How much of a down payment should I use?

by Francis
(Thunder Bay, Ontario)

I am currently in the process of buying a third property for $150,000 with a 20 percent down payment.

With that much of a down payment I will be liquidating pretty much all of my cash on hand.

Should I look for a different financing situation where I can get away with a lesser down payment?

Any advice and knowledge would be greatly appreciated. Thanks a lot!

Comments for How much of a down payment should I use?

Click here to add your own comments

May 29, 2015
 RE: How Much of a Down Payment Should I Use?
by: Tom

Thanks so much for the question.

We would definitely look for a way to get access to some cash for emergencies. We've definitely stretched ourselves in the past but it's not advisable. Have a few months worth of carrying costs and some money for unexpected repairs or maintenance. If that means finding another source of down payment, or getting access to some equity in another property via a credit line for this or something else we would do it. You never want to stretch to the max like that because if anything goes wrong you have no options and you'll panic.

Our two cents of course!

Tom

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Submit A Question.

                  

  Some Cool Free Stuff...

  Step 1:

Grab a free digital copy of our real estate investing book, Income  For Life For Canadians, right here. This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

You'll also receive our weekly [Your Life. Your Terms.] email newsletter with the latest investing updates and videos.

  Step 2:

Free Weekly Investing Videos & Articles: Get the latest updates and join the over 10,000 other Canadians enjoying the weekly [Your Life. Your Terms.] email newsletter. The email is sent out each Thursday. And as a little bonus we'll give a FREE digital copy of the book, Income For Life For Canadians, too!

Your Life. Your Terms.


  Step 3:

Free LIVE Investing Class: Do you live in the Greater Toronto or Golden Horseshoe Area? Come out to our next introductory "Investing in Nice Homes in Nice Areas" Real Estate Class.

Get all the details by clicking here.

It's 90-minutes and you'll learn a ton - promise!Thousands of investors have now joined us for this class and the feedback has always been amazing.

Click here to get book

This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

  Click here to subscribe