Should I get an investment property even though I don't live in my own property yet?


(Toronto)

Hi Tom & Nick!

First of all, want to send a big thanks for all the information you've shared about real estate investing! It has pushed me to pursue this venture and learn more creative ways to approach it.

Having said that, I'm a little lost as to how to get started. I'm currently renting in downtown Toronto and prefer to stay within the city, close to my work. I've managed to save some money for a down payment and I'm looking to purchase my first property.

I want to follow your strategy and grow this venture into a side-income. But I think the first thing I need to figure out is, should I cover my bases and buy a property I can live in (maybe rent out a basement/second unit which maybe farther from downtown) or do you advise I continue renting (to stay in the city) and invest in a more affordable property somewhere else? Do you know of any tax advantages for continuing to rent and having an investment property at the same time?

Thanks and look forward to your response!

Comments for Should I get an investment property even though I don't live in my own property yet?

Click here to add your own comments

Sep 26, 2013
RE: Should I get an investment property...
by: Tom Karadza

Thanks for the feedback and the question!

We get this questions often and to us, it's a personal choice. We know investors who rent and own investment properties and others who buy their home first, and then begin investing.

If it was me I would want a family home (even if I was single) so I'd likely look for a property where I could rent out the basement to help me carry the costs. When I saved up enough cash after that I'd then start investing.

The basement apartment gives you experience and generates cash for you at the same time.

As for the tax advantages we'd defer to an accountant. In general, from our understanding, the tax advantages to owning investment properties are the same whether you rent your home or buy it. Remember, any appreciation on your own home in Canada is a tax free gain when you sell, so if you expect continued appreciation that could be a good reason to buy.

You ask a great question and there are a lot of things to consider, I hope this helps a tiny bit.


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.


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.