AKS
Senior Member
I am of the understanding that RE investing is purely a longterm investment for positive cashflow, not solely for capital gains, which starts minimally and after 25 years, when one is closer or in retirement, the property is paid in full and the net income from rent will be taxed at a lower marginal rate.
Well, if it's a long term investment, I would probably say it's more do-able for houses in the 905. Houses in Toronto are too expensive or cheaper ones need a lot of maintenance because they're very old. For condos, I don't think it's a good long term investment. Condos are best for capital gains (pre-construction), rent out a few years and sell for profit. (Assuming you have good tenants). I realize there's also possibility of net loss if you purchase too high or if tenant is bad and damages your property. So, buy low, rent for short term cash flow, and sell high after a few years.
For long term investment rental, houses are better I think. But same issue. If you have bad tenants, they could damage your property. Also, if the builder isn't very good, you may have to spend a lot fixing the house. I don't know how much rents in houses go for in the 905 though. Not sure if the earnings will cover all the costs. Downtown is easier to rent out in general, hence condos are better to play with.