I could be a pompous punk and brag about my real estate investment I made in college—but I won’t. Why not? Because it wasn’t the greatest decision of my financial career. I’m proud of my decision to purchase a condo at a young age, but I wish I did just a little (okay, maybe lots!) more research. I hope that all of you aspiring real estate investors peruse this post before you transfer your hard earned savings to a mortgage down payment.
We all know that you have to put aside money for your mortgage down payment. Unfortunately for all of us, this is just the beginning of the plethora of costs! These are a few additional costs you need to consider with a real estate investment:
Real estate isn’t really the greatest investment. Let me rephrase, real estate can a highly lucrative investment—but not always! There are many investment options out there. Let me share some other investment ideas with you guys that could be more beneficial than real estate:
You really never know what’s going to happen. One bad shooting, one negative consumer housing report, or even a shift in social trends, and the area your property is located in decreases in value. Oh did I mention the potential of a housing bubble burst?
I took the risk of buying a condo that is just outside of downtown Toronto in an area that’s currently not in the greatest condition. I can live with this risk because I’m a young, single dude. Not everyone can handle this type of risk. Where does your risk tolerance stand? Can you handle losing some money upfront? Can you wait before you “cash out?”
I hope I didn’t scare anyone away from a potential real estate investment. Do any of you guys have stories you would like to share on the topic?
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