# Why be a landlord in Ontario?



## Four Pillars (Apr 5, 2009)

This is getting to be an old story, but as many here have said - why would anyone want to be a landlord in Ontario? 

http://www.thegridto.com/life/real-estate/space-invaders/


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## andrewf (Mar 1, 2010)

That's easy--capital appreciation. Condos go up by 10% a year--at 80% LTV, and with a tenant paying your mortgage interest+condo fee, you can make a low risk 50% return/year.


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## Four Pillars (Apr 5, 2009)

andrewf said:


> That's easy--capital appreciation. Condos go up by 10% a year--at 80% LTV, and with a tenant paying your mortgage interest+condo fee, you can make a low risk 50% return/year.


Forgot about that. 

Anyone want to go condo shopping with me tonight?


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## HaroldCrump (Jun 10, 2009)

Four Pillars said:


> Forgot about that.
> Anyone want to go condo shopping with me tonight?


I'm pretty sure andrewf is kidding/being sarcastic.

What's the name of that new book again that someone was pumping on the forum last week?


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## Four Pillars (Apr 5, 2009)

HaroldCrump said:


> I'm pretty sure andrewf is kidding/being sarcastic.


Pretty sure I was too.


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## MoneyGal (Apr 24, 2009)

Four Pillars said:


> Forgot about that.
> 
> Anyone want to go condo shopping with me tonight?


I'm not sure I'm ready to intertwine my finances with you in that way.


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## HaroldCrump (Jun 10, 2009)

MoneyGal said:


> I'm not sure I'm ready to intertwine my finances with you in that way.


Yeah, but, quoting is far worse


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## MoneyGal (Apr 24, 2009)

HaroldCrump said:


> Yeah, but, quoting is far worse


Now it's a three-way.


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## Four Pillars (Apr 5, 2009)

You guys are funny.


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## Berubeland (Sep 6, 2009)

The reason that people become landlords are considerable. 

- Inheritance
- Specuvesting
- Investing
- Hedging their bets
- Want to find the pot o' gold at the end of the rainbow

Being a landlord is a very valuable service, the part where you give people a decent safe home to live in. The part where the city expects a $600 basement to follow the same standards as a brand new condo is not fun, the Landlord & Tenant Board are now part of the Social Justice Umbrella of Tribunals when 90% of cases are about non payment of rent, they are just a ridiculous bunch of naive communists who are unwilling to pay for their own free thinking. 

It's still a valid business model just because of the capital appreciation...other than that forget it. It did also pay in the past to be a landlord but not in this market with the current prices.


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## Chris L (Nov 16, 2011)

This is a trick question...it's the dental plan coverage, silly!


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## jamesbe (May 8, 2010)

Working for me on a small scale, 60k appreciation on a 30k investment in 3 years and $200 a month income.

So far work load has been minor. I wouldn't buy again now unless i found a deal.


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## Sherlock (Apr 18, 2010)

I think a big reason is lack of knowledge when it comes to the markets. I'll use my parents as an example. When they came to Canada from eastern Europe, they had a vague idea of what a stock market was but they had no clue how to start investing in it, or what the difference between a stock and a bond was. Real estate on the other hand was familiar territory, so they became landlords. A lot of people regard investing in stocks or mutual funds as something complex and very risky, while investing in RE is something that they find easy to understand, and less risky because it's a physical building that you can see.


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