Buying your next home, secondary home or investment property?  Here are some tips to guide you through your next property purchase.

Buying Your Next Home or Secondary Home

A common myth in Canada as it relates to down payment is that only first time home buyers can contribute a down payment of less than 20%. Incorrect!

Homeowners who are looking to buy another property to reside in or a secondary home indeed can purchase with as low as a 5% down payment. While there are advantages and disadvantages in doing so, it’s important to know that you have options.

Buying an Investment Property

Investing in real estate is an excellent way for Canadians to build their net worth over time as it relates to cash flow and equity growth. However before you start, it’s a good idea to educate yourself about the responsibilities that come along with owning an investment property.

Start by reviewing your personal finances and determine whether you can afford to carry an investment property.

Here are some expenses you should consider to help you decide:

• A minimum down payment of 20% is required
• Lawyer fees and other applicable closing costs
• Income generated to cover the mortgage payments, property taxes, utilities, insurance, vacancy contingency, and any other expense associated with the property

Buying and Selling a Property

There are a lot of important decisions to make whether you are buying a new home, selling your current home, or just looking for the right place to relocate.

Should you buy before you sell or sell before you buy?

Whether you want to sell your existing property or buy your new property first really depends on your strategy and risk tolerance. There are advantages and disadvantages to both methods. Take a look at the table below to compare the two options: