In the past week, I had been looking into the purchase of my first property.
As it stands now, I am looking to purchase a 1 bedroom + 1 den condo unit somewhere in a developing city north of Toronto.
The reason for my purchase is to accommodate my aunt who is looking for a unit to move into since her current contract is about to expire. After speaking to her, we found it to be a win/win situation as she will paying rent to a family member instead of a stranger and I would be able to offer some sort of discount on her rent.
This seems like an excellent opportunity especially since my aunt will be a long term tenant and the neighbourhood is undergoing many projects that will lead to appreciation. Here is what I have done so far:
Finding a real estate agent
The first thing that I did was to check out the community realtor to find a real estate agent.
After speaking to an agent, I have discovered that a realtor have more information on listings that are not disclosed in the public MLS system.
We talked about my goals in purchasing a property for a bit and went through a few of the listings. The next step would be to check out some of these listings next week.
The neighbourhood that I am looking into is at the core of the city where there are transit construction projects along with plans to build a university campus in a few years. Personally, I see this area as an appreciating neighbourhood with the option to rent out to students in a few years.
I am willing to spend a maximum of $300,000 for this property at the moment as rent will pay for itself. This means that I would need to come up with $60,000 for a 20% down-payment on the property.
Using rough calculations, mortgage should amount to about $1,000 a month along with the cost of $300 to $400 for the maintenance fee. As my aunt currently pays $1,400 a month, the mortgage should be covered in the rent.
So far this has just been an idea. I will update my blog on my property 1 endeavour should more information come to light. Just out of curiousity, do anyone have any ethical conundrum when it comes to renting to family members?
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