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...
Forgot to add,
The houses here that are going for 300-350 are going for 120-170K back home
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!
$110K Income at 20 years old? I am sorry but I do not believe that.
I sold 4 websites when I was 21 and made $238,000. Why is that hard to believe?
CS, being a rough neck pays well. 110K seems a little high for someone starting out but maybe this isn't his first season.
Age has nothing to do with income. It depends on what you do, where you do it. Any limitations we believe we have are self imposed!