So you are dreaming of buying a house… and then you look at your bank account, and think it is never going to happen.
There is another way to get into the housing market, and NO, it’s not illegal or grey market. It’s smart and it’s what I would do today if I was buying a house now for the first time.
Real estate prices have soared in the past few years and if you live in a major centre, I’m almost certain you’ve asked yourself, how in the world are you supposed to afford your first home?
Well I would challenge you to question if you can’t afford a home in your desired neighbourhood, whether you could afford to buy a small rental property in a cheaper area where your money could go further. Or consider whether you could partner with a friend or family member to purchase it together?
Hmmm… what? Yup, this is unconventional, but let’s think about it. If you are able to save a small down-payment and qualify for a mortgage, there are actually quite a few benefits to this approach.
Owning investment property can give you all the financial benefits you are looking for, like benefiting from market appreciation, mortgage pay-down and extra cash flow. All the while still giving you the flexibility of living in your desired neighbourhood, trying a new neighbourhood or moving as your career might dictate, to another part of the city.
Being Financially Fabulous means doing things a little out of the norm, but if you’re reading this, I know you’re at least up for hearing me out and exploring new ideas.
Of course there are many complex nuances to buying a house like market assessment and property management, for consideration. An investment requires proper evaluation, due diligence and consultation with experts in the field, even if you are buying a home you are going to live in.
I’d love to hear your thoughts on this approach. Leave me a comment below.