The 5-10% down strategy
Subject to what most people think, the 5-10% down exists for everyone, regardless of it being a first time home purchase or not.
Yes, that means you can purchase a property at 5-10% down - we’ll be sharing how that’s true momentarily.
The 5% down model (moving forward when you see 5%, assume 5-10% down) is applicable to anybody purchasing a home that they intend on moving into for a personal residence. Furthermore, it is applicable to those with the “reasonable expectation” being that they are purchasing it for a
The trick here is as follows,
In the essence of purchasing a property while being wise and doing so as an investor would, purchasing with limited down payment, & turning a personal residence into an investment - you could purchase a single family - to duplex utilizing the 5% down strategy.
You could use this model once, or you could use it multiple times, so long as you were reasonably going to be or have moved into the property. The reasonable expectation prior to being flagged, potentially, is once annually for a number of years before questions begin being asked. This is advantageous of course, as today, the average home price is ~$350,000 and a 5% down payment is $17,500 (much easier to acquire then, 20% down at $70,000).
You can leverage the 5% down model on single families and duplexes, and as low as 10% down for triplexes.
The idea here, is you could reasonably acquire a new duplex every single year for a number of years for as little as 10% down on each, or 1-2 single families a year for a few years (until you max out at your financial institution or denbt servicing ratio cap out, but generally speaking, you could certainly begin with a couple investment properties).
This among the other strategies we’ve spoken of are great ways of turning your primary residence (both a liability and an investment, reasonably) into a creative financial & wealth building tool.
Be sure to speak to a mortgage broker for the full details, ins and outs & staying up to date with the above information.
