5 THINGS I WISH I KNEW ABOUT REAL ESTATE IN MY 20S
The real estate market is difficult to figure out, especially for someone in their early 20s, but over the years, I’ve come to realize that there are 5 things that I really wish I knew about real estate when I was in my 20s. If only my 30 something-self could talk to my 20 something-self; here’s what I’d be sure to tell him about real estate:
- •Buy a house (in Toronto)! Think you can’t afford it? Like they say: where there’s a will, there’s a way. Come up with just 5% to put down, and then you can rent out the rooms to your friends that are working those long hours in downtown offices; the house will only serve as a roof over-their-heads.
- •Refinance your first purchase. That way, you can buy a second place. It seems crazy to think about buying that much property at a young age, but think about it: you could buy another property, with 3 (or even more) units in it. In most cases, those 3 units will be able to cover the costs of the house.
- •Buy, and then hurry up and wait. Did you know that on average, that land values in Toronto doubles every 12 years or so, all the way back since the Second World War (that was in the late 30s).
- •Find someone that knows more than you do. Find someone that you can look up to as a mentor. Those types of positive role models are invaluable; they can calm your concerns and suggest the best time to leverage to buy more.
- •You can always rent… it out. Think about renting out your house as an income generator to get some positive cash flow going. If you rent it for more than what you pay for it, you’ll be making money. You can live in a cheaper space while you’re pulling in easy money on your rental property.
- •Bonus point: Above all, I’d tell my younger-self, don’t be scared to take risks, just make sure they’re calculated and thought-out. Real estate, at the end of the day, is always a good investment.