Realestate, Mortgage and Home owners discussion

[Duncan]

20% of 400k would be 80k. split 4 ways is still 20k. I'd be interested if i wasn't looking to buy a place this summer. d'oh

[nature boy]

[Wetundies]

Peri had a unit that was closer to Balsam on w.4th. He sold it for close to 430k i believe. They bought it for around 200k.

Growth wise, i still say detached has higher potential.

[nature boy]

he moved? where did he go?

[joel]

well i was thinking more of a short term investment, since the building finishes around 2014, I would probably prefer to sell it in that time frame with at least about a 5% (net) a year return. (which i am hoping is still pretty modest)

i am curious what was the reasoning behind never buying to sell as a first time home buyer?

[Duncan]

i think it was because of a few reasons. Your first home should be just that, a home. and secondly, it may be a waste of your tax credits to buy an investment home if you're gonna pan it off for short term gain because if you used up your tax credits on the first home, you're gonna have to buy another home anyways and you're gonna get taxed on that home, so your tax credits are m00t...

but if i were going to go halfsies on an investment home, i wouldn't want to use my first time home buyers tax creds on the halfsies because my tax credit would be split however many ways also.

i'd only go in on this investment if i already owned a home myself

[se7entse7en]

Also, I image that if you get a place that you don't want and can't sell, you're kinda sol.

[Duncan]

haha, that's true too...

i think there's nothing wrong with buying for a home AND an investment. I think that's actually the smart thing to do. Love what you're buying, and know what you're buying so you can cash in your investment if you need/want...

[nature boy]

[se7entse7en]

*sigh* I know, I know. When I run, the blood leaves my brain and it can take a few hours for it to return.

[geForce]

[nature boy]

yeah, that's basically what i mean too. if you can't afford to buy a home, you can't afford to buy real estate for investment purposes.

[jeSteR]

But if you go in with the understanding that you're not going to flip it unless there's a 15% return, you're still ok to be covered for your mortgage / loan with a renter. Building equity, that's smart real estate... Flipping works in a rising market. Renting is a long term investment that will always net a profit... in this case... 100% as my renter will cover the interest and some principle every month. It only goes south on me if interest rates jump over 10% within the next 18 years.... either way, I'd have plenty of time to react. I'm going for sure on Friday now if anyone cares to join me. Then I'm heading to men's group straight afterwards

[geForce]

I saw a new development just broke ground on Boundary and Vanness. It's called Wall Centre Central Park. It's a bit far away from the Sky train station, but still a pretty good rental area.

Whatever area you're buying though, if you're planning on renting it out, make sure the strata laws allow for it. Sometimes new buildings have none to begin with, sometimes they limit it to a certain percentage, sometimes it's not allowed at all.

If it's limited percentage, then you have to put your name in a lottery draw at the first council meeting.

[Wetundies]