Buy Smart = Invest Smart
How to Buy Your First Home / Rental Property... buy smart = invest smart.
Buying your first home can be an exciting milestone! If you are interested in investing in real estate one day, consider purchasing a home that can eventually become your first rental property—a smart, two-in-one strategy. A double whammy!
Here’s a step-by-step guide to help you get started:
Step 1: Save
You can start by saving up for your purchase. One excellent tool to help you save is the First Home Savings Account (FHSA). This tax-free savings account is designed specifically for first-time homebuyers, allowing you to contribute up to $8,000 per year and a lifetime limit of $40,000. The FHSA combines features of a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP). The best part? Any savings you withdraw to buy your first home don’t need to be paid back!
Step 2: Buy
You're ready to buy once you’ve saved up enough, usually a 5% down payment. For example, for a $400,000 property, you’ll need $20,000 for the down payment.
When choosing your first home, consider its potential as a future rental property. Look for features that can increase its rentability, such as:
A basement suite
A separate entrance
A garage
These features can make your property more attractive to renters and provide you with a steady income stream in the future.
With these steps, you’ll be well on your way to purchasing your first home and kickstarting your investment journey. Happy house hunting!
For more information, contact your family real estate team :
