Building Wealth

Submitted by sguram on Mon, 01/25/2021 - 12:26

Hello fellow REITE Clubbers :-)
My name is Suman and I am new here. I am not an investor per say, but I am looking to grow my wealth via real estate. I am seeking some expert advice.
My parents kindly gifted me a one bedroom condo in 2015 in Toronto's Distillery District. The mortgage is paid off and I am now beginning to look for a home outside the city. I am looking for a place to call home for a few years, as well as one that will appreciate in value well. I am thinking of Barrie or the Hamilton area. I am interested in a new build home. Many of the new construction projects I am looking at have a closing of 2022-early 2023, which is fine.
My question here is, would you sell the condo and use it to purchase the new home or would you keep the condo as an income property? I do not have the entire amount for a down payment so my parents were willing to help, however I realized I could take equity out on my condo and use that as a down payment, as well as upgrade the condo. Help! SG

- March 16, 2021

Hi Sguram. Yes you are correct you do have options to keep the condo as an investment property and leverage that equity you have available to help you with your down payment on a principal residence and to also upgrade the condo as well. You do need to qualify to carry both the mortgage on the condo along with your new home. You will be able to use the rental income from the condo to help out with this. Jodi Habel | Mortgage Agent | The Windrose Group