First Time Buyer Needs Advice

[Andrea Moren]

Hi all -

I'm a big fan of BP and have been listening to the podcast and following the threads for over a year now. I figured I would reach out to the community to ask for advice. 

I have saved enough for a 20% deposit (100k) to buy a 1-Bedroom Condo in Toronto - Canada, or a slightly larger unit in the outskirts of the city (Etobicoke, Mississauga, etc). However, the decision of where and what to buy has been really difficult for me as this would be my first real estate purchase. I don't personally know many people who have purchased a condo / house and as a result, getting good advice has been a challenge - so I would love yours. 

Currently, I have three options:

1. Buy a 1 bed, 1 bath condo in a prime location in Toronto and rent it out. (~500 - 550K)

2. Buy a larger sized unit with 1 bed, 1 bath condo in the outskirts of Toronto (location not as prime at option 1). (~$450 - 500k)

3. Invest in a pre-construction condo with a projected occupancy date of 3 - 4 years

Similar to many others here, my goal is to begin investing in real-estate and get my feet wet and in the long-term, I would like to own multiple properties that I rent out or flip.

My questions are:

• Which option would be a safer bet?:
  • Is it worth leaving the core of Toronto to buy a unit that is larger and priced lower per SQF compared to the core of Toronto?
  • or should I consider buying a less expensive condo in the Greater Toronto Area (Etobicoke or Mississauga) and save some of my deposit (~20,000) so that I can buy a second condo sooner?
• In general, is it worth putting all my money saved toward a deposit on a condo?

Thank you in advance for all your help