Hey @residentevil7 I don’t want to discourage you but I am the type of guy that will give you the hard facts over holding yoru hand… It sounds like you are younger (could be wrong) but I have been around the bush in the investment world (I do it for a living) and I have some advice for you…
The stick
1. That 3k you have will do nothing to buy a house, it’s not even close to the minimum of 5% which you have to have in Canada for a home. You would need at least 10-15k to get into something decent that you could flip in a few years. Any bank worth their salt also will not even have a conversation with you if you do not have some sort of job or income. Also on top of that no one will pay market value for a gaming computer or any electronic device, markups are so narrow for new stuff and there is something new coming out that trumps the old stuff on a monthly basis that it’s a losing game.
2. Properties are BLOODY EXPENSIVE over the time of ownership, there are tons of hidden costs involved like repairs… if you roof goes there is an easy 5 grand to fix. There is also mortgage interest and insurance, strata fees, utilities, etc etc etc. This over time adds up fast and actually does nothing to make you money, here is a great tool to see rough costs http://www.calculator.net/canadian-mortgage-calculator.html (there is an american one as well on that site just have to look for it). As you can see punching in the numbers will show you all the extra crap costs you have to pay that will net you no return. You need to have a good nest egg set aside for the costs that do and will come for own property.
3. TAXES!!! I hate paying tax, it usually ends up going towards something I do not believe in and or to worthless projects that corrupt/useless city planners come up with. Houses have tons of taxes added to them like property tax which usually is in the thousands of dollars.
The carrot
1. Properties do tend to go up in value over time… however it is not the house that goes up it’s the land that it sits on that goes up in value. So what you could do is buy vacant land in a decent area or close to where other development is happening and sit on it for a few years and try to sell to make some cash that way.
2. Gold and Silver are amazing and stable investments however you do not make great returns on them. Silver though I believe will be in much more demand in 10 to 20 years as it is used in solar panels. You also do not need a lot of money to get in started in it either.
My Advice
1. If you want to get into the property game they best way to do it is buy shares in REITS (real estate investment trusts). These are basically companies that own property and rent them out to tenants like Walmart or really anyone else for that matter. They are exempt from a lot of tax because most of their profits go to shareholders, they also pay a monthly distribution (like a dividend) to shareholders. You also do not need hardly any money to invest in them, to buy one share in the cheapest one I own is around 13 bucks which nets you .08 cents per share. So for example if you take your 3k and buy shares (3000 / 13 dollars) that would net you 230 shares of stock and generate you $18.46 per month (230 x .08). It’s nothing to live off of but it adds up as you can reinvest that money back in for more money next month. Check out http://www.hughcalc.org/drip.php for how drip works (google stock drip as I am to lazy to explain). There are tons of REITs out there and not all are good so you will have to do your research on them, but the best thing I like about them is that I technically get to own property without any of the risk or costs of owning property.
2. Buying bullion (gold silver etc) is good at any time and I can’t really explain it much more than that lol.
Knowledge is power..... Don't waste your brain on bullshit
Beer 3 years, 7 months ago.
