Real Estate

Best real estate for investment

  • Last Updated:
  • Dec 9th, 2018 4:50 pm
[OP]
Newbie
Sep 30, 2016
21 posts
6 upvotes

Best real estate for investment

What real estate is better for investment (buy and rent then):
- Detached House
- Semi-detached House
- Townhouse
- Apartment in Condominium
- Apartment building

In case of houses - better to rent whole unit or by rooms?

What province is the best for that?
29 replies
Sr. Member
May 3, 2013
716 posts
375 upvotes
Toronto
I would love to tell you, but then you'd be competing with my clients.

From experience, for province, try to stay within the province you are living in. It's much harder to manage a property out-of-province unless you spend $ to hire a property manager, which will eat into your profits and nullify any benefit from being in that province in the first place.
Deal Guru
Feb 22, 2011
11898 posts
15338 upvotes
Toronto
In my opinion a house that is split into a duplex or triplex. Many areas outside the core can get cashflow neutral or even positive with a 30 year amort. Long term I can't see houses not performing best. The supply of them in Toronto is actually declining while population increases. Not too often there is a pereptually decreasing supply of a highly saught after asset with growing demand. Just imagine 20 years from now, there will be way less houses as they get replaced for multiunit housing and population will be way higher. The thought of owning a house will be a dream except for the incredibly rich or those who inherit.
Deal Expert
User avatar
Aug 2, 2010
15196 posts
4987 upvotes
Here 'n There
Real estate that increases in value is the best investment.
Deal Guru
User avatar
Apr 4, 2001
11681 posts
532 upvotes
eonibm wrote: Real estate that increases in value is the best investment.
I disagree.
Banned
Aug 24, 2018
196 posts
119 upvotes
apartment building.


you ever see rents go down in a decent area?

get 15 year mortgage, and retire off rental income in 15 years.
Deal Guru
User avatar
Jun 26, 2005
10070 posts
1943 upvotes
Toronto
First define what is considered best in your view.

Earn tons of $$$ but with tons of work and issues?
Or
Earn medium $$ but with less work and issues?
Or
Earn small $ but with very few work and issues?
Deal Addict
Jun 7, 2017
1043 posts
832 upvotes
BC
If I were to invest in RE, I'd pick something which generates income rather than something which I hope would increase in value (i.e. speculation). "Hope" is not much of a plan.
I'd pick something low to moderately priced, and dense, e.g. a detached tri- or quad-plex. Near schools, transportation, with young to middle-aged workers. I would put no money in upgrades. Just clean and bright.
Deal Addict
Jul 27, 2017
2180 posts
949 upvotes
in an ideal world, a rental property that is as close to a 100% mortgaged/leveraged (gives you a walk-away position-maximum return on investment) with long term quality tenants, that covers all expenses & puts money in your pocket every month.

OP your question is too broad, it doesn't have enough information to be able to give you meaningful response

consider the following points, if possible reply to those points, then see if you can get more feedback

- what is your maximum purchase price budget?

- will you be able to put minimum 25% down?

- where do you live now - are you prepared to have an out of town or out of province income property?

- when vacant will you be able to continue to pay the mortgage & all expenses?

- what net net return on investment after all expenses are you expecting?

- do you want to buy/invest for income only or is this investment based on the property value increases over 10, 15, 25 years, which can be an unknown?

- can you be a landlord, have you any experience, do you know what it takes to do this, because it takes, work, time, effort, having to deal with all kinds of tenant issues?

An alternative investment may be a REIT ETF, lets you sleep at night, ones that can give you 5% or more return

another is MIC's , one of the TSX listed Mortgage investment Corp's, either common shares, preferred shares or convertible debentures. Returns can be anywhere from 4% to 8%
Jr. Member
Aug 27, 2018
175 posts
165 upvotes
drd207 wrote: What real estate is better for investment (buy and rent then):
- Detached House
- Semi-detached House
- Townhouse
- Apartment in Condominium
- Apartment building

In case of houses - better to rent whole unit or by rooms?

What province is the best for that?
The ultimate lazy landlord:

1. wants the most money for the least work
2. cannot even be bothered to think for themselves, asks others to do the work

Wealth appropriation. Landlords are not "investors".
Deal Addict
Jul 27, 2017
2180 posts
949 upvotes
georgist wrote: The ultimate lazy landlord:

1. wants the most money for the least work
2. cannot even be bothered to think for themselves, asks others to do the work

Wealth appropriation. Landlords are not "investors".
you were thinking Donald Trump & others like him when you posted that?
Deal Addict
Apr 5, 2017
1152 posts
973 upvotes
Edmonton, AB
Here's one scenario

26 y/o @ AB, Canada
Income: 50k/year at a job I don't mind going in to each day,
350k 1600sq-ft new build detached two story, 3 bed 2.5 bath
70k (20%) down, took 5 years of fairly aggressive saving, 3.59% 5 year fixed, $1410/mo
Roommate - 1 or 2, for now I have 1 confirmed who is also a coworker who is also a workout partner. We keep each other in line. Trust, respect, gains.
GF moving in: future consideration
Banned
Aug 24, 2018
196 posts
119 upvotes
georgist wrote: The ultimate lazy landlord:

1. wants the most money for the least work
2. cannot even be bothered to think for themselves, asks others to do the work

Wealth appropriation. Landlords are not "investors".
Au contraire Op is smart to ask questions to gain wealth.

It is the lazy, socialist renter who wants everything given to him that would mock OP.
Sr. Member
User avatar
Jan 21, 2017
962 posts
307 upvotes
tehwegz wrote: Here's one scenario

26 y/o @ AB, Canada
Income: 50k/year at a job I don't mind going in to each day,
350k 1600sq-ft new build detached two story, 3 bed 2.5 bath
70k (20%) down, took 5 years of fairly aggressive saving, 3.59% 5 year fixed, $1410/mo
Roommate - 1 or 2, for now I have 1 confirmed who is also a coworker who is also a workout partner. We keep each other in line. Trust, respect, gains.
GF moving in: future consideration
Pretty good life you got there bro
Jr. Member
Aug 27, 2018
175 posts
165 upvotes
otismod wrote: Au contraire Op is smart to ask questions to gain wealth.

It is the lazy, socialist renter who wants everything given to him that would mock OP.
Gain. But how? Two ways:

1. wealth creation (not this guy)

2. wealth appropriation (this guy)

This guy wants to use a supply shortage in a metro area to reach his hand into the pocket of a working family who can't buy due to high prices due to lazy rentiers like himself.
Penalty Box
User avatar
Aug 19, 2008
1925 posts
502 upvotes
Detached 3br bungalow, ideally with a separate garage which will also be rented out,

Renovate the basement into a 2br unit and get it legalized with the city.

DO NOT buy anything that won't cash flow with a 5% down payment. Doesn't matter if you're putting down 20% or 100% - - people make the mistake of "buying" cash flow - - calculate it based on a 5% down payment.
Licenced Realtor and P.Eng
Penalty Box
User avatar
Aug 19, 2008
1925 posts
502 upvotes
Be very careful trying to rent out individual rooms - - that makes it a rooming house.

And unless you'vd got zoning and registration as a rooming house you risk getting shut down/fined.
Licenced Realtor and P.Eng
[OP]
Newbie
Sep 30, 2016
21 posts
6 upvotes
rfdrfd wrote: First define what is considered best in your view.

Earn tons of $$$ but with tons of work and issues?
Or
Earn medium $$ but with less work and issues?
Or
Earn small $ but with very few work and issues?
Not sure yet, but I guess Earn small $ but with very few work and issues

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