@@rebeccahemick8368 The information will be Canadian specific, but the general process and high-level info would likely be similar regardless of where you live😊
I wish people would buy houses to live in them. It sucks how little properties are available to buy and how expensive rent is and how unfair some landlords are :( but I think the problem are mostly big investment firms though.
Our goal is definitely to buy a house for us to live in - until we’re able to afford to do that, we’d be keeping the same supply available by renting a property out (there’s people looking to rent either because they aren’t ready to buy yet, or don’t want to in the short-term). We agree that we definitely have a housing crisis perpetuated by investment firms / developers, and government policy is often on their side. Thank you for your comment 😊
Its supply and demand not investors, don't fall for the low IQ socialist bait. Why is there no supply? Too much regulation, too much taxation and too much government. And whats the plan? More regulation, more taxation and more government hahahaha. Good luck to future generations because the tough times haven't even started yet.
@@stephanddenthat’s nice to know! Some influencers I’ve seen as well in the finance sector just start buying a bunch of properties and rent them out specially on Airbnb. I don’t see that much wrong with owning one property, but when you own multiple specially in touristy places or poor places that are becoming very gentrified, it’s pretty sad the effects that it has in the community. But I’m glad you guys are coming from a more ethical point of view.
OMG Thank you for this video !! A lot of people would like to understand how to manage rental properties, how it affects us in terms of taxes etc… Buying a property is one of the biggest purchase in our lives, therefore your advices, Steph & Den, is super important to us. We want a lot of videos like this 😊
Legitimate question: at a time you are still opting to stay in a major city and rent for potential opportunities, does it make sense to purchase a rental property. It restricts your potential cashflow and adds an expense and liability that has to be fulfilled month to month even if you have no tenant? You forgo the capital gains exemption that makes property ownership desirable, as well as decreasing overall diversity of portfolio, which arguably could be somewhat covered by a REIT if you want increased exposure to real estate.
Those are some great points and questions! 😊 For us, this is a long term move - home ownership is something we want at some point in future. It’s arguably been one of the greatest wealth builders over the long term and this is a move that we feel will help us get there, given what the market looks like right now. We ideally want something where the numbers make sense - where we aren’t having to overly stretch our monthly cashflow in order to maintain this asset (also, hopefully there wouldn’t be too many month of vacancy at the property 🤞🏿🤞🏻)
@@stephandden All it takes is 1 tenant who doesn't pay rent and you're stuck in a long eviction process. Property doesn't have to be vacant to impact cash flow.
Anyone that knows about real estate knows that pretty much anything in Ontario is overpriced and wont cashflow. Turned into whats been happening in BC for a long time - just speculating on future appreciation. But considering southern Ontario is the most overpriced market in the world, this might be the worst market on earth hoping for appreciation. The real estate game has come and gone for most of Canada. Either move to the prairies, or out east, in which you pay higher taxes to get something that makes sense, or just avoid it and find another asset. Canadians obsession with real estate is crazy.
Exciting! I would just warn that being a landlord in Ontario can be challenging if your tenant is not great, and the hardest part is getting tenants to leave, even for legit re-possession! Services like FrontLobby might make things a bit easier.
Yeah I was just gonna say the same. I’m from New York but I can only imagine things to be similar or even worse in Toronto given how liberal Canada is. Being a landlord is a far cry from a walk in the park and I personally would rather invest in a REIT fund than in a rental property myself. I just decided to become a landlord given my circumstances but it’s no fun.
This is SUCH a good idea for a series!!! So many people will benefit from this especially with how in depth you are explaining the details. Awesome work as always and good luck on your journey 🎉
That's awesome! If you haven't already, you should look into DCSR loans. They loan to real estate investors based on the potential of the property to generate revenue, not the income you make. It's primarily what we've used in our business! Excited to see where you all go with this :)
Can you please share more about the big picture - how many years will you have to own the investment property in order to use it as equity/leverage? Etc
Big picture is getting into the market as soon as possible - we’ll talk more about this in this series of videos coming soon 😊. We see ourselves continuing to rent for years to come, but we also see the value in leveraging one asset to get something that’s eventually ours in today’s market.
