# First time buyer of town house as rental unit and future home.



## thekeeper (Apr 27, 2015)

Im 22 and wanting advice on buying a 3 bedroom townhouse in Oshawa, Ontario. The place is selling for 210,000, monthly maintainence fees are $220, property tax $2560. I have $40 thousand for a down payment, annual income $45,000 and another $20 thousand in case of faulty renters. I plan on keeping the property rented for 3 years and then moving into it and buying a second property. Any advice on if it is a good time or idea to do this? Also with the 407 going to Oshawa will house prices continue to rise or is a correction in place for the near future in Durham region/GTA?


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## Just a Guy (Mar 27, 2012)

No one can tell you for sure where the market is going, but I think it's quite overpriced. Also, for that price, you'll find it difficult to cash flow.


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## Oldroe (Sep 18, 2009)

Could you give a set of numbers for good cash flow. 

And Is there some good info for first time landlords.


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## Just a Guy (Mar 27, 2012)

Good info for beginners can be found at www.easysafemoney.com. 

As for good cash flow, an easy rule of thumb is the 1% rule. Where the rent is 1% of the purchase price. So, for $1000/month rent, don't pay more than $120k. 

Of course, in this market, finding such a place will not be easy but paying much more is bound to get you into trouble long term if interest rates rise and housing prices drop.


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## Sandra (May 14, 2015)

*buying a townhuse*

That's a good idea. Do not hesitate. Buy it and rent it, real estate is going up anyway!


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## Berubeland (Sep 6, 2009)

Yes and if Sandra is wrong she will send you a check for the amount of money you lost. 

Or no... Sandra won't and it will be your sorry *** losing money every month or all at once. 

The point is no one can predict the future, and the real estate market can go down so Buyer Beware!


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