Just a hypothetical question - if you had CAD 200K cash , would you use it wholly towards buying your primary home or buy 2 houses , the other one as an investment or a rental property ?

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Fido.

Buy one house. Otherwise, it would be akin to keeping one foot in two boats. That's 'risk multiplied by 2'. Nah....

I would buy two houses. If you can get a rental in your primary home that will help to pay down the mortgage for the primary home. As regards the rental, you should be able to pay the mortgage from the rental income

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SS
Reiki Grand Master

Simple math...if you are willing and afford to stay in a million dollar house and quite comfortable, go for it as one house. But if your needs are satisfied with around 600 to 700K and you can afford to take a little risk compared to rewards, go for 2 houses (not condo, never condo, condos are good for renting).
so 600K towards detached, 400K towards semi/small detached for rent. With low interest rates, lock in for 10 years for investment property and go variable on living house you will not regret....Prem Jotish ne bhi yehi bola tha.
Also try to get new property for main living house and older one rental/investment the risks are mitigated..how? let Rahul respond to this first, where he would rather advise you put everything in RRSP. AshedFC...I lost hopes.

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Originally posted by bhootnath
Simple math...if you are willing and afford to stay in a million dollar house and quite comfortable, go for it as one house. But if your needs are satisfied with around 600 to 700K and you can afford to take a little risk compared to rewards, go for 2 houses (not condo, never condo, condos are good for renting).
so 600K towards detached, 400K towards semi/small detached for rent. With low interest rates, lock in for 10 years for investment property and go variable on living house you will not regret....Prem Jotish ne bhi yehi bola tha.
Also try to get new property for main living house and older one rental/investment the risks are mitigated..how? let Rahul respond to this first, where he would rather advise you put everything in RRSP. AshedFC...I lost hopes.

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Thanks for the response folks . .. Just wondering how your answers would be if some one had 400K in cash ....... 4 houses or 2 ?

My q stemmed from the fact that some people wish to risk averse and would try and save on mortgage interest by securing the first house with what ever they can afford .

And yet mostly others would take some risk and set up two properties simultaneously - it would involve maintence and head aches and the risk of bad tenants but in the end you d have 2 properties .....

'In Canada real estate seems to be a good investment from rental perspective after you have exhausted your RRSP / RESP /TFSA constributions' .... quoting an investment person on the radio.

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Fido.

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Originally posted by Fido

Thanks for the response folks . .. Just wondering how your answers would be if some one had 400K in cash ....... 4 houses or 2 ?

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