[Rathji]

I have recently began investigating purchasing a home for my expanding family. In the process I have started to think buying something with a suite or 3 might be a good idea. Help pay down the mortgage and build equity etc. I have looked at all types, suites in basements, both sides of duplexes with suites etc. I would be a first time home owner so I may have to bring some family in as co-buyers to help with the down payment.

I have looked up tax assessments on the properties I am interested in, and they all seem to be well below the asking price of the house. I have noticed that they price the house so that the mortgage payments would be matching the rental income they is coming from the units. In some cases it is even 20-25% higher.

How reliable is a tax assessment in determining value? Is it normal to price this way in the market? Even if this is a fair value for the home, is this a good time to be buying a home as an investment or will the market ever soften enough to change these prices?

If there are any people experienced in buying or selling these types of homes any input would be greatly appreciated. Right now I would love to be able to make this work, but not if it leaves me owing a mortgage that is worth more than my home for the next 10 years.