I was talking to my daughter today about the subject of buying her first home, and I want to share the same advice with anyone who might be reading out there in cyber-space.
It only makes sense that your first home purchase be a duplex, where you can rent part of the house.  Of course, when I mentioned this to my daughter, her first reaction was to assume I wanted to move in with her at some point.  We both baulked at this! But really, having a rental unit spreads the debt load and helps the first time home buyer to reduce their debt faster.  Not only that, part of the interest is tax deductible.  One guess as to when in the life of a mortgage we pay the biggest chunk of our monthly mortgage instalment in the form of interest - yes, it's in the first ten years of the mortgage.  How wonderful to be able to write some of this off, when it's at it's highest?  Definitely, the smarter way to go.  Don't let ego get in the way of what is truly beneficial - maximize all opportunities to build wealth and get to where you have true financial freedom, when you are debt free!



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