Real Estate Investing Canada
Is being a landlord for me?
If you're thinking about buying your first rental property you must know and understand the pros and cons of being a landlord.
It takes a decent amount of money and/or equity to purchase a property to rent out. There can be challenges coming up with the down payment although there are many options available to purchase the property.
A look at some of the Pros:
-Produces a steady stream of passive income every month (or week).
-You are able to pay less tax by taking advantage of the "write-offs" (Hold this in your name or in a corporate name)
-You drive by the property and can see the tangible asset you have just invested in (as opposed to paper investments)
-Dealing with tenants - this can be good or bad. You can build great professional relationships with your tenants and have positive experiences with being a landlord.
A look at some of the Cons:
-Dealing with tenants - this can be good or bad.
-You have to be prepared to deal with issues that pop up such as fixing a toilet to water leaking into an apartment below.
-It takes a substantial amount of money to finance your investment (large downpayment)
-Depending on the market you're in it can be difficult to sell your investment later on when you are ready to retire - a less liquid type of an investment compared to stocks & bonds.
