To live or to Rent?

[jlprato]

Hello, I`ve been reading a lot about the REIN System and I think I`m ready to start with my first purchase. I`m rented right now and I don`t know exactly what to do, to buy my fist real estate asset (for rent it) or to buy my own home. Please... Help!

 

[BMironov]

QUOTE (jlprato @ Nov 21 2007, 02:32 PM) Hello, I`ve been reading a lot about the REIN System and I think I`m ready to start with my first purchase. I`m rented right now and I don`t know exactly what to do, to buy my fist real estate asset (for rent it) or to buy my own home. Please... Help!


Hello,

You have a lot of ways to move forward, and only one to stand still (it is not me who said that

)

I would recommend you to:
1) read Don`s book (check "REIN bookshelf" thread on this forum)
2) join REIN
3) purchase real estate property(ies)

I believe that you finished first step already.

There is no simple answer for your question because only you know your goals. You should decide how to live: in own house/condo, or in one half of duplex and renting out another half, or in triplex, ... or live in one property and renting out another, ...

Hope that helps,
Boris

 

[Peter]

QUOTE (jlprato @ Nov 21 2007, 01:32 PM) Hello, I`ve been reading a lot about the REIN System and I think I`m ready to start with my first purchase. I`m rented right now and I don`t know exactly what to do, to buy my fist real estate asset (for rent it) or to buy my own home. Please... Help!


There are definatly a few factors when deciding weather to purchase a home or a first investment property - more specifically, the future implications of your decision. For example, if you purchase a revenue property prior to a residence, depening on your financial situation, you may run into challenges when you decide to purchase a home and are planning on putting down less than 20%.

Ensure that you have discussed your investment goals with your banker or broker and that they are aware of what your plans are. A good broker will always be thinking 3 moves in advance, and if what you are looking to do now, will compromise your plans in the future, you need to be aware of it.

Thanks

 

[ToddStokowski]

Peter and Boris are very correct, but if you are not sure about which way to go, consider buying an house with a suite in the basement and live in the cheaper of the two units and rent the other unit. It`s the best of both worlds and you may be able to get principal residence financing on the purchase (check with Peter/Rob or your broker).

Just my quick reaction thoughts.

Todd

 

[invst4profit]

As others have pointed out you must decide your future. Is it real estate investment or home ownership that is most important to you now.
Your personal home is not an asset it is a liability that will hold you back from investing. On the other hand tying up your cash and/or credit in a business will hold you back from home ownership.
You can do both but it is very difficult to start both at the same time.
If you buy a home you can build up equity and savings to invest in the future or stay renting, invest, then buy a home in the future from your investment income.