Quote:
Originally Posted by Sylvanfan
I don't know, if you put 5% down on a condo, live in it as opposed to rent it and the property grows at the rate of inflation chances are you'll come out ahead. IMO you put down 5% into something and get growth on 20 times the amount you put in and if you live there it's tax free. IMO that 12500 is netting you a say a conservative 3% retun on 250k, well that 12500 made you 10500 in one year. Name me a low risk investment that will give you that type of return, tax free. You can invest that money in RRSP's but 12500 needs to grow at a much higher percentage for a number of years to outpace the 250k condo growing at 3%. Than factor in what you're paying in rent and who knows. And don't kid yourself investing in stocks, mutual funds is as volatile or more risky than real estate is.
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As a recent graduate / low-income earner (obviously), that's what i did. It's even better if you can go into it with someone else, and accept the fact that at 23 or 24, you're not going to get the mansion that today's salaries say you should be getting.