Buying Real Estate In Canada
Hello all, I am thrilled to join the conversation here on Bigger Pockets. I wanted to reach out and get your advice on my situation.
I discovered Bigger Pockets four days ago and I'm 19 podcasts deep. Im all about putting into practice what I am learning but could I be too eager?
My names is Josiah and I'm newly married as of two months ago. I am an electrician by day and a business student by night. I am in the midst of a career switch (to finance) so at the moment I only make roughly $40,000 a year. My wife and I are considering doing a HELOC on our condo getting us about $100,000 for a 20% down payment. We are based in Abbotsford, Canada (just outside of Vancouver). The market here is a lot different then the majority of the guests on bigger pockets. The 1% rule does not apply as single family homes here range from 600k-1.2m and rent for $2,000 - 3,000. My wife and I have been analyzing condos to invest in. Hoping to purchase a one bedroom condo under $300,000 and rent for around $1200+. Cash flow is possible here if your lucky but at most you might earn $50-$100. We are both just starting our careers and only pull in $90,000 net and are both 23 years old. Our real estate market is not ideal but still eager to learn and grow a portfolio.
A couple questions for you:
Is it wise to take on a rental property when my career is not determined and our finances are in no way stable?
Is the buy and hold strategy still effective here in Canada?
In my mind purchasing a property that breaks even (with management costs included) is worth the effort for the purpose of building equity and appreciation. Would you agree?
Should my wife and I just save our money and purchase a single family home in two years time?
Any advice on my situation would be much appreciated. Im eager and ready to go but the market here can be discouraging.
Thanks for the read, and best of luck on your investments folks.
Cheers.
Josiah