Hello Everyone,
I was just hoping to get some advice and guidance on some questions about my first purchase. Currently my brother lives in waterloo close to the university, he has been paying rent for a few years now, however, since reading Don`s book and opening my eyes I realize that we have an opportunity here. I originally wanted to purchase a student property in waterloo however realized that I would need 20-35% down. So as far as I know if my brother and I were to purchase a house and he was to live in it and we rented the other rooms to other students then it would no longer be classified as a student rental it would be a principal residence and we only need to put 5% down.
1) Is the Assumption correct??
2) If he was to move out after a year would we have to go back to the bank to up-date them that no one on title is living there or could we just rent out the room and keep it as a student rental? Or is the bank going to require us to re classify it and put more of a down payment on the property.....this doesn`t seem likely to me; however I just want to make sure.
The other situation I am facing is that my brothers lease is up in September, he doesn`t want to leave his landlords high and dry last minute, which is respectable, however this leaves me a shorter window of time to find a property (3 months). Seeing as how I have never purchased a property before, is it reasonable for me to assume that I can locate and finance a property in that amount of time so my brother has a roof over his head and his landlord isn`t left high and dry? I understand that there isn`t an exact right answer to this seeing as how it really depends on the market and if there are any decent properties available, I was just hoping for some in sight on if I may be too eager and excited and jumping into the situation??
Any thoughts and input, especially from waterloo investors would be greatly appreciated. Or if any investors have the time to sit and have a coffee with me, to help guide me with my first purchase, the coffee is on me. J
Also I was wondering what type of housing insurance would be advisable in this situation and does anyone know a rough cost or a good insurance agent to contact so I can file out my property Analyzer form.
Thanks again to anyone that helps.
Matthew
I was just hoping to get some advice and guidance on some questions about my first purchase. Currently my brother lives in waterloo close to the university, he has been paying rent for a few years now, however, since reading Don`s book and opening my eyes I realize that we have an opportunity here. I originally wanted to purchase a student property in waterloo however realized that I would need 20-35% down. So as far as I know if my brother and I were to purchase a house and he was to live in it and we rented the other rooms to other students then it would no longer be classified as a student rental it would be a principal residence and we only need to put 5% down.
1) Is the Assumption correct??
2) If he was to move out after a year would we have to go back to the bank to up-date them that no one on title is living there or could we just rent out the room and keep it as a student rental? Or is the bank going to require us to re classify it and put more of a down payment on the property.....this doesn`t seem likely to me; however I just want to make sure.
The other situation I am facing is that my brothers lease is up in September, he doesn`t want to leave his landlords high and dry last minute, which is respectable, however this leaves me a shorter window of time to find a property (3 months). Seeing as how I have never purchased a property before, is it reasonable for me to assume that I can locate and finance a property in that amount of time so my brother has a roof over his head and his landlord isn`t left high and dry? I understand that there isn`t an exact right answer to this seeing as how it really depends on the market and if there are any decent properties available, I was just hoping for some in sight on if I may be too eager and excited and jumping into the situation??
Any thoughts and input, especially from waterloo investors would be greatly appreciated. Or if any investors have the time to sit and have a coffee with me, to help guide me with my first purchase, the coffee is on me. J
Also I was wondering what type of housing insurance would be advisable in this situation and does anyone know a rough cost or a good insurance agent to contact so I can file out my property Analyzer form.
Thanks again to anyone that helps.
Matthew
