With mortgage rates set to fall further if you can rent out a resale apartment or a resale townhouse you're looking at a yearly return of 10 to 15 percent which beats a GIC or U.S. high yield bonds or losing everything in the U.S. stock market when the ponzi implodes.Posted by Tony on Thursday, April 4th, 2019 at 8:11pm
Great idea Tony.... until the tenant completely wrecks your place and skips town without paying the rent.
Or worse, won't pay rent but refuses to leave. Tenancy laws are not there to protect the landlords.
If the average condo price = $200K, you'd need a rental income of $1700 pm, a free mortgage, zero condo fees, zero maintenance expense and zero insurance to get a 10% return. And that does not take into account the opportunity cost of the $200K, which cannot be less than $4K annually, which would have to be added to the rent quoted above.
People, if you want to invest, rather than buy a home, don't do it in the Edmonton housing market. Learn from 2008.
Rent for 1700 a month
That's only achievable in Edmonton actually anywhere else it is impossible to get 200k condo ...
What about 5 x leverage with mortgage..math is different with that
Tony, the return from mortgage pay down excluding appreciation would be about 2-3% only.Posted by Wally on Friday, April 5th, 2019 at 2:47am
If the NDP win again, sell everything.Posted by GM on Friday, April 5th, 2019 at 6:47am
Where else can you get properties for 200 or 300k....and rent it out ?Posted by Le on Saturday, April 6th, 2019 at 2:17am
Where did you get this 1700 rent for a 200k condo from? You can rent a very nice townhouse for 1400.Posted by Wally on Saturday, April 6th, 2019 at 4:10am
Looks like QE4 and a fake commodities boom compliments of a falling American dollar with zero interest rates. You want to own rental properties, long term bonds, gold, silver, oil, base metals, American stocks "short term" before the ponzi implodes and possibly Bitcoin.Posted by Tony on Saturday, April 6th, 2019 at 8:35pm
Falling American dollar??? It's at its all time high. Perhaps you mean the Canadian dollar, which is falling and heading lower.
Zero interest rates? Where? I'd sure like to get a mortgage for 0% interest. Please tell me where I can get this.
Right around the corner with the trade deal with China that will destroy the U.S. dollar.Posted by Tony on Thursday, April 11th, 2019 at 6:29am
A trade deal with China is going to destroy the US dollar???
The US doesn't have morons doing their negotiating like Canada does. Their deal will benefit the US or they won't sign it. Unlike Canada.