First time investment for an eager but confused Millenial

[djruss335]

Hey everyone,

I am new to the board, I hope you will forgive me if these posts are frowned upon.

So to break it down, I am 26, single, no kids, and looking to buy in the next 12 months, with a minimum 50k for a downpayment, will likely be able to afford a maximum of 400k.

Some scenarios I have been considering:

1) Buy a 2 bd Condo in DT, Etobicoke or Mississauga. Rent the other room out to bring my costs down and pay it down as much as possible so it can be cash flow positive when I move on.

2) Buy a house and live in the basement while renting the entire upper level, or rent the entire house if it makes for a painful commute.

3) Invest overseas in one of the depressed Eurozone economies or the US and have a vacation rental(Financing can be tricky along with various tax and legal implications on top of management)

Regarding my living situation, I currently freeload off my parents, I have the option of moving to a upper level of a house in Brampton with 2 friends for $500/month

I work alot in Downtown Toronto but also work anywhere from Markham to Milton.

I am honestly at a loss with the options available, and with all the fear mongering I am finding it more and more difficult to make a decision on the best direction to take.

Any advice, words of wisdom, or book recommendations are appreciated.

 

[Thomas Beyer]

No rush as 50,000 is not a lot and you need to first of all assess how much you can borrow with less than 20% down.

Consider a presale condo to assign to create another 50-100,000 within 2 years, or buy a house as condos do not cash flow well due to high condo fees and little land associated with it. Land rises in value not the structure on it ( it deteriorates ). As such if you can get a mortgage buy a small house in a suitable location and rent the upstairs.

Some related articles especially first one on "how to get started" http://myreinspace.com/threads/educational-rein-posts-by-thomas-beyer.10663/

 

[Willyboy]

My advice to you is go buy a suited house in Hamilton, Kitchener area, Barrie or Guelph and expect to wait for 15 to 20 years for some nice price appreciation and this shouldn't be a problem for you because you're still young and can wait. If you're thinking about the current bubble that's happening right now, unfortunately you're late to the game and even if they don't take substantial measures to stop fix it it will start to slow next year after the spring season so if a quick buck is your goal forget about it.

Do what I'm telling you to do and you won't regret it trust me but you have also to bear in mind that as you wait a correction might happen so if you don't have enough back up set aside don't do it until you save some and no rush because you're young anyway.

 

[Alvaro Sanchez]

You are in a great position so I would advice to JV with someone to get you a higher property value enough for a duplex/triplex. You must have some friends or relatives open to invest with you. There are plenty of opportunities out there as well as many who will tell you that there are "none" or that you are nuts.

You must invest in your RE education to be able to see opportunities as there are many ways to invest in RE other than traditional ways.

Hey everyone,

I am new to the board, I hope you will forgive me if these posts are frowned upon.

So to break it down, I am 26, single, no kids, and looking to buy in the next 12 months, with a minimum 50k for a downpayment, will likely be able to afford a maximum of 400k.

Some scenarios I have been considering:

1) Buy a 2 bd Condo in DT, Etobicoke or Mississauga. Rent the other room out to bring my costs down and pay it down as much as possible so it can be cash flow positive when I move on.

2) Buy a house and live in the basement while renting the entire upper level, or rent the entire house if it makes for a painful commute.

3) Invest overseas in one of the depressed Eurozone economies or the US and have a vacation rental(Financing can be tricky along with various tax and legal implications on top of management)

Regarding my living situation, I currently freeload off my parents, I have the option of moving to a upper level of a house in Brampton with 2 friends for $500/month

I work alot in Downtown Toronto but also work anywhere from Markham to Milton.

I am honestly at a loss with the options available, and with all the fear mongering I am finding it more and more difficult to make a decision on the best direction to take.

Any advice, words of wisdom, or book recommendations are appreciated.

 

[Cory Sperle]

Option 2 and the sooner the better

 

[adriano]

I think you buy and wait don't wait to buy. If you can buy a place and live in it and rent the upstairs then if you do your due diligence then you may be able to live for free while your tenants pay your mortgage.

 

[Julio7671]

You are in a great position so I would advice to JV with someone to get you a higher property value enough for a duplex/triplex. You must have some friends or relatives open to invest with you. There are plenty of opportunities out there as well as many who will tell you that there are "none" or that you are nuts.

You must invest in your RE education to be able to see opportunities as there are many ways to invest in RE other than traditional ways.

 

[Julio7671]

Hey everyone,

I am new to the board, I hope you will forgive me if these posts are frowned upon.

So to break it down, I am 26, single, no kids, and looking to buy in the next 12 months, with a minimum 50k for a downpayment, will likely be able to afford a maximum of 400k.

Some scenarios I have been considering:

1) Buy a 2 bd Condo in DT, Etobicoke or Mississauga. Rent the other room out to bring my costs down and pay it down as much as possible so it can be cash flow positive when I move on.

2) Buy a house and live in the basement while renting the entire upper level, or rent the entire house if it makes for a painful commute.

3) Invest overseas in one of the depressed Eurozone economies or the US and have a vacation rental(Financing can be tricky along with various tax and legal implications on top of management)

Regarding my living situation, I currently freeload off my parents, I have the option of moving to a upper level of a house in Brampton with 2 friends for $500/month

I work alot in Downtown Toronto but also work anywhere from Markham to Milton.

I am honestly at a loss with the options available, and with all the fear mongering I am finding it more and more difficult to make a decision on the best direction to take.

Any advice, words of wisdom, or book recommendations are appreciated.

 

[Julio7671]

Hi, where are you located?

 

[Colin Forrest]

I don't think you want your first investment to be anywhere other than where you live. Option 1 or 2 seem best and perhaps ask your parents for a loan which could further support your down payment. If you think there is any chance you may move in a few years or less then don't bother. You don't need the hassle at your age. Also, now that you are a REIN member, there are some great alternatives for your $50,000 investment which could provide you a very good yield without the hassle of being a landlord...... not that being a landlord is bad. Going this way, there is a good chance you could double your money in 5-6 years stress free and be in a better position in your early 30's. By then you can really learn the ropes.

 

[DEWDROPS]

Going this way, there is a good chance you could double your money in 5-6 years stress free and be in a better position in your early 30's. By then you can really learn the ropes.

Doubling money in 5-6 yrs stress free? Would love to hear more...

 

[Willyboy]

Doubling money in 5-6 yrs stress free? Would love to hear more...

He's just kidding

 

[Cory Sperle]

It's very doable to double in 5 years, depending on what your definition of 'stress' is.