Re: Canadian/US Dollar and Investing
K bahi :) Well my hunch is that she has some where around 50 to 80 Grand . ( that’s what my faal wala toota told me) and yes indeed she can go down to the route of acquiring a property on mortgage but as interest rate are going up every quarter , will she be able to cover it from rent ? from me peanut knowledge , I don’t think so . Then she wants to make a short term investment for 4-5 years .
we have fixed interests here as well as adjustable rates. one can go for a fixed interest rate
lets say she has 80K and she buys a 150K codo and has a 30 year mortgage on it at 5 5/8%.
her mortgage pmt would be about 400 bucks a month, tack on lets say a couple of hundred for property tax and lets say its 700/month.
if she rents it out at 1000/month then she has
1)$300 cashflow each month that she can just not touch and invest in mutual funds
2) increase in her equity in the house
3) apprciation in property value
now of course this depends on real estate market conditions.
plus I suggested REITs as well, you can move in and out of them easily and if the real estate market is doing well u get the benefits without the risk of being in a situation where you are stuck with a physical property