Buying a investment property and place to live.

Benia · Joined: 11 Jul 2007 Posts: 6

Hello Everyone!

First of all I would like to apologize for my English. My question is.
I own a single family home which I bought in 2004 for $615,000.00 with 20% down payment. For 3 years I was paying interest only, so the balance I own on the house is $492,000.00
My parents currently live with me, I am not married yet and not planning to get married in the next 5 years. I have $500,000.00 in my personal checking account. I am thinking to buy a one bedroom new condo for $500,000.00 so I can live in this condo for now and my parents can stay in the house. What should I do? Should I put 10% or 20% as of down payment? Should I get the down payment form the equity of my house or use my own money? What would you do if you have $200,000.00 in equity, $500,000.00 in cash and new condo as a investment?

Thank you!

Haplo · Joined: 20 Jan 2005 Posts: 2406 Location: Springfield, IL

I would recommend you speak to a Certified Financial Planner, and not some guy from Edward Jones. With your situation, there are a lot more considerations than simply "I have this much money, where should I take it from?"

The new home would be an owner-occupied property, so that is in your favor.

Benia · Joined: 11 Jul 2007 Posts: 6

Thank you Haplo!

carlel · Joined: 08 Jul 2007 Posts: 10

i think with the money you have you can afford to pay off your mortgage and have enough left for a big deposit on the flat for your parents!

Benia · Joined: 11 Jul 2007 Posts: 6

carlel wrote: i think with the money you have you can afford to pay off your mortgage and have enough left for a big deposit on the flat for your parents!

Then I won't have anything left.

Haplo · Joined: 20 Jan 2005 Posts: 2406 Location: Springfield, IL

Yeah, that's why I suggested talking to an adviser :)

If you don't have anyone locally, I can have you speak to my adviser. He's here in IL, but licensed in many states and if he's not in yours, I'm sure he'd be willing to do so. He truly enjoys what he does, rather than simply making commissions. Let me know if you're interested in speaking with him, and I can set you up.

Benia · Joined: 11 Jul 2007 Posts: 6

Haplo wrote: Yeah, that's why I suggested talking to an adviser :)

If you don't have anyone locally, I can have you speak to my adviser. He's here in IL, but licensed in many states and if he's not in yours, I'm sure he'd be willing to do so. He truly enjoys what he does, rather than simply making commissions. Let me know if you're interested in speaking with him, and I can set you up.

Thank you Haplo. I don't like to waste anybody's time, I will let you know when I'm ready to talk with your guy. Thank you again.