How I Made My First 100K In Real Estate

A Thread

4 years ago my wife and I purchased our first home

Since I knew I wasn't going to be living here my whole life

I wanted to buy something that would enjoy

And increase in value as much as possible

If I were to sell my house today I would make a 100K profit

Here is how I did it

There are many factors that played in my favour

Some I controlled and some I didn't

What I DID NOT control

1- Law changes in my country that pushed more buyers in my area increasing property values

2- Tax breaks that allowed me to save 15k+ on my purchase price

What I DID control

1- I purchased a new construction on plan

This means the building was not up yet

Where I'm from builders are eager to sell units fast at the beginning of a project

Their bank wants to see a certain % of units sold before they start funding the construction

This is great if you are one of the first to buy since the builder is more flexible on price

And they typically increase their unit prices as fewer units are available

I paid around 10k less than some of my neighbours since I was the first to buy

There are some risks involved with this but the builder I purchased from is very well known and have never abandoned a project in the last 30 years

2- I wanted a townhouse

Why?

Because houses were already getting expensive and condos were being overbuilt

So I bet on townhouses becoming hot in the next few years and it paid off

People who would typically look for a condo now want more space since they are mostly working from home

So they are looking for a townhouse

People who want a house find the prices too high

So they are settling for a townhouse

It's a win-win for me

3- Negotiated the price and used my connections

Builders typically overcharge for a lot of the extras they put in

So I negotiated that a few extras would be done by my own people

Not every builder is open to this and I almost lost the deal

But in the end, I was able to pull it off

I saved around another 10K with that

So where does this leave me today

I saved around 35k when I first bought my house because I bought on plan, tax breaks and negotiating

I benefited from a hot real estate market

I bought a townhouse because I predicted the prices will go up

All of this together means that if I were to sell today I would make a cool 100K profit

I hope this was helpful

RT if you think this might help other people!