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photon · 09-21-2006, 03:55 PM

Basically you'd get e line of credit or a 2nd mortgage to get access to that equity. Keep in mind when you do that your payments will increase so you have to be prepared for that.

You also have to identify what you want to buy. Just buying any $300,000 home won't do because the likelyhood that you could a) find a house to buy for that in Calgary that b) would be able to rent out and cover the mortgage is pretty unlikely, unless you put down a huge down payment.

But taking your example you'd put down $75,000 on the house and get a mortgage for the rest. So you'd also have to qualify for a mortgage on the new property. Once you purchase the property you rent it out for an amount that hopefully covers your mortgage, taxes, and a bit extra to cover future repairs and such.

But like I said, it's tough to find those in Calgary, Edmonton, Red Deer, and Lethbridge are easier. Edmonton is a good place IMO to invest IMO.

EDIT: Wow, beat to the punch many times over.

09-21-2006, 03:55 PM	#46
photon The new goggles also do nothing. Join Date: Oct 2001 Location: Calgary Exp:	Basically you'd get e line of credit or a 2nd mortgage to get access to that equity. Keep in mind when you do that your payments will increase so you have to be prepared for that. You also have to identify what you want to buy. Just buying any $300,000 home won't do because the likelyhood that you could a) find a house to buy for that in Calgary that b) would be able to rent out and cover the mortgage is pretty unlikely, unless you put down a huge down payment. But taking your example you'd put down $75,000 on the house and get a mortgage for the rest. So you'd also have to qualify for a mortgage on the new property. Once you purchase the property you rent it out for an amount that hopefully covers your mortgage, taxes, and a bit extra to cover future repairs and such. But like I said, it's tough to find those in Calgary, Edmonton, Red Deer, and Lethbridge are easier. Edmonton is a good place IMO to invest IMO. EDIT: Wow, beat to the punch many times over. __________________ Uncertainty is an uncomfortable position. But certainty is an absurd one.