1327.52 $
*For simulation purposes only

First purchase: triplexes, quadruplexes

You’re buying a first home and like the vast majority of buyers your interest goes to a single family residence.

You’re buying a first home and like the vast majority of buyers your interest goes to a single family residence. Instead, why not buy a triplex or quadruplex?

Of course, the initial investment will be higher but in the long term, you will win. Do the exercise: The minimum down payment required for a home purchase being 5%, with an average purchase price of $250,000, you will have to pay 12 500$. After a few years, you are tempted to invest in real estate. Buying a rental property prompted a down payment of 20% unless you live there. This means that for a building of $500,000, you will have to shell out $100,000. However, if from the start you buy a triplex or a quadruplex, the down payment, if you occupy one of the apartments, is 10%.

The purchases of such property at a price of $500,000 therefore ask you an initial investment of $50,000. Of course, one of the benefits of owning such a building is that tenants help to pay the mortgage. Thereafter, you can purchase a single-family residence and the required down payment will always be 5% or $12,500 according to the example above. In comparison, starting with the purchase of a multi housing, homeowner, then a single family home, your total down payment will be $62,500 rather than $112,500. That is the right way to start investing in real estate.

Mortgage pre-approval

Mortgage broker can help you answer in pre-approving you for a mortgage.

What is its purpose?In the previous article, we discussed the value of a budget and the importance of putting money aside to raise a down payment and to demonstrate to lenders your ability to meet the financial demands of...

Lender Cash Back

There are some benefits to taking advantage of cash back programs. Some even allow for long-term savings.

Some financial institutions may offer borrowers a cash rebate equal to 5% of the amount of their loan if, in return, the borrowers agree to borrow at a higher interest rate. This pract...

Make a budget

You wish to purchase a home, but have you budgeted accordingly?

Before thinking of buying a property, it is important to make a budget to ensure that it does not become a prison, but a place where life is good. It is not necessary to make a complete revision of your income and your expenses. However, buying a ...

Minimum down payment

Portability of the mortgage insurance premium.

You want buy a property but you do not have the capital outlay required of 20% of the purchase price to obtain a conventional mortgage loan. No problem the mortgage lender will refer your file to a mortgage insurer. You will be charge with a mortg...