As the mortgage rules continue to tighten, investors cringe in fear as the dream to expand their portfolio becomes more difficult. Prior to April 2010, investors could snatch up investment properties with only 5% down. Heading into 2013, the rules have drastically changed and are not in favor of the investor. Or are they?
Coming up with 20% down seems like a daunting task. A condo townhome in Kitchener-Waterloo sells for $155,000 with a required minimum down payment of $31,000 (20%). Let’s be real, the average consumer looking to invest in real estate is going to have a hard time coming up with $40,000 all in (20% down, closing costs, land transfer, renos, inspection etc) on an “entry level” condo townhome investment. So how could what seems like a punishment from the government actually be a positive for you, the investor?
Well that’s just it. The government is indirectly trying…
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