Hello
1st time poster. I`ve read the Real Estate Investing in Canada and am nearly finished the 97 tips book. Both are great books and I feel that I have learned a lot and want to get started in investing. I am currently on my 3rd buy-renovate-and-sell home in the Vancouver area, and now feel ready to get into the rental aspect of real estate. (Definitely looking to purchase a rental outside the Vancouver area due to our extremely high prices here)
The Vancouver area has been great for creating equity in a short period allowing me to pay off some large school loans while still leaving me with 25% equity, however, my family and I would like to purchase a larger home. To do this, we will need to spend approx. $510,000 to get a basic starter home (1800 sq ft) in our area (15-20 years old in need of renovations). We currently have one of the smaller houses in the area (1100 sq ft) and will sell for approx. $425,000 - $440,000 in the spring once all renovations are completed.
We are thinking about purchasing our main home with another relative (family) who would own 1/3 - 1/4 share in the house allowing us to get a newer larger home with a decent sized lot (5,000 sq ft) which would cost us around $590,000 - $620,000. By partnering with another family in our main house purchase, it would allow us to have some left over equity to put towards investments. If we purchased a $510,000 home on our own, we would probably need to borrow a small amount to put towards the down payment (to get 25%).
Assumptions:
1. Partner with 2nd person to purchase main home
2. $600,000 purchase price
3. 20% downpayment
4. Portion of Mortgage $2,200/month (2/3rds)
Questions:
1. By partnering with someone else on my main house purchase, would I then have issues getting a 2nd investment mortgage. (I am assuming they would not be able to use my main house to secure any additional mortgages or LOC`s???)
2. When we sold (est. 5 years), would the house still be considered a personal residence for tax purposes? (ie: Wont have to pay capital gains)
3. Any advice and/or warnings in purchasing your main home with a 2[sup]nd[/sup] person in regards to financial or future investing issues?
Any advice or comments are welcome and appreciated.
Regards,
Robert
1st time poster. I`ve read the Real Estate Investing in Canada and am nearly finished the 97 tips book. Both are great books and I feel that I have learned a lot and want to get started in investing. I am currently on my 3rd buy-renovate-and-sell home in the Vancouver area, and now feel ready to get into the rental aspect of real estate. (Definitely looking to purchase a rental outside the Vancouver area due to our extremely high prices here)
The Vancouver area has been great for creating equity in a short period allowing me to pay off some large school loans while still leaving me with 25% equity, however, my family and I would like to purchase a larger home. To do this, we will need to spend approx. $510,000 to get a basic starter home (1800 sq ft) in our area (15-20 years old in need of renovations). We currently have one of the smaller houses in the area (1100 sq ft) and will sell for approx. $425,000 - $440,000 in the spring once all renovations are completed.
We are thinking about purchasing our main home with another relative (family) who would own 1/3 - 1/4 share in the house allowing us to get a newer larger home with a decent sized lot (5,000 sq ft) which would cost us around $590,000 - $620,000. By partnering with another family in our main house purchase, it would allow us to have some left over equity to put towards investments. If we purchased a $510,000 home on our own, we would probably need to borrow a small amount to put towards the down payment (to get 25%).
Assumptions:
1. Partner with 2nd person to purchase main home
2. $600,000 purchase price
3. 20% downpayment
4. Portion of Mortgage $2,200/month (2/3rds)
Questions:
1. By partnering with someone else on my main house purchase, would I then have issues getting a 2nd investment mortgage. (I am assuming they would not be able to use my main house to secure any additional mortgages or LOC`s???)
2. When we sold (est. 5 years), would the house still be considered a personal residence for tax purposes? (ie: Wont have to pay capital gains)
3. Any advice and/or warnings in purchasing your main home with a 2[sup]nd[/sup] person in regards to financial or future investing issues?
Any advice or comments are welcome and appreciated.
Regards,
Robert
