House buying

[Bohonos]

Any younger people on here ever buy a house? I'm a 24 year old college student who has $15,00 saved up and is thinking of buying a house and then when i'm finished school just rent it out cause the town i go to school in does not have a lot of places for rent. It's just my parents are trying to talk me out of it cause i would buy a older house because it's cheaper....
THanks.....i

 

[MP5]

I don't own a house but i wish i did. You cannot go wrong buying property. You don't even need to put the money down if you go 80% on a first mortgage, and go with a 2nd for 20%. I plan on getting one in a couple years, letting the equity grow, then use it to pay of student loans.

 

[Bohonos]

a person can really never go wrong buying land.

 

[AAP]

Buy a condo. T hey rent out faster than houses. When I first moved to FTL, I bought two 2 bed, 2 bath condo units that were side by side, and demolished the wall between them to make a much larger unit. The finished unit has 2 bedrooms, with additional sitting areas, 2 full bath, one half bath for guests, and I turned the other bathroom into a full service bar. (because it had the plumbing already set up for the bar sink and disposal, etc..) I turned the 4th bedroom into an office and just combined the two kitchens into one larger unit. The living room is double the size now and I make more money renting this one unit out than I would have by renting the two seperate ones out. Since I have no mortgage on this one, I bought a house and my rent from here pays my house mortgage, association fees and insurance (for both units) I still end up with $200 each month left over in my pocket.

Go with a condo because financing is easier in some cases.

 

[MP5]

That is what i was thinking of getting, a condo, and if possible one with a garage to store stuff. I don't need a whole house, cause i don't have kids, and don't want any.

 

[Taps]

You're in Canada right? If you're looking for a mortgage, check out http://www.pcfinancial.ca/

The variable rate is like 3%....try asking for that at one of the big 5 banks and they'd laugh you out the door. They also have a line of credit (5.75%) available as well -- always handy for repairs, etc.

To get a mortage for rental property you need 15% down, not 5%, which you'd pay if the house was to be your residense. Also, try to live in it for at least 6 months after the purchase (or at least send all your mail there) -- you'll pay less tax if you're living in the house as opposed to renting it or leaving it unoccupied.

My brother-in-law bought a house when he was 20. It was a peice of shit, but he worked on it for 5 years and sold it for a $40,000 profit. So yeah, ou can make a nice chunk of change off a house, but keep in mind that it'll take a few years before you recoup the inital investmet. A safe bet is to get a good house that needs a little work -- spruce it up, live in for a bit (or rent it), and then sell it 5-10 years down the road.

I'm looking at buying one in the next year myself...

 

[AAP]

With a condo, you never have to do yard work. Just make sure the construction is solid with cement at least 8 inches thick between the units in addition to the insulation and firewall. The ones I bought are literally a cement box. You could murder someone in there and no one would hear it.

Also, pick the units furthest away from the elevator. Otherwise you may hear elevator sounds and repair work being done on it.

 

[7figureman]

A negative with condos is that you cammot pick who your neighbors are. Case in point being someone like this assplorer guy moving next door.

 

[paradox]

A negative with condos is that you cammot pick who your neighbors are. Case in point being someone like this assplorer guy moving next door.

lol

 

[Bohonos]

Thanks guys......................

 

[Rex]

I don't know about Canada, but in the states you can write off a percentage of the interest on a mortgage. Can't do that with renting.

I plan on buying a house after I get out of the military. "Rent" out a room or two to some friends, and have them pay me the rent in cash. I pay for the mortgage. Use the money I would've put into the mortgage for me alone into another investment. The unused rooms are occupied. I fix the place up. Sell it down the line.

 

[Pamela]

Any younger people on here ever buy a house? I'm a 24 year old college student who has $15,00 saved up and is thinking of buying a house and then when i'm finished school just rent it out cause the town i go to school in does not have a lot of places for rent. It's just my parents are trying to talk me out of it cause i would buy a older house because it's cheaper....
THanks.....i

You have to be careful in buying an older home!
Make sure if you do you have a home inspector,
plumbing, wiring etc. to check it out for you..

If I were you I would keep saving and you will
be able to buy something not so old. And just like
AAP said buy a condo.. or duplex and rent out the
other side..

 

[circusgirl]

I don't know about Canada, but in the states you can write off a percentage of the interest on a mortgage. Can't do that with renting.

I plan on buying a house after I get out of the military. "Rent" out a room or two to some friends, and have them pay me the rent in cash. I pay for the mortgage. Use the money I would've put into the mortgage for me alone into another investment. The unused rooms are occupied. I fix the place up. Sell it down the line.

I would just say - be wary of friends you don't know VERY well. You'd be amazed how many "friends" are assholes over money and paying rent. I know folks who've been burnt this way by taking a rental contract and subletting the bedrooms to friends, who then continually screwed them over with late rent etc.