Well it is pricey! But I worry about investing in the US just because I know how the political-cycle works... during elections the economy is always boosted! So sure consumer confidence, job growth, etc., may be up right now, what happens when the political-cycle comes to an end? I don't think that the economy is strong enough to sustain long-term growth, especially with the situation at present.
Start out in an area you know. Look around, do you see "Help Wanted" signs everywhere or are people afraid for their jobs? Do you live in Alberta where people want to be or PEI where they don't? is something coming down the pipe which would encourage people to move there (Hybernia?)? Then you have to look at the numbers. I found this to be an interesting article...
I'm not JustAGuy (without spaces).
Really ??? Just a Guy you already posted that link in this same thread.
Landlording is a business and to be in that business you need a house/condo/building to rent out. For any business to be sustainable you need to make money. If you are a landlord you need to make money on rental income. If you are a specuvestor you will make money when you sell your property. If the second is your business plan you are not really in the landlording business but rather the renting out until you can sell business.
In Toronto, it has been very difficult to find properties that you can rent out for a profit, in a lot of Canada it's the same situation. However as public sentiment has shifted and real estate is seen as lucre or the pot of gold at the end of the rainbow, people don't care. There is a desperation and it will not end well.
I really miss the professional old time landlords.
Landlord Rescue - Real Estate Blog
Do you ever read the postings, or just stick your foot in your mouth first. The first time I referenced the site in general as a resource which I quite like, the second was a specific article which talks about a property that the poster was evaluating which, for the market, looked like a good deal, but turned out could not cash flow.
Once again your bias is showing...other people do agree with you, and you don't even know it. Maybe you should read before commenting.
I'm not JustAGuy (without spaces).
Berubeland, do you believe that it is possible to maximize your properties value through rent increases? I subscribed to an online magazine recently where I get most of my information... someone recommended it so I could access some interesting articles written by property investors themselves, and the article basically said that one of the easiest ways for landlords to increase income, at no cost and little effort, is to ensure that they hand out their annual Rent Increase Notifications in a timely manner. Do you think that this is feasible in order to cover expenses?? here is the article: http://bestofourmarket.com/2012/10/m...ent-increases/
Unless you are the market (i.e. own several buildings in a specific desirable area), you are very limited in how much you can increase rent prices. Most places I know in Toronto have had flat rent prices for 5 years or more while the property value doubled, nothing the landlords can do about it.
Well i know that many property investors believe that the vast majority of rental units are subject to rent control, when, in reality, they are not- newly built condos are largely exempt from those limits.
I have made myself aware of the Residential Tenancies Act, especially in terms of the latitude I have to increase rents beyond rent control, if I were to go this way. But what I have noticed is that many small property investors are counting on the financing costs that rents can command. The rental market is coming to a point where this may not be feasible, especially given mortgage rates increases, it seems like a tricky business to get involved in.