I need some advice. About to close on a home. (Vancouver)

[Alfredo Young]

Hello BP'ers,

I'm looking for advice as I'm a first time home-buyer and I feel like I've made a mistake. My girlfriend and I are about to close on a townhome and I'm having trouble deciding whether I should back out or buy the property.

Details: We've negotiated up to 640k from an asking price of 628k (argh), two bedroom, 928sqft, and the place allows rentals but only for 12months +, 16 minute walk to the skytrain. At the moment we're paying $700 + bills for rent.

Our options are to try and back out, move in immediately after closing date, or rent it out for a year and move in. We're deciding on a year because we're about to start a family within that time. 

Appreciate any advice! Thanks,

[Uwe G.]

Hi @Alfredo Young, from an investment standpoint I would go into buying this home with the following in mind.  Under the assumption you are moving into an owner occupied home I think the key is to insure if you had to move out of it, you wouldn't be forced to sell and you could rent it out more for what you have to pay via loans, maintenance, hoa, insurance, and management fees.  The key is to not get "stuck" into a place that keeps you handcuffed in case better a job prospect comes along somewhere else or a life event takes you somewhere else.  Bottom line, only buy it if you could rent it out and make money on it every month.