Victoria is officially a buyer's market with more properties on the market then buyers. What a wonderful time to build your nest egg. Have you ever thought about buying a rental house than balked thinking it would be too difficult?
Let's make 2009 the year to build your nest egg. There is a large selection of houses out there. I personally like single family houses with a suite. I like to have houses with three bedrooms in the upper part of the house and a two bedroom in the bottom. Rents are averaging $600 a bedroom which means on a three bedroom you could be making $1700 - $1800 a month in rent and on a two bedroom, around $1200. That covers your mortgage and more especially if you have an interest only mortgage or a variable rate. Prime is 3.5% right now.
Now you may be asking yourself, "where am I going to get a down payment?" Do you have a house now? Do you have equity in it? Why not make that equity work for you? Pull it out and use it as a down payment for another house. I have done this three times thus far resulting in four houses and my partner, Sherri, has done this twice resulting in three houses for her.
My sister was my inspiration. She came back from travelling with this goal of buying one house a year for the first five years of living in Victoria. Both our families became partners to spread out the risk and it is one of the best decisions we have made. We now own four houses and are considering a fifth. My sister gets mad when she doesn't reach her goals!!!
She does all the landlording and I do all the mortgages making it all work. If you want, I would love to show you how. Our goal is financial independence in the future and we're closer and closer to our goal everyday.
Cheers
Krista
krista@lawlessbrown.com
http://www.lawlessbrown.com
PS> you should see the tax write offs involved with a rental property!!!! but that's for another blog at another time.
My mistake, PRIME is 3.5%!!!!!!
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