- Joined
- Dec 4, 2010
- Messages
- 3
Let me introduce myself. I`m a 25 year old recent university grad with a modest gross income of 52k a year. I expect to have between 18 and 20k saved up by April for a down payment. This is where I differ from everyone here. This is my first property and not an investment property... yet. Due to my living in the greater Vancouver area, housing is very expensive. Considering that, I`m limited to looking for a condo in Surrey or Langley. I don`t intend to live in this condo for longer than 5 years, and the sooner I could trade-up my living arrangements the better. To speed up this process I will get a two bedroom and rent the second room out. Ideally I see my next step in the property ladder as a modestly priced home with a rentable basement suite.
What I want to ask the experts is how they would approach this scenario to best position themselves for an investment property down the line. Some of the ideas I`m floating in my head :
1)Buy a cheaper unit, small upgrades, live in it, rent the room, have high payments and build equity until it can be refinanced to cashflow upon buying a new place to live in.
2) Do all the above but try to sell it for a modest profit instead of holding it. (This assumes that the condo would be too difficult to cashflow and/or I wouldn`t be able to get a mortgage on my new home while holding the mortgage of the first place)
3)A strategy of selling and buying sequential trading up in value of the home I own and live in. (This might be a more realistic strategy due to the extremely high house prices in my area) With the money I`m not investing in the housing market, I could put elsewhere (LP?).
Any comments or advice is greatly appreciated.
What I want to ask the experts is how they would approach this scenario to best position themselves for an investment property down the line. Some of the ideas I`m floating in my head :
1)Buy a cheaper unit, small upgrades, live in it, rent the room, have high payments and build equity until it can be refinanced to cashflow upon buying a new place to live in.
2) Do all the above but try to sell it for a modest profit instead of holding it. (This assumes that the condo would be too difficult to cashflow and/or I wouldn`t be able to get a mortgage on my new home while holding the mortgage of the first place)
3)A strategy of selling and buying sequential trading up in value of the home I own and live in. (This might be a more realistic strategy due to the extremely high house prices in my area) With the money I`m not investing in the housing market, I could put elsewhere (LP?).
Any comments or advice is greatly appreciated.