20 Jul (Canada) $50 000 Saved – Buy duplex or rent?
Hi all. I'm 22, living at home with my girlfriend, and have $50 000 saved up. We are wanting to move out, and initially we were just going to rent. I stumbled across the advice to buy a duplex, live in one unit with my girlfriend who would pay me rent, and rent out the other unit. This way my monthly payment for a home would build me equity in the property and possibly generate rental income, instead of being wasted on rent. I understand there are a lot of additional costs with purchasing a property (property tax, closing costs, maintenance, the headaches that come from having a tenant, legal costs, opportunity cost etc.) but if we are going to move out anyways and aren't planning to move cities, why not? I'm very ignorant when it comes to this stuff as i've just recently stumbled across it so i'm just trying to learn a little more.
Is this a good idea?