Im scared

7 Replies

I have not got into investing yet although I am serious, I've read many books , listen to audio tapes every day in the car, watch those corny "flip that house" shows.

I am 20 years old just starting to build credit, By next spring at this time I will have made 110K Gross, hoping to save a nice big chunk for a downpayment..

My dilemma is, I live in Edmonton Alberta , houses are at insane rate because of the oil boom , houses are going for 300k+ , As a first time home buyer I just think this is just to big of a step... And as I plan to move in about 5 years back to Ontario.

Should I buy land/property back home in Ontario and rent it out, but then I'd still have to pay rent out here to stay and work? Should I just bank the money? Or buy a condo out here for 250K and sell in 5 years?

I am just out here to work and make money to start investing, I really think the housing market is going to slow down here in the next couple years...

Any suggestions?

as a fellow newbie....I too am very scared
2 things to think about:

1. You shouldn't over-extending yourself....I think you should invest/ purchase any properties under the worst case senarios....are u able to hold onto a property while paying another rent/ mortage? If you can't afford to hold a 300K+ property and rent----then why invest in it? B/c you don't want to get in over your head. That equals foreclosure potential. Have a plan to hold the property and a exit strategy. That's my opinion.....and granted i'm just starting out.

2. Additionally I'm of the firm belief that u should invest in an area that u know....In my case i lived /grew up in Houston and LY i lived in Dallas for a year and just moved back to Houston....i decided to wait to buy my first property until i got back Houston a place that I know---nieghborhoods and property values.

Andrew415, you live in one of the HOTTEST real estate markets in the continent!!! Do you know how many people would die to be in a similar market. And you plan to be there for 5 years!!! The economy there is amazing, the unemployment rate doesn't exist, there is no sign of things slowing, you are making good money...

I would buy there, NOW! Look for a good deal, something you know you can handle, but I think the Edmonton real estate market still has a long way (up) to go. (I have family there)

At 20, I am assuming you are single, so your financial responsibilities are probably not too demanding.

You will be leveraging a $300k investment, even a modest appreciation there of 10% is 30k a year. FYI, in 2006 Edmonton saw a whopping 53% appreciation, the month of Jan/07 was 4.5%, Feb 5.1% and March 6%. 2007 is on track to be pretty darn exciting!

I was just speaking with a Realtor in Edmonton and you could likely get in with 5% down (depending on your profile, credit etc) You can PM me and I can give you his contact details.

If you go back to Ontario in 5 years you will probably be able to pay CASH for your house there, from the gains of buying now in Edmonton!

Don't let yourself miss out on Edmonton!