This is certainly the right time to buy rental property in some markets. The huge price increases between 2001 and 2008 pushed many potential buyers into the rental market. So the availability of good quality tenants is still there. The entry level new houses are a great investment if you want to keep your hands clean.
As far as landlording is concerned, there are many companies who will manage your property for a small fee. (www.ipinvestments.ca)
There was also a time where I would have said property values were less suseptable to deflation. Anyone coming into the market in the last three years might argue with me, but long term it is a proven leader for beating inflation.
Finding under-valued properties is a full time job. Unless you have intimate knowledge of planning or development proposals, it is difficult and risky to buy under valued properties. It is also more difficult to rent them.
Cash flow is not the be all and end all of property investments, especially as your "pockets" get deeper. Being able to hold a cash negative property for 5 to 10 years can be great long term investing. Look at all the farmers living on the fringe of most cities. Do you think the small guys are making money? Not without farming subsidies. But developers are buying their land at 2,5,10,20 times the price they paid for it.
Buying a property in a nice neighbourhood is like buying a GIC. Sure you'll get 2-4% return over the long term, but is it worth the headache of being a landlord? Not likely.
With the move under foot in most municipalities to encourage higher density and infill and brownfield development, buying a property in a redevelopment area is a good investment. Go in with no money down and assemble three or four properties in a row and market them as a single parcel for a 4 storey apartment.
That means learning about the planning processes in your municipality.
As far as landlording is concerned, there are many companies who will manage your property for a small fee. (www.ipinvestments.ca)
There was also a time where I would have said property values were less suseptable to deflation. Anyone coming into the market in the last three years might argue with me, but long term it is a proven leader for beating inflation.
Finding under-valued properties is a full time job. Unless you have intimate knowledge of planning or development proposals, it is difficult and risky to buy under valued properties. It is also more difficult to rent them.
Cash flow is not the be all and end all of property investments, especially as your "pockets" get deeper. Being able to hold a cash negative property for 5 to 10 years can be great long term investing. Look at all the farmers living on the fringe of most cities. Do you think the small guys are making money? Not without farming subsidies. But developers are buying their land at 2,5,10,20 times the price they paid for it.
Buying a property in a nice neighbourhood is like buying a GIC. Sure you'll get 2-4% return over the long term, but is it worth the headache of being a landlord? Not likely.
With the move under foot in most municipalities to encourage higher density and infill and brownfield development, buying a property in a redevelopment area is a good investment. Go in with no money down and assemble three or four properties in a row and market them as a single parcel for a 4 storey apartment.
That means learning about the planning processes in your municipality.