Buying the first condo
We bought our first condo at the age of 25, in March 2010. Hard to believe, but even with the mortgage, strata, taxes and money set aside for maintenance, we were paying less for our condo per month than what we paid to rent in Vancouver!
When we first bought the condo, it was assessed at 210k. At the time, we paid 250k for it, 10k less than the asking price. We got our latest assessments this week and it’s now valued at 258k! Sweet! I know it’s only money on paper, but it’s pretty satisfying to see the numbers go up.
Our mortgage stands at 238k with a variable interest rate of 3%. It used to be lower, but as we all know, interest rates have been going up. *sigh* We make monthly payments which are higher than the minimum and(so far) make one lump sum payment per year.
Original by D Sharon Pruitt at http://www.flickr.com/photos/pinksherbet/2573760229/
Turning it into a rental property
Part of my early retirement plans hinges on income generated from rental properties. I plan on one day owning 2-3 properties which generate a net monthly profit. It’s part of my larger plan of real estate, stock, and dividend investment.
After living in our condo for a while, we’re currently renting it out for $1050 a month. This is a pretty good price for our one bedroom in this particular area. Meanwhile, we’re renting an apartment in a very desirable area of Vancouver which is walking distance to both of our workplaces. It’s an older apartment and not as newly renovated as our condo was, but it is located in a much more convenient location. Plus, after accounting for rent, bills and utilities, it’s cheaper – so we end up making money!
We’re putting that rental profit into an ING account which will one day be our downpayment on another condo.
And it continues…
So that’s how things stand! We’re pretty pleased with our current progress and optimistic for the future.
