though

The life insurance your mortgage lender will try to sell you will only pay off the mortgage with nothing left over.

jsolutions_response · « **Reply #414 on:** October 04, 2010, 19:45:33 »

Is there any CFHA in or near Windsor, ON?

Task · « **Reply #415 on:** October 04, 2010, 19:54:27 »

I don't think so...

I found this link that shows where they are available.
http://www.cfha-alfc.forces.gc.ca/hl-el/hl-el-eng.aspx

jpljpl · « **Reply #416 on:** January 03, 2011, 00:35:37 »

Wow - thats quite a bit!
I am heading out to Kingston next month for a CT posting and applied for CFHA and didnt know it would be that much.
Mind you, i am single and not asking for a lot of space.

Are there any other living options for a single guy ?
Any good-value single appts or areas off base / close to the base or on a convenient bus route (preferably bus#12) ?

Spectrum · « **Reply #417 on:** January 03, 2011, 01:11:53 »

I have a 3 bdrm PMQ there, and it's actually not bad at all. Try to get into the apartments if you can...there are quite a few singles living there, and the rent isn't much, especially if you find someone to move in with. It takes me about 15 minutes to walk to work (at least from the few times I've done it...haven't lived there much due to courses, taskings and lve) and driving takes only a few minutes.

Short of buying my own house north of the base in Grenadier Village/ Greenwood park, the PMQs seemed to be the best option for myself.

kratz · « **Reply #418 on:** January 06, 2011, 21:39:09 »

Just received, "The letter" from CFHA this week. Our monthly RHU rate is going up $2 per month starting in April 2011, here in Borden. That's not a large increase, so it's not too bad this time around.

PuckChaser · « **Reply #419 on:** January 06, 2011, 21:45:43 »

Second letter in Kingston, no increase in RHU cost. Only increase was $1 a month for water.

GAP · « **Reply #420 on:** January 06, 2011, 21:51:12 »

I'd have to look, but it looks like Wpg went up about $21 and the water rate went up.

CDNAIRFORCE · « **Reply #421 on:** January 06, 2011, 22:00:41 »

I started off in April 2008 in Cold Lake paying $695 (+water) for a 11/2 storey duplex with garage. April 09,10,11 increases have been +100, +40, +50 respectively. This is the first year water has gone up in three years. Up a whopping $1.10 per month. So April 2011 will put me at $930.94 (but the roommate pays half of that). Even without the roommate though I never had a problem as a Private paying the bills. Granted I don't have kids, don't drink away my pay at Legends every weekend and drive a ten year old car. I think we have it good compared to the many civvies in Edmonton paying $1200 for one bedroom apartments on a gross yearly income of $25-35000. Plus I back onto the woods, albeit a noisy quad trail as well, and have only one next-door neighbour. Plus the 5 minute drive to work is nice. I could buy but choose not to right now. But I'm saving in the meantime unlike the people in Q's here who say "we don't make enough" and "the rent is too high" yet all have a new truck in the driveway along with an RV, motorbike, boat, quad, and/or ski-doo. My current neighbour actually has all of those things.
CFHA up here is very reasonable. I've had prompt service. No it isn't Mike Holmes quality work that's for sure but you get what you pay for and I'm not paying for it. The people I know up here who have nothing good to say about CFHA are the ones with absurd requests. Such as my co-worker who thought there was too much noise (in a duplex) from the neighbour's tv so the two of them wanted CFHA to tear down the common wall and re-insulate it. There seems to be a correlation to the service you receive depending on how you treat the ladies at the office. And rightly so.

Pusser · « **Reply #422 on:** January 07, 2011, 10:26:11 »

Years ago, the most common request from the PMQs in Halifax was not for more bedrooms or square footage, but for more parking spaces (one each for the car, second car, RV, boat, ATV,etc.)

sta1wart · « **Reply #423 on:** January 09, 2011, 02:09:50 »

Quote from: CDNAIRFORCE on January 06, 2011, 22:00:41

I started off in April 2008 in Cold Lake paying $695 (+water) for a 11/2 storey duplex with garage. April 09,10,11 increases have been +100, +40, +50 respectively. This is the first year water has gone up in three years. Up a whopping $1.10 per month. So April 2011 will put me at $930"

That's over a 30% increase in rent over 3 years! That's what everyone in the q's in Cold Lake is upset with. I appreciate that any maintenance stuff gets handled pretty quickly... usually, but 30%..... come on. And as for your neighbour with all the toys, maybe he works a second job, believe me when I say I know tons of guys out there doing that.

CDNAIRFORCE · « **Reply #424 on:** January 09, 2011, 02:46:16 »

Your numbers make sense. Unfortunately the rates, as high as they are, are still a lot better than the alternative prices of renting anything OFF base in Cold Lake. Apartments are minimum $1000, condos and basement suites often averaging $1200. Our PLD is 320 for the full rate which I think deserves an adjustment. Maybe not as high as Edmonton, but an adjustment nonetheless.

He may very well have a second job to pay for those toys. Never talked too him so I don't know. 90% of the time you get a pizza delivered here it's by a CF member. Unfortunately for all the ones financing their toys with part-time jobs, there are just as many that get into the "trap" when they first get here as brand new privates. Off they go to buy a Hemi Ram and a 9 grand quad that ends up on kijiji a year later. Then those same privates (and some Cpls who have been drawing spec pay for years and should know better) sheepishly admit when being invited to wings at North 54 2 days before payday that they "can't go due to lack of dough." I hate to say that I have had to help friends out of jams more than a few times. One got "advised" to consolidate everything at Citi Financial. I found out the hard way how that place works when it used to be called Avco. Not good.

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Author Topic: Military Housing, CFHA, and the cost of renting a PMQ (and annual increases) (Read 157144 times)