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Stormspirit · 02-25-2015, 09:02 AM

I'm in my mid 20s and currently in 1.3 million cdn mortgage debt. 1 million of mortgage is invested into 3 condos in HK. The remaining 300k just got approved for a 2BR 2 Baths upcoming apartment in Richmond; however, we are planning to rent out our house and downsize into the apartment instead. I have names on all of them, but the only thing I did was sign for the loans. My parents are the ones who forked out the down payment for these investments.

What they do with the 3 condos in HK is chop it up into 4 individual suites and rent them out. Currently those 3 condos in HK monthly rent covers the mortgage and a little extra, however, in book value, they have all rised by 30% in less than 2 years. Couple senior members in the family have already made 300k-several million cdn by doing this.

I let them do this to my credit becauae it's my dads only way of investing. He's not good with stocks, and mutual funds etc only earn him so much and his day job business is sinking ship. Besides, I probably can't put down my own downpayment for another 5 years or more. The question arises every now and then... "What happens if real estate crashes?" Their theory is, if it crashes, then the tenants will continue to pay for the mortgage and eventually it will rise back up in 5 , 10, or even 20 years. In addition, if we just keep it and never flip it, in 20+ years, the property will be paid for and we will officially own it.

The crash has already happened once in 1997 when they took more than a 50% loss on a property investment, so I'm sure they realize this is a possibility.

The only big contribution I made to the family was this. Without my average paying job, the last 300k loan would never be approved. My sibling who owns a small business cant get a mortgage due to not having "stable" income, so in a way they are thankful for me which is nice. For the arguments of rent vs buy.. buying can be another form of investing. It's just some people have ways to get better returns investing in something else rather than real estate, thats all.

02-25-2015, 09:02 AM	#3245
Stormspirit I don't get it Join Date: Oct 2010 Location: Vancouver Posts: 433 Thanked 96 Times in 49 Posts Failed 198 Times in 44 Posts	I'm in my mid 20s and currently in 1.3 million cdn mortgage debt. 1 million of mortgage is invested into 3 condos in HK. The remaining 300k just got approved for a 2BR 2 Baths upcoming apartment in Richmond; however, we are planning to rent out our house and downsize into the apartment instead. I have names on all of them, but the only thing I did was sign for the loans. My parents are the ones who forked out the down payment for these investments. What they do with the 3 condos in HK is chop it up into 4 individual suites and rent them out. Currently those 3 condos in HK monthly rent covers the mortgage and a little extra, however, in book value, they have all rised by 30% in less than 2 years. Couple senior members in the family have already made 300k-several million cdn by doing this. I let them do this to my credit becauae it's my dads only way of investing. He's not good with stocks, and mutual funds etc only earn him so much and his day job business is sinking ship. Besides, I probably can't put down my own downpayment for another 5 years or more. The question arises every now and then... "What happens if real estate crashes?" Their theory is, if it crashes, then the tenants will continue to pay for the mortgage and eventually it will rise back up in 5 , 10, or even 20 years. In addition, if we just keep it and never flip it, in 20+ years, the property will be paid for and we will officially own it. The crash has already happened once in 1997 when they took more than a 50% loss on a property investment, so I'm sure they realize this is a possibility. The only big contribution I made to the family was this. Without my average paying job, the last 300k loan would never be approved. My sibling who owns a small business cant get a mortgage due to not having "stable" income, so in a way they are thankful for me which is nice. For the arguments of rent vs buy.. buying can be another form of investing. It's just some people have ways to get better returns investing in something else rather than real estate, thats all.