Should I sell or keep the property ?

Hi Folks,

I own a 2 bedroom condo with a garage in a 2008 built condo building in Cote des neiges area in Montreal close to a metro station which is currently rented at 1500 CAD per month. The current market value of the condo is somewhere between 440k - 460k (municipal assessment is 394k). The cost of monthly maintenance of the condo is 1736 CAD per month so i am shelling out 236 CAD from my pockets each month (see breakdown below).

Monthly Expenses:

  • Mortage premium = $1200
  • Condo fees = $268
  • Municipal tax = $180
  • Insurance premium = $50
  • School taxes = $38

I have a remaining mortgage of about 350k on my principal residence which I have been planning to reduce by making a lumpsum payment and I am considering one of the following two options:

  1. Sell the condo which would bring me about 420k (after paying the commission) where i could make a lumpsump payment of 200k towards the mortgage of principal residence and keep 20k in the emergency funds.
  2. Keep the condo for 5 more years. Refinance the condo and take out about 100k - 150k to pay towards the mortage of the principal residence.

I am really confused between the two options. Part of me tells that the condo has reached its peak potential and it would be better to sell it off. And the other half tells me that it would be better to keep it for future.

I would really appreciate some guidance and feedback from you.

Thank you in advance.