Should I do it or not?

[ghanaba]

Hello,
I've been thinking lately to get into the real estate market.
I live in the GTA..
Currently living in a 1yr old house, the builder is putting up phase II, checked them out decided to buy one and rent the one I currently live in. I have commited to anything yet, so I can easily walk out of any deal.
Is this something worth it now at the moment, or just wait.
What are some of the pitfalls that someone you out there have experienced?

I told them that in order to get into this house I need to have a side entrance to the basement, all brick, 9ft ceilings. I guess I have to negotioate all this before I commit to anything..

Another part of me says, get an older home close to a university or hospital and rent them out. I am about 45min from Kitchener and Toronto and only 10 mins from Hamilton area.
The only thing I wonder is how the banks deal with the 2 mortgages.
Should I rent one first and then go talk to the bank and get a mortgage for the new one..
How should i go about this.

This new house will be available Srping of 2011..

[LondonTown]

You need to do WAY more research and provide WAY more information before anyone can tell you if it's a good idea. On first glace, I'd say, no, it's not a good idea.

[stealth]

Another option might be to buy in now and sell it as soon as its completed. I know of a few ppl who have done this and made 20-30k.
You'd want to find out more about the rental market in your new area before embarking on it. Places like Hamilton have notoriously low rent. And stay away from universities for renting...you dont want to be in a rooming house situation.

[onlineharvest]

In terms of financing, I've talked to others who were considering doing the same, and required co-signing to get a 2nd mortgage (and they have good incomes). There is currently a thread in the Personal Finance board on this forum about 'Real Estate investing' or something to that effect.

I'd shy away from it all, especially if you need to mortgage the rental property, and you'll see why on that thread. Too many variables in play and it is NOT passive income by any stretch of the imagination. And since there are tax implications that may be unique to your situation, you need to speak to professionals who will assess your pros and cons.