Jumping into the Market?

 

 

I was asked this question the other day via Twitter = thanks to Mike!

“what’s some good advice for a 25 yr old looking for his starter home!”

 

 

 

Here we go…

What to Buy: Duplex with rentable basement suite

Cost: $200,000 – $300,000

Plan to stay: 5yrs

Why: no condo fees, tenant pays your mortgage. It’s a flexible investment – because they are easy to buy and easy to sell. Tenants of duplexes tend to rent for longer periods – hence less turnover – less headache – or landlord ache 🙂

Build up enough capital in your home and when you are ready to buy your next place- simply rent out the top floor – use the income from the rental towards qualifying for your next place. This way you are building your investment portfolio along the way!

*Any investment is most beneficial if kept  for the long term. By starting off with an easy rentable, affordable property you stand the best chance of hanging on to it for the long haul.

Here’s the numbers for financing:

Purchase price: $250,000

5% down – mtg at 237,500

25 yr term, 3% rate = monthly mtg pmt = $889.15/month*

taxes = $150/month

Heat/Power = $150/month

Total = $1199.15

Rent: $1200**

* this does not take into account the CMHC fees – which could up your monthly payments by $50-$60

** this is the average rent for a decent condition and location 2bdrm unit. You may want to consider furnishing your unit – it will always garner a better rent.

Examples of such properties:

Duplexes in Edmonton

Additional “Edmonton Realtor: KENNEDY Real Estate” Articles… 

 

Jennifer Kennedy
Broker | Owner

KENNEDY Real Estate
Your Edmonton REALTOR® | Edmonton Home Stager

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