Brantford, Ontario · Member since 2017 · 5 posts · 0 votes
Hello! Robert here, I am a fresh faced young type person looking to start buying property. I would like to start off house hacking and eventually work my way up to generating enough passive income to just relax a bit and enjoy my time with my son. I am very unfamiliar with real estate, I know houses have walls and also windows, sometimes a furnace but sometimes other heating stuff. I am working my way through the podcasts and am looking forward to getting to know people and doing a lot of learning on the forums! If you want to know more about me just give me a shout and I will be more than happy to shout back. But
Brantford, Ontario · Member since 2017 · 5 posts · 0 votes
9y
And before someone points out my lack of a profile picture I seem to be having trouble getting the picture to stick, it shall be figured out by myself as soon as possible I assure you.
Rental Property Investor · Kitchener, Ontario · Member since 2016 · 49 posts · 5 votes
9y
Hi there @Robert Benoit any questions do you have about investing just let me know and |I'll be glad to anwswer them for you and help you through the process, as well as many others on this biggerpockets.com to guide and learn from.
Investor · Toronto, Ontario · Member since 2016 · 52 posts · 8 votes
9y
Hello Robert,
Don't forget the roof on the house :P
Also start getting familiarize with the Residential Tenancies Act.
Is your current property ready to be house hacked? Or are you looking to purchase something else that is suitable for house hack? I know the Brantford market is getting hot as well.
Welcome to Bigger Pockets. Make sure to listen to the podcasts. They are very informative, and contain ample information. https://www.biggerpockets.com/blogs/
Residential Real Estate Broker · Kitchener, Ontario · Member since 2014 · 687 posts · 370 votes
9y
Hi @robert benoit Welcome to bigger pockets. One of the best ways to start your first investment is with cashback mortgage if you don't have enough down payment.
I can explain that for you. And we can help you in Brantford if you like. I have a team that covers that area. cheers Roy
Hi @robert benoit Welcome to bigger pockets. One of the best ways to start your first investment is with cashback mortgage if you don't have enough down payment.
I can explain that for you. And we can help you in Brantford if you like. I have a team that covers that area. cheers Roy
Cash-back mortgages are a marketing gimmick and, while they can be useful (if you use the cash-back wisely), they can also carry additional strings ... and could be just enough rope to get yourself in trouble.
We have also found lenders to be less inclined to offer cash-back on residential rentals than they were a few years ago.
Residential Real Estate Broker · Kitchener, Ontario · Member since 2014 · 687 posts · 370 votes
9y
Yes - have to look at the details and make sure that it can work for you. I use Scotia bank for that.
They seem to be really good. And of course nothing is free - you pay for the cash back that they give you up front by having a higher interest rate - yet this is one of the creative ways to finance.
Yes - have to look at the details and make sure that it can work for you. I use Scotia bank for that.
They seem to be really good. And of course nothing is free - you pay for the cash back that they give you up front by having a higher interest rate - yet this is one of the creative ways to finance.
and possible mortgage insurance added onto your initial principal.
This is the rope! The higher interest rate will make it more difficult for the property to throw of the required level of cash-flow. Of course, you will have underwritten the deal at sufficiently conservative financing rate - like the BoC posted 5-yr, fixed-rate reference - that the business easily throws off cash at the actual financing rate.
If you are disciplined enough to apply the "cash-back" directly to the mortgage principal as a pre-payment (some lenders will {strongly} encourage this approach) it is a good thing ... if you use the cash-back on a rental property financing to pay-down the principal on your primary residence (where mortgage interest cannot be deducted as a business expense) you may warrant extra kudos.
If you are certain you can re-invest the cash-back and earn a higher {net} return than paying down your mortgage financing {particularly that on your personal residence which is paid with after tax income}, the cash-back can be a good thing.
If you are going to use the cash-back to pay-off consumer debt, it may be a good thing.
If you are going to use the cash-back to make the property rent-ready, it is probably the wrong approach.
If you are going to use the cash-back to trade-in your ride, it is definitely not a good thing.