This section is for tenants who wish to become owner of a multiplex.
We all dream about owing our own income property and stop paying a rent. If you are like most of tenants, wondering how you can acquire your own income property.
Regardless how long you have been a tenant or how difficult your financial situation seems, some little known information might help you make the move to change your status from a tenant to an owner. Read the information below, you will learn to:
- Save money for your down payment;
- Stop wasting thousands of dollars in rent.
The problem most tenants face is certainly not their incapacity to meet their monthly payment. Everybody knows that this obligation has to be met the first day of the month. The problem is rather to accumulate enough capital to make the first deposit. Saving this amount of money is not as difficult as you might think if you know the six following facts.
You can buy a multiplex with much less cash than you think.
Local or national programs (such as the First Time Home Buyer’s Program) exist to help access the real estate market. You can also qualify as a first time home buyer even if your spouse owned a house before, as long as your name was not registered as co-owner. For more information, consult your mortgage broker and the borough of your municipality.
You could get some help from your financial institution for your initial deposit and acquisition costs.
Even if you don’t have the initial deposit available, if you don’t have debts and some net worth (like a fully paid car), your financial institution might lend you the funds for your initial deposit which would be secured by that asset.
You might find a seller who can help you.
Some sellers might grant a second legal hypothec lien. In this case, the seller becomes more or less the lending institution. Instead of paying him⁄her the cash for the property, you pay monthly payments.
You can create a cash deposit without incurring debts.
By borrowing money to invest in an RRSP until the required amount is achieved, you can benefit from a tax credit that you will use as cash. It is true that the money borrowed can be technically considered as a personal loan, but the monthly payment might be lower. Then, the money invested in the property and in the RRSP is yours.
You can buy a property even if you have some credit issues.
If you can’t get the minimum amount in cash or provide security for a loan because your net worth is too low, lending institutions will still accept your mortgage request.
You can, and you should, be pre-qualified for a mortgage loan before starting your research.
This is easy to do and will provide you with peace of mind when the time comes to put a promise to purchase on a property. Mortgage brokers can help you obtain an approval in writing at no cost and with no obligation. You will receive a certificate that guarantees the amount of your mortgage loan; very useful when you finally find the property you were looking for. Consider asking a professional specialized in mortgage loans.