Where is a good place to buy a rental property near Guelph?

JD_Inv wrote: ↑ Regina
Saskatoon

a4wagon wrote: ↑ London , ON, still very cheap for nice luxury homes, great community

User149646 wrote: ↑ Hello all! I am a beginner investor from Guelph looking to purchase a 2nd rental property. I am finding properties in Guelph hard to cash flow with 20% down and am looking for alternatives and maybe a different location that is not too far. I would appreciate any ideas or insights on something that might make sense and of course adds up number wise. Trying to learn more and would appreciate any ideas. Thank you!

fogetmylogin wrote: ↑ Cash flow is often inversely related to appreciation potential. Theoretically Real Estate is an investment like any other. It has a value based on its current and projected future income. We know of course this is a very loose correlation. A SFH home in GTA has no relation to its rental value. If you buy one as an investment you are assuming that historical and especially recent increases will continue to outpace inflation and other investments. The easy 5X leverage real estate allows routinely only exaggerates these returns.

I can't imagine anywhere near Guelph will have a pool or stable renters but has not seen such rapid appreciation you can put 20% down and be cash flow positive. London is a student town which traditionally have been good for cashflow but I understand that it has also seen a surge. You might find a deal on a pure student rental given some landlords must have vacancies this year but I looked in Kingston and was surprised this was not the case at all.

a4wagon wrote: ↑ don't buy homes for cashflow.... buy homes for appreciation value in 2..3.. 5 years 10 years even. You will make a lot more money that way. Money is so cheap now so let's say you loose 500$ a month after the taxes deductions all that. You loose 6K a year but if you home appreciaties even 50K a year (very low number, after capital gain taxes etc, just go with that number to be extra,super safe) you see how much cashflow you are positive just from that increase. On top of that add everything that is going into the principal, that's another let's say minimum 12K-15K a year depending on mortage size u have right..

Either way if u try to be on a montly cashflow I think you are loosing on the bigger picture. Just buy , rent and sell in year 2..3 and you`ll make good investment. I go for new builds, 1-2year builds modern looking that way I know my properties are hot no matter what hotter than the rest, even if I keep them empty I make money as long as they are in prestine conditions. People like the "WOW " factor, just like when you go to a fancy dealership, automatically you want that car rather than a used and abused one, and the difference in price is not really a lot between new and amazing vs old and outdated, etc.

flamez1000 wrote: ↑ This isn't investing, it's gambling. The average person in Ontario has this exact same mindset. Past performance is not an indicator of future performance. Just because we've had a run up in the real estate market in SW Ontario, doesn't mean it'll continue indefinitely. Remember 2017 with the new mortgage qualifying rules? People like you lost money selling when prices went down.

The goal should be to find a property that cash flows. Appreciation is the cherry on top. If you're doing it right, you make money with both, during the hold period with rent, and when selling with appreciation.

a4wagon wrote: ↑ don't buy homes for cashflow.... buy homes for appreciation value in 2..3.. 5 years 10 years even. You will make a lot more money that way. Money is so cheap now so let's say you loose 500$ a month after the taxes deductions all that. You loose 6K a year but if you home appreciaties even 50K a year (very low number, after capital gain taxes etc, just go with that number to be extra,super safe) you see how much cashflow you are positive just from that increase. On top of that add everything that is going into the principal, that's another let's say minimum 12K-15K a year depending on mortage size u have right..

Jdezmons wrote: ↑ Holy crap do people actually think like this?

a4wagon wrote: ↑ don't buy homes for cashflow.... buy homes for appreciation value in 2..3.. 5 years 10 years even. You will make a lot more money that way. Money is so cheap now so let's say you loose 500$ a month after the taxes deductions all that. You loose 6K a year but if you home appreciaties even 50K a year (very low number, after capital gain taxes etc, just go with that number to be extra,super safe) you see how much cashflow you are positive just from that increase. On top of that add everything that is going into the principal, that's another let's say minimum 12K-15K a year depending on mortage size u have right..

Either way if u try to be on a montly cashflow I think you are loosing on the bigger picture. Just buy , rent and sell in year 2..3 and you`ll make good investment. I go for new builds, 1-2year builds modern looking that way I know my properties are hot no matter what hotter than the rest, even if I keep them empty I make money as long as they are in prestine conditions. People like the "WOW " factor, just like when you go to a fancy dealership, automatically you want that car rather than a used and abused one, and the difference in price is not really a lot between new and amazing vs old and outdated, etc.