buying a investment property in canada.

5 Replies

Hey there bigger pockets, I am looking to expand my portfolio sooner rather then later.

I currently right now have a surplus of $18 000, yearly. I am looking to in buying an investment property.

I currently have owned my home for just about 1 year, which we have about 13% equity in.

Now the problem I have is generating the capital for purchasing a second property. I live in Ontario, Canada and you need 20% down on your second property. So now I am not sure about how to get into my second property. So I am wondering if I there is any way to not have 20% down on the second property right now about 60% of that extra income is coming from my day job and the other 40% would be coming from my girlfriend, it is not claimable income. So as I understand it currently you cannot have more the 32% of your paycheck leveraged against. Right now my houses mortgage is 21% of my pay which leaves me 11% to get a second mortgage. Which means 405$ a month towards the second mortgage even though I could realistically could afford a lot more. So I am wondering if anyone has any suggestions on what to do.

Am I just compelled to saving up my income for two years until I have enough capitol or is there any other way?

If you're willing to travel a couple hours, you can buy property around buffalo, NY for 5-20k.

Rent appear to be 600-1200/mo for single family homes and taxes appear pretty low but I could be wrong.

Originally posted by @Bradley Hyndman:

Hey there bigger pockets, I am looking to expand my portfolio sooner rather then later.

I currently right now have a surplus of $18 000, yearly. I am looking to in buying an investment property.

I currently have owned my home for just about 1 year, which we have about 13% equity in.

Now the problem I have is generating the capital for purchasing a second property. I live in Ontario, Canada and you need 20% down on your second property. So now I am not sure about how to get into my second property. So I am wondering if I there is any way to not have 20% down on the second property right now about 60% of that extra income is coming from my day job and the other 40% would be coming from my girlfriend, it is not claimable income. So as I understand it currently you cannot have more the 32% of your paycheck leveraged against. Right now my houses mortgage is 21% of my pay which leaves me 11% to get a second mortgage. Which means 405$ a month towards the second mortgage even though I could realistically could afford a lot more. So I am wondering if anyone has any suggestions on what to do.

Am I just compelled to saving up my income for two years until I have enough capitol or is there any other way?

As far as I know , you really need to have the 20%.

You can get 20% through an LOC or private financing paying around 12-15% for one year, after one year you have to pay back the full amount.

Buffallo is selling for 5K-20K? crime riden/ boarded up houses?

you could possibly get the seller to help you also if they are willing. But as far as I know 20% is a must for second mortgage. 

okay well i wansnt sure if there was alternative options. On the plus side i should have saved enough in a year or so. thanks for all you help BP. 

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