Loving this series already. Y’all are providing information which is quite challenging for many to educate themselves who are without experience. So thank you two!
I'd suggest looking into Durham region and more specifically Oshawa, lots of hidden gem there that cashflow positive and very good potential in term of growth there
Looking forward to your approach in the rest of this series. I am very curious why you didn't choose to purchase a condo to live in yourselves. You mentioned wanting to stay downtown and the numbers will be important for context in future videos... but a 1bdrm could address your needs (unless you're renting much bigger) and also serve as strong rental investment for the future when you move out? Most condo investments in TO are cash-flow negative unless you put a very significant downpayment. It's easier to be cash-positve outside of the GTA but that's another story too. Well guess I just wrote a long-winded comment to say I'll stay tuned!
I'm just curious to know, why not buy a condo to live in? That way, you know exactly who your tenants are. You wouldn't risk scenarios like tenants not paying their rent or damaging the unit. Also, the monthly costs of a mortgage, property tax and condo fees in the GTA is often more than what you can charge for rent
The numbers don’t make sense in the GTA, which is why we likely wouldn’t buy a property within the GTA. Also, if we were to purchase a condo in the city to live in, the numbers wouldn’t make sense in that case either (we would be betting on appreciation and paying a lot more for that). As of right now, we can rent comfortably while investing our money in the market given that the cost of renting is much cheaper than the carrying cost of buying for us. 😊
make sure your rent collected is enough to cover your mortgage payments and all the outgoings for the property, otherwise it’s totally not worth it to buy a property at peak and when interest rates is high sky, plus property won’t appreciate as much as in the stock market. We are in Sydney and I know many of the owners are crying out because they borrowed huge amount of money to buy investment properties and now properties have decreased its value and the rent they have collected doesn’t cover their mortgage and increasing expenses!
This is a great series/idea! Especially in today’s market. One thing I want to emphasize is that people who work for a company are able to get better financing than people who have their own business (at least in America). In other words, do not quit your day job!!!!
Congrats! And i hope you will be pre approve for a nice amount as you have the same issue as me in Vancouver, hom eprices are crazy high!!! Good luck !
I'm in the exact same situation, began speaking to mortgage brokers and such. Are you guys concerned at all about not being able to benefit from the RRSP withdrawal and land transfer tax rebates that you get as a first time home buyer since it sounds like you will not be living in the home.
hey guys! ive thought about doing something similar to this myself in the past. From my understanding dont you lose the capital gains exemption on sale if you do this or is there some option if you decide to move into the house down the road?
Yes, you would lose the capital gains exemption if it’s purchased as an investment property. On the other hand, you can purchase it as a primary residence, live there for a year and then rent it out after. We’ll share more on our thought process in this series of videos though 😊
I cannot stand brokers and realtors, so, I purchased a brand new home. The tricky part was the mortgage approval. When you are a contractor the lenders ask you for 3 years back business income proof (T2). I only had 2 years. Not to mention, I was trying to buy a home as a single earner. So, I switched to permanent employment, I became an employee and I got away by providing only one monthly salary proof! O tempora, o mores!
I’m also on that route too. A one bed condo in the nearby NJ downtown close to nyc is already 700k already so no hope for NYC. I am waiting for rate to be lower to buy condo in places that don’t have a lot increases in the past years
You’d have to actually buy the house before quitting your job too, in that case (the pre approval is step one, but you shouldn’t make major changes to your income, or make other major purchases, before actually buying the home)! It’s all about what path you want to or choose to take 😊
TBH, there other classes of assets you can invest your money into. RE is NOT the only way to grow your equity. RE in Canada is doomed, and a lot of new comers have gone the same beaten path that you both are trying to tred on. Not to be pessimistic, but RE in current times is not worth the risk , highly inflated prices, if you can continue to rent. You don't want to loose your equity in the first RE investment you make. Maybe try looking up S&P 500. Good luck!
