New Immigrants & Renters:
Smart renters or new immigrants don’t throw their money into renting for a long time. I have witnessed many renters who buy within a year or so of renting. Then there are some new immigrants who don’t rent at all. They buy with 35% down payment under “New to Canada” home buyer’s plan.
Savings for Marriage:
I know some of my clients’ children who opted for smaller, less extravagant weddings, and used their savings to buy a home instead. I am not suggesting that you should do the same, of course marriage is once-in-a-lifetime thing. For some, it matters how much you pay for the diamond ring, the venue, beautiful flower arrangements, high definition videography, designer dresses, gifts your guests will take home, the brand of scotch you will serve, and making sure your guest list includes all those who have invited you to their events. For some, $40k, $60k or $80k is nothing when it comes to getting married, and if you think these things matter, go for it.
Imagine people who saved $25k-$50k by choosing to have a smaller wedding only to buy their first home instead of renting.
To keep renting and saving to pay off a student loan or an extravagant marriage can take a long time and real estate moves further away. Again, it’s your choice and everyone is right when it comes to making their life’s important decisions.
Buying your first home:
A few years ago, I met a young professional who wanted to rent even when he qualified to buy an entry level condo. Though he was a financial consultant, he made little sense when it came to discussing financial matters. This guy wanted to wait to get a bigger freehold home and chose to rent until then. I tried to suggest not to wait to buy real estate, but to buy real estate and wait instead. He ended up renting.
Smart investors make money work for them rather than working for money. They buy a small condo first, and trade it in for a bigger home in a few years. The current property appreciates in value, equity builds up, and less money is required to buy a bigger home than if one decides to wait to save more for one’s dream home.
Some of my clients fast tracked their future savings by investing in not one, but two condos at the same time. This strategy worked out very well for them. I am confident that these people will be very happy retirees, and can even downsize with peace of mind.
My 2 Cents:
The biggest roadblock for investors when it comes to investing in real estate is their fear about handling tenants and managing rental properties. The most frequently asked question we hear is: “Will I be able to rent my property?” Well, of course yes, we have such a short supply of rental properties. As a team, we help you buy good investment properties, find you AAA tenants, and on top of that we also provide a la carte property management services to all our clients who buy with us. So if you’re thinking of investing for your children or yourself, call us for free consultation.
Disclaimer: I am not a financial consultant even though I have many financial advisors and accountants as my clients. Any financial investment must be done after consulting your financial planner or accountant etc.
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