Purchasing a house with an SLOC to re-sell after college : personalfinance

by akoloy


Hey all,

Just floating this concept round in my head so do not yell at me if it is silly, LOL. Just attempting to gauge if it is outright batsh*t insane or solely minorly loopy. So principally, I’m a Canadian heading to grad college within the US (Tampa) and am wanting round at housing. By my fast calculations it will value me round $20,000 USD over two years if I resolve to hire, which is together with utilities and such. Of course, that’s 20k that I will not ever get again.

But, I’ve entry to round $70k CAD in a pupil line of credit score for these two years whereas I’m in class, which goes for use to assist with housing it doesn’t matter what. It additionally permits me 24 months of interest-only funds after I graduate. So I used to be pondering:

There are half-decent 2-3 bed room cellular properties within the space for round or below 20k USD that I may purchase outright. I’d like to make use of it for myself over the two years, after which re-sell after I go away college to pay again the LOC. I do know that manufactured properties can typically lower in worth, however I’m not a partier or something and I take nice care of the locations I reside, and I determine that even when I promote it at a slight loss that it will be higher than spending 20k on hire that I will not ever see once more? Additionally, there may be the potential for me renting out to a different individual to assist cowl the land lease/ insurance coverage/ curiosity…

I’ve thought-about the price of repairs if something had been to go improper, additional utilities, taxes, and so forth. I’m fortunate sufficient to have my snowbird mother and father close by for half the yr too, if one thing horrible had been to occur. And from what I’ve gathered it will not breach the phrases of my contract because it’s getting used for a roof over my head whereas I’m in class. What am I lacking (I’m positive rather a lot)?

Keep in thoughts that I must pay curiosity (Prime + 0.5%) on the stability of the LOC, and it is a international funding property for me as a Canadian, so consider all of the caveats that include that.

Thank you upfront for any perception you pretty financially inclined folks can present, and for indulging my maybe ridiculous musings.

TL;DR- would shopping for an affordable residence that I can presumably re-sell after two years of faculty be a greater monetary choice than being a pupil renter?



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