Need a home but also want to start real estate investing.

Feb 04, 2010

When is the right time to start real estate investing?
by: Tom Karadza

Hi Shari,

I can't believe you're already thinking this way. Super smart! Nick started investing by himself with his own cash at 21 and to see you already thinking this way is amazing.

The buy versus own debate will rage on for years. There's volumes of books written on this debating the pros and cons.

My personal preference is to own my own castle. Meaning, purchase the place you live. Others will argue that you can save money on maintenance and property taxes by renting and you invest the difference.

From experience, I personally don't know anyone disciplined enough to actually take the money they save by renting and invest it.

For that reason I'm a believer in buying your own property. This is of course my personal bias.

I think you are very smart in thinking about renting out part of a property you buy. I know many people who have roommates and that extra income really helps create extra cash flow to save up for a down payment on an investment property.

But if you don't like the roommate thing then I wouldn't discount qualifying for a duplex. Depending on your credit and where you're living in Ontario you may be able to qualify. I would strongly encourage exploring that option further.

And if you discover that you really can't qualify for a duplex then again my personal opinion is to buy your property before you begin investing.

Others may disagree with this and I really want to tell you to start investing first but I personally believe in owning the place you live.

I would really explore the idea of a duplex as much as possible though. If you could qualify that would be the perfect combination.

Hopefully this doesn't confuse you more than help you!

Tom.

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Feb 04, 2010
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Submitted by: Tom Karadza

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Hi Shari, I can't believe you're already thinking this way. Super smart! Nick started investing by himself with his own cash at 21 and to see you already thinking this way is amazing. The buy versus own debate will rage on for years. There's volumes of books written on this debating the pros and cons. My personal preference is to own my own castle. Meaning, purchase the place you live. Others will argue that you can save money on maintenance and property taxes by renting and you invest the difference. From experience, I personally don't know anyone disciplined enough to actually take the money they save by renting and invest it. For that reason I'm a believer in buying your own property. This is of course my personal bias. I think you are very smart in thinking about renting out part of a property you buy. I know many people who have roommates and that extra income really helps create extra cash flow to save up for a down payment on an investment property. But if you don't like the roommate thing then I wouldn't discount qualifying for a duplex. Depending on your credit and where you're living in Ontario you may be able to qualify. I would strongly encourage exploring that option further. And if you discover that you really can't qualify for a duplex then again my personal opinion is to buy your property before you begin investing. Others may disagree with this and I really want to tell you to start investing first but I personally believe in owning the place you live. I would really explore the idea of a duplex as much as possible though. If you could qualify that would be the perfect combination. Hopefully this doesn't confuse you more than help you! Tom.

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Need a home but also want to start real estate investing.

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Need a home but also want to start real estate investing.