Newbie in need of advice

[gtagal88]

Hi everyone,

I am new to this forum and am very interested in real estate investing. Problem is, it is really confusing to me and I have NO CLUE where to start. Actually, I tried to start when I was 19, but I think I now have a mess on my hands. I would really appreciate any advice on my dilemma...

Three years ago (when I was 19), I thought it would be really smart for me to buy a preconstruction condo for $180000. I figured that I would buy it, and that when it was ready (Spring 2007) I would sell it and pay off my tuition (so naiive).

Well fast forward (more than) a couple years. I had to get my aunt to get the mortgage for me because I didnt qualify, and so had to give a down payment of $27000, and settle for a first mortgage of about $134000 at 7% and a second mortgage of about $18500 at 14% - interest only (I dont have the actual figures in front of me). I was also unprepared for the closing costs, which totalled about $5000.
I tried to lease it out last year so that I would have the benefits of appreciation and someone else paying down the mortgage, but when I advertised I didnt get much response.

So...I am now living here paying $1700 (including taxes, utilities, maintenance) with my husband and twin boys (my life didnt go exactly as planned!), and am wondering if I should just sell and accept the price its now going for ($210000), or hold onto it?

They are going to be building a recreation center here this summer...do you think this would bring up the price? My builiding will also be in the same community as the "Marilyn Monroe" buildings...do you think these buildings would bring the value of my property up or down?

Any advice you can give will be very much appreciated...

Thank you,

gtagal

 

[invst4profit]

That is a difficult question to answer as you do not give a reason for wanting to sell.
If your reason is because the financial burden is to much to handle then, considering
your age and other life issues I do not see any good reason to speculate further.
On the otherhand if you like to live there and it is affordable you have a good start
at an early age in the housing market.

If you sell have you thought of where you would move and what that would cost.

 

[gtagal88]

Thank you so much for your response.

Well, the main reason I want to sell is because we need a bigger place now (our condo is only 700sq feet). The problem is that houses in the Mississauga area are on average $300000+...which makes it unaffordable for us right now (the mortgage payments would be too much).

My question more specifically is whether you think that the value of my home will increase if I wait for the rec center and other landmark buildings to be built. I guess I just want the best "bang for my buck" so that we can eventually afford to buy a bigger house by using the equity from this one for a down payment.

If there is still space available, I am going to enroll in the REIN workshop next weekend so that I can learn about the various ways to use real estate to build wealth.

Thanks,

gtagal88