Comments on: Investing in real estate with retirement in mind

By: J

Wed, 07 Dec 2022 14:48:36 +0000

“The latest statistics show fewer people than ever are failing to plan adequately for retirement. With more people being part of the ‘gig’ economy, planning for a comfortable retirement is more heavily weighted on the individual than ever before. ” … After bills are paid and groceries bought, there’s no money left for fun let alot saving for a future.

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By: Tony

Sat, 03 Dec 2022 04:40:27 +0000

So many variables. 1) how many buildings making 60k per year sell for 750k. Almost none. They sell for way more. And rarely fully rented making 60k/y. 2) how did the second downpayment happen a year later? Every one is limited by their downpayment. 3) yes there is money in having your tenants back the mortgage. To make all this happen, the price and the incomes have to match up. On paper, in these examples, they sound nice. In reality, the income is rarely greater than the mortgage these days. Leaving little for repairs and other expenses.

I agree with the logic. Incomes – expenses = cash flow + equity by having tenants pay back mortgage + appreciation with time. However In today’s interest rates, it is nearly impossible to find such products because the expenses are always greater than the incomes. The harder it is to afford a building, the harder it is to maintain it, let alone hold it for years to reap rewards.

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By: J

Fri, 02 Dec 2022 18:28:44 +0000

Some valuable comments here.
As a landlord of close to 40 years, I see holes in this: consider renewing mortgages at higher rates, vacancies of 25% (this has happened), and there seems to be no accounting for major expenses as new roofs, plumbing, flooring or major repairs.
Consider too, dealing with tenants in your senior years.
Governments have slanted all the rules in favour of tenants and are truly enjoy spending the tax dollars generated by the hard work and risks taken by “Mom & Pop”.

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By: Stewart

Fri, 02 Dec 2022 16:33:43 +0000

Have you considered the tax implications on the principle portion of the mortgage?

I have a property that carries itself with the mortgage payments however every year I have to ‘donate’ money to pay the income taxes on the property due to the principle portion ‘profit’ which is essentially hidden in the carrying cost.

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By: Mike

Fri, 02 Dec 2022 16:11:54 +0000

In reply to Marylon Hall Re/Max Grey Bruce Realty Inc.

Marylon
You are absolutely correct with regard to the ltb not being very effective. It just makes tenant selection crucial and you can still get a bad one. The other important item not mentioned is the tax aspect once you pay off the property and have few expenses. Government can take a good chuck of it every year. However, the concept is concrete but not for the timid or faint of heart.

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By: Marylon Hall Re/Max Grey Bruce Realty Inc

Fri, 02 Dec 2022 15:54:19 +0000

…Looks wonderful on paper. …..but, then you get a non paying tenant and rent doesn’t come in and tenants are wrecking your place —-Landlord and Tenant hasn’t scheduled hearing for us and it is now over a year and a half …..Investing in rentals with an undependable and ineffective LTB —is not a sure or stress free way to keep rent coming in. Many small time owners cannot handle bad renters and I find fewer people want to invest by being a landlord. Yes, we do need more rentals—but LTB needs to stand behind the good landlords.

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