I have $20K. Should put it into my mortgage principle or use it as a down payment for investment property.?

I am in my late 30's and live in Vancouver. I purchased a two bedroom condo in 2005 and have a $180,000 mortgage (the condo is worth $300,000). I have an extra $20K that I was thinking of putting into the pricipal but I came across properties in St. John's, Newfoundland for approx. $125K that were yealding $1000 in rent. (I have family in St. John's that could look after things for me.). Do you think my money would go further purchasing a rental property or putting into the our principal mortgage?

Your payment will not go down much by putting that amount into principal, unless you re-fied and put that as money down, you could get a better rate. If you are already set up with a decent loan on your primary residence, leave things the way they are and invest in something else, another property. Your mortgage on that new property, at 100% financing or after putting 5% down (roughly$6200 of that $20k) would be super low and your renters could probably cover it. Or put the $20k into a mutual fund for 3 months or CD, they are paying great APR.

Neither, save it for a rainy day or your retirement.

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Investing in property is a good idea, but do your home work & make sure of the value of what you buy.

I would be best if you were close to your investment.

You won't make much money if you have to pay to have every thing done. The more you can do your self the better.