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Should i buy a home or an investment property first?

I have saved $50k and have no idea what to do with it. I have a good job and no debt at all. I want to get a home but im not sure which way to go.
  • March 10 2014 - Barclay-Kingston
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Answers (5)

Profile picture for Internal
I would buy an investment property first. Investment properties are harder to finance and you have the benefit of not only using the interest on the loan but depreciation as well for tax purposes.
  • March 11 2014
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Profile picture for sunnyview
Hard choice. I might buy a home with an eye on investment since profit on selling a primary residence is tax free up to 250K for a single person and 500K for married people. If you live in a house for 2 out of the last 5 years your profit is not taxed.

It can be hard to find a primary that you like that pencils for investment, but not impossible if you have a smart agent who can help you run numbers.
  • March 11 2014
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Profile picture for user6064703
You asked which you should do first, which I will take to imply that you are going to buy an investment property at some point.  If your goal is to become a real estate investor, you should be making this decision from that perspective.

If so, then I would personally buy an investment property first.  Another great option is to buy a multifamily property and live in one of the units.  There are a lot of moving parts to this decision, however, so your situation may dictate otherwise.
  • March 11 2014
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Profile picture for Dan Tabit
Being an landlord is a second job that's not for everyone. You need a place to live, so I would encourage you to buy a primary residence first and learn what being a home owner is like.  Once you've been a homeowner for a while, you can decide if being a landlord is your next step.   
  • March 10 2014
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Profile picture for wetdawgs
Perhaps one way to ask the question is "do I want to be a landlord?"  (or "am I willing to hire a property manager?" )    
  • March 10 2014
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