Rental Property Investment & Eventual Retirement Property

[Kevin Padula]

Hello,

My girlfriend and I (25 & 28 years old) are looking to purchase a 2B2B condominium in the next year or two so that we can live it in for 3-5 years until we purchase a house to raise our family in (more info below on the purchasing details).  Instead of selling the condo we wanted to keep it until retirement and use it as a long-term property investment.  While we live in the house, we would rent out the property to keep the expenses low or hopefully not have any expenses and make money off of the growth in value of the property.  We estimate 3% annualized increase.

This is our first home purchase so we are new to this and would love some advice around buying a condo as a long-term investment property.  One major question we have is what is the oldest condo we should invest in considering we would own it for the next 30-50 years?  You'll notice that the condo price is quite cheap as it was built in the 90's so we are concerned this may be too old.  Is it too early to purchase something as a long-term retirement investment?

Any other general advice around purchasing a condo as a long-term investment would be appreciated!  Thank you!

Purchasing Details:

•   Condo (2B2B): 
  • Year planning to buy: 2021/2022
  • Price: $130,000
  • Down Payment: $26,000 (20%)
  • 15 Year Mortgage
  • Year Build: 1997
• House (3B2B):
  • Year planning to buy: 2025/2026
  • Price: $330,000
  • Down Payment: $49,500 (15%)
  • 15 Year Mortgage
  • Year Build: 2005ish