In my last post, I mentioned I purchased a pre-constructed condo that is worth $380,000 and it will finish construction on September 2018.
I estimated I will have to pay at least six months of occupancy fee before final closing. I will use my salary at that time to pay for the occupancy fees and other payments such as property taxes and condo fees. The $18,000 that I have invested in the stock market will be THE “EMERGENCY FUND”.
After final closing, I will use $10,000 from my TFSA, $25,000 from my RRSP (Home Buyers’ Plan) and my gift from my parents to put more money into my condo. Afterwards, I will get a re-advanceable mortgage from a reputable financial institution, which allows you to pay down the mortgage and increase the Home Equity Line of Credit simultaneously (Anyone know The Smith Manoeuver?). Hopefully I will get a $150,000 mortgage at 3.25 percent amortized over 25 years.
Just a reminder that in order to be qualified for a re-advanceable mortgage, most financial institutions would require the home owner to have at least 20 percent down payment or with at least 20% equity on the property.
I plan to live in this condo for at least two to three years. During those years, I will save up money and use part of my Home Equity Line of Credit to invest in dividend stocks, bonds and mortgages (What do you mean by mortgage? I will get to that later!) My plan is to be able to make at least $200 monthly income from non real estate investments by the time I am 65. Right now I make about $28 monthly from non real estate investments and it is mainly from my dividends from TD.
I would rent out my condo after my second or third to pay for my condo off. After that I….
- Either I use my Home Equity Line of Credit to fund the down payment for my next property, which is going to be a townhouse, detached/semi-detached house, or house, and I will be living on the basement while renting upstairs
- Own a franchised business by borrowing more money according to my appraised value of my condo and seeking more capital from investors
Ultimately, I would like to make a monthly income of $4,500 when I am 65 until I die and to reach a net worth of
“SIX MILLION DOLLARS!”
by the time I reach 65.
What do you guys think of my plan so far? Feel free to comment below! Catch you in a flip!