Personal Finance

Beginner real estate investor

  • Last Updated:
  • Nov 1st, 2012 1:37 pm
Tags:
None
Newbie
Oct 27, 2012
40 posts
Toronto

Beginner real estate investor

Hi im a 17 year old living in markham with my parents im looking for some tips to start investing a condo, i have an idea but it is all very confusing if anybody could give me some basic tips id appreciate it. I have about 10-15k for a down payment. How well does investing real estate go? and does being this young help?
13 replies
Jr. Member
Jul 11, 2010
146 posts
15 upvotes
go ask your parents first, see what they think of your idea

if they are ok with it, then proceed from there. do your own research and don't believe what someone says before asking "what do they have to gain"
Deal Fanatic
User avatar
Jan 27, 2007
5116 posts
984 upvotes
T.
Not sure if this a troll thread or not - mods should check if this is a second user name.

Anyway - OP if serious, it is not wise to "invest" in real estate in this over-priced market. Furthermore, never invest unless you can be cash-flow positive. Will being young help you? No advantage that I can think of.
[QUOTE]I know you are, but what am I.... ;) [/QUOTE]
Deal Addict
Feb 24, 2006
2941 posts
50 upvotes
Most likely not going to happen on your own. 15k is still only 5% down on a 300k condo; and that's before factoring in CMHC premiums, and THEN you still have to factor in being approved for financing from a lender.

Cash flow is what will keep you from going under. The way the condo market is now in the GTA, many new investors are lucky that they are even able to cover their monthly costs (maintenance fees, mortgage/financing fees, etc). Additionally, you will need to set aside cash for your closing costs.

If you want to learn, check some RE forums and see if anyone would be willing to teach you or take you on to learn what it takes. Just be careful of those trying to pull a fast one pestering people to be a JV partner in an undisclosed location because they received a hot tip from their realtor.
Deal Addict
User avatar
Apr 30, 2009
2422 posts
794 upvotes
kenji12349 wrote: Hi im a 17 year old living in markham with my parents im looking for some tips to start investing a condo, i have an idea but it is all very confusing if anybody could give me some basic tips id appreciate it. I have about 10-15k for a down payment. How well does investing real estate go? and does being this young help?
Invest, then rent out?

Or invest, and you move out of your parents home and live there?
Deal Addict
Jan 28, 2009
2013 posts
613 upvotes
Calgary
my investment advice is to put all of the money you've raised into your education.
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
You won't even be approved for a mortgage, you have no income (or very little maybe from a part-time job).

Your parents will need to fund the home via HELOC.
Deal Addict
User avatar
Apr 30, 2009
2422 posts
794 upvotes
canehdianman wrote: my investment advice is to put all of the money you've raised into your education.
Good advice. Since the OP will never get a mortgage (will have to rely on parents to get it), it's best to spend at least the next five years studying, traveling, and learning about life.

Being 17 or 18 and having your tenant call you at 11 pm over a clogged toilet is no way to spend your teen years IMO. Be patient. Real estate will still be around when you are old enough to legally drink.
Jr. Member
Aug 8, 2009
113 posts
13 upvotes
You cannot.

Legally you need to be 18 to own a home.

Any home you buy has to be in your parents name. Any mortgage has to be in your parents name.

Save more money now and do it when your 18...but your parents must buy in since they will most likely need to co sign any loan.
Deal Addict
User avatar
Sep 4, 2005
4118 posts
2270 upvotes
Toronto
I think the OP really meant that he wants to start investing so he can eventually own a condo. (That or he is a troll with two posts).

OP, look into a td e-series and fund that with your spare cash. In a few years when you're 22/23 you'll have a sizable amount of coin in there and will be much futher ahead of your friends in terms of how much money you have.
Newbie
User avatar
Oct 31, 2012
24 posts
1 upvote
Vancouver, BC
You should concentrate the next 3 years in building your credit score. Talk to a banker where you hold your savings and ask them how soon you can get a credit card, most likely when you are 18. You need to have at least 2 sources of credit totaling a minimum of $2500 and have it in good standing for at least 2 years. Lenders want to see a good credit history, and only use around 30% of your total credit.
2nd, you need to have a good stable full time employment, so lender can see that you in fact can carry mortgage on your own.
So advice to you is to keep saving your money, maybe get guaranteed GIC's for a couple of years, then once you are ready go for it!
Deal Addict
User avatar
Apr 30, 2009
2422 posts
794 upvotes
dc88 wrote: Any mortgage has to be in your parents name.

Save more money now and do it when your 18...but your parents must buy in since they will most likely need to co sign any loan.
I've seen this happen many times. Title is put in the parent's names as well. Except it's the son or daughters place.

Top