Great Analysis with real examples. Something else to consider is that the you can get tax credit for the interest paid on the mortgage, strata fees, insurance, property mgt fees etc,, which is a plus!
6:55 if the tenant pays the rent and it can take up to 4 month to get them out and lose another month to renovate and try to find a new tenant or maybe just lit the darn thing for the RTB is always against you - welcome to BC
I appreciate the thorough information. My husband and I are exploring investment property options in Edmonton because housing prices in Victoria, where we reside, are quite high.
Great analysis and coming across unbiased. Was surprised to see the rents so low for 2 beds, I know someone who bought a couple year old 1 bedroom in Langley and is getting $2200 plus utilities. Would have thought 2 beds would be going for $2700+ in Surrey.
Graeat comparison. I'm renting my twohouse (3bd + den) near guilfrod for 2700/month, I know it's cheaper than the market but the tenants have been there since 2017. Never had issues with them. Rent always paid on time.
Being cashflow negative =/= mean the investor is losing money............just means that instead of 1000/m of principal paydown coming from the renter, only 700/m is....just means that the rate of return for that investor is 100% going to principal paydown, which is still growing their equity. And also, because the monthly return is 'negative', that means new supply goes down and so promotes rental rate increases due to limited inventory. If monthly return was very positive then you would get a lot more new builds to compete and try and take share.
That depends what you are looking for. So you need a contractor to do things like flooring, drywall and paint? Or do you need staging and an extensive "to do" list of decluttering and clean up?
Ok smart guy what about the opportunity cost if the down payment. You cited 140k down payment. 5% GICs are plentiful right now. Here is what you would have if you plunked your 140k in boring GICs $178,679.42 Add the dummy investment tax of negative carry $400 a month adding $24000.00. Nit to mention any special assessments or maybe a new toilet and that condo which you had to deal with actual tenants just cost you conservatively over $60,000 to have the joy of being a landlord. What’s wrong with this? All of it.
6.6% average growth in Surrey since 1980, not on the 20% down, but the full purchase price. Leverage can be a great thing. Real Estate Investors love Time, Leverage and Growth.
@@SteveKarrasch Nice use of select data friend. Didn’t the height of the interest rate peak in 1981? Ohh right all we have seen is interest rate cuts since Paul Volker snuffed out viscous inflation peaking in 1981. I love it how you guys use select data to form a narrative. What say you if we see a run back to 20% rates like it was in 1981? How does that Surrey 600sft dump hold up under that scenario? That 6% appreciation you cite can be directly related to inflation and interest rate cuts. I know the sheep are very easily lead but don’t pander to anything but sheep to the cliff.
@@SteveKarrasch just have the honesty to say “ I’m a realtor. I make money whenever someone buys or sells. I don’t care what you do with the property” cheerleading is not a requirement of the job.
![ประสบการณ์ จ้าง Developer ที่ผมจะไม่มีวันลืม [ภาค1]](http://i.ytimg.com/vi/bzivN4KDg-k/mqdefault.jpg)
Great Analysis with real examples. Something else to consider is that the you can get tax credit for the interest paid on the mortgage, strata fees, insurance, property mgt fees etc,, which is a plus!
6:55 if the tenant pays the rent and it can take up to 4 month to get them out and lose another month to renovate and try to find a new tenant or maybe just lit the darn thing
for the RTB is always against you - welcome to BC
I appreciate the thorough information. My husband and I are exploring investment property options in Edmonton because housing prices in Victoria, where we reside, are quite high.
I looked at Edmonton and quickly looked away.
Great analysis and coming across unbiased. Was surprised to see the rents so low for 2 beds, I know someone who bought a couple year old 1 bedroom in Langley and is getting $2200 plus utilities. Would have thought 2 beds would be going for $2700+ in Surrey.
Graeat comparison. I'm renting my twohouse (3bd + den) near guilfrod for 2700/month, I know it's cheaper than the market but the tenants have been there since 2017. Never had issues with them. Rent always paid on time.
Love the practical math!
Do you own a condo in Surrey?
Being cashflow negative =/= mean the investor is losing money............just means that instead of 1000/m of principal paydown coming from the renter, only 700/m is....just means that the rate of return for that investor is 100% going to principal paydown, which is still growing their equity.
And also, because the monthly return is 'negative', that means new supply goes down and so promotes rental rate increases due to limited inventory. If monthly return was very positive then you would get a lot more new builds to compete and try and take share.
🙌
Maybe after maxing out my tfsa and rrsp the only time I will consider investment condo in Surrey.
Can you recommend companies that get your property ready for selling?
That depends what you are looking for. So you need a contractor to do things like flooring, drywall and paint? Or do you need staging and an extensive "to do" list of decluttering and clean up?
How about the aspect that expense (e.g interest expense, strata fee, insurance) are tax deductible
Expenses are tax deducible, and income tax will apply. But unfortunately I am not a tax specialist.
Buying GIC makes so much more sense if your don’t have 200+k saved up for investment.
Eye opening
👀
How does it feel being a landlord? Are deadbeat tenants that common?
Pro tip: Tenants with 800 credit scores are never deadbeats.
Now thats a shortcut!!!
@@SteveKarrasch problem is you can screen for a tenant with 800 but that person doesn't end up living there
Ok smart guy what about the opportunity cost if the down payment. You cited 140k down payment. 5% GICs are plentiful right now. Here is what you would have if you plunked your 140k in boring GICs
$178,679.42
Add the dummy investment tax of negative carry $400 a month adding $24000.00. Nit to mention any special assessments or maybe a new toilet and that condo which you had to deal with actual tenants just cost you conservatively over $60,000 to have the joy of being a landlord.
What’s wrong with this?
All of it.
6.6% average growth in Surrey since 1980, not on the 20% down, but the full purchase price. Leverage can be a great thing. Real Estate Investors love Time, Leverage and Growth.
@@SteveKarrasch
Nice use of select data friend. Didn’t the height of the interest rate peak in 1981? Ohh right all we have seen is interest rate cuts since Paul Volker snuffed out viscous inflation peaking in 1981. I love it how you guys use select data to form a narrative.
What say you if we see a run back to 20% rates like it was in 1981? How does that Surrey 600sft dump hold up under that scenario?
That 6% appreciation you cite can be directly related to inflation and interest rate cuts. I know the sheep are very easily lead but don’t pander to anything but sheep to the cliff.
Ya, you got me. I cherry picked 43 of the last 43 years of data.
@@SteveKarrasch just have the honesty to say “ I’m a realtor. I make money whenever someone buys or sells. I don’t care what you do with the property” cheerleading is not a requirement of the job.
Is watching my channel a requirement of your job?
When you sell a rental property, you will have capital gains taxes to be paid at that time.
In the tax year, yes.
Your sense of humor is drier than my wife's tuna casserole.
Thank you!
@Karrasch Real Properties not complaining, by the way 🤣
@@mgdubya27 Thanks. But if it does get too dry, like your wife's cooking... this channel also goes well with a little extra mayo. Enjoy!
Land transfer tax etc its impossible