AndreaPalladio
Senior Member
You must have had a private mortgage. No bank would lend money on that tight a plan. Also, why would anyone want to be a prisoner to their mortgage like that?
^Finally you proved my point: buying a GTA condo simply isn't affordable to anyone earning less than $50,000/yr (being generous--really, $70k more realistic if you don't want to eat at soup kitchens for 10 years!)
Now let's face the music: could a $35,000 salary buy a $95,000 home in Hamilton with a 25% down payment? My proposal--assuming you have $100,000 in cash like the girl says she does but a $35k income--buy two cheap ($95,000) Hamilton houses--or a combined price of $200,000--with a 25% ($50k) down payment. Rent out one home as a rooming house or 3 apts ($1300) as a "slum lord" (ie minimal maintenance) and live in the other house with 1 attic apt rented out for $500/month.
As a non-mathematics whiz, the numbers are making me dizzy so I ask a fellow guru: would rental house income(conservative estimate $16000/yr)+$150,000 mortgage+owner-occupied dwelling (with one rental unit producing $6000 income) result in living for "free?" Or at most, $4000 of $35k income devoted to housing costs.
Judging by the $200,000 condo answer above, I'd guess yes!
Now in Hamilton, how much do you think a $95,000 house will be worth in 2030? $200,000?
From an investment pov and living on a moderate income does my plan make any sense?
thx in advance