The housing crisis has happened due there not being enough supply to meet the demand of people who live in Canada. In our opinion, those contributing to it would be a lack of government policies and predatory development (along with other issues)- not people buying an individual property in an attempt to enter this crazy market.
![เบิ้ล ปทุมราช - สาวสอง ( มีมี่ของอ้าย ) ft. ตาต้า,ต้องเต [OFFICIAL MV]](http://i.ytimg.com/vi/mqlMjnP08XI/mqdefault.jpg)
Download the True North Mortgage First-Time Home Buyer's Guide here: www.truenorthmortgage.ca/stephandden
Congratulations on what is called RentVesting and being risk-adjusted.
Is guide only for those who live in Canada ?
Love your video energy and entrepreneurial insights, would love to do a collaboration video in the near future. Thanks 🙏Dan Belsky
@@rebeccahemick8368 The information will be Canadian specific, but the general process and high-level info would likely be similar regardless of where you live😊
I wish people would buy houses to live in them. It sucks how little properties are available to buy and how expensive rent is and how unfair some landlords are :( but I think the problem are mostly big investment firms though.
Rental properties help people. People without good credit or good jobs cannot buy a house.
That’s why we need public housing
Our goal is definitely to buy a house for us to live in - until we’re able to afford to do that, we’d be keeping the same supply available by renting a property out (there’s people looking to rent either because they aren’t ready to buy yet, or don’t want to in the short-term).
We agree that we definitely have a housing crisis perpetuated by investment firms / developers, and government policy is often on their side.
Thank you for your comment 😊
Its supply and demand not investors, don't fall for the low IQ socialist bait.
Why is there no supply? Too much regulation, too much taxation and too much government. And whats the plan? More regulation, more taxation and more government hahahaha.
Good luck to future generations because the tough times haven't even started yet.
@@stephanddenthat’s nice to know! Some influencers I’ve seen as well in the finance sector just start buying a bunch of properties and rent them out specially on Airbnb. I don’t see that much wrong with owning one property, but when you own multiple specially in touristy places or poor places that are becoming very gentrified, it’s pretty sad the effects that it has in the community. But I’m glad you guys are coming from a more ethical point of view.
Why not? You two are making so much money right 👍🏼
OMG Thank you for this video !!
A lot of people would like to understand how to manage rental properties, how it affects us in terms of taxes etc…
Buying a property is one of the biggest purchase in our lives, therefore your advices, Steph & Den, is super important to us.
We want a lot of videos like this 😊
Yay, we're happy that you're excited for these videos! More to come 😊🥳
Legitimate question: at a time you are still opting to stay in a major city and rent for potential opportunities, does it make sense to purchase a rental property. It restricts your potential cashflow and adds an expense and liability that has to be fulfilled month to month even if you have no tenant?
You forgo the capital gains exemption that makes property ownership desirable, as well as decreasing overall diversity of portfolio, which arguably could be somewhat covered by a REIT if you want increased exposure to real estate.
Those are some great points and questions! 😊 For us, this is a long term move - home ownership is something we want at some point in future. It’s arguably been one of the greatest wealth builders over the long term and this is a move that we feel will help us get there, given what the market looks like right now.
We ideally want something where the numbers make sense - where we aren’t having to overly stretch our monthly cashflow in order to maintain this asset (also, hopefully there wouldn’t be too many month of vacancy at the property 🤞🏿🤞🏻)
@@stephandden All it takes is 1 tenant who doesn't pay rent and you're stuck in a long eviction process. Property doesn't have to be vacant to impact cash flow.
Anyone that knows about real estate knows that pretty much anything in Ontario is overpriced and wont cashflow. Turned into whats been happening in BC for a long time - just speculating on future appreciation. But considering southern Ontario is the most overpriced market in the world, this might be the worst market on earth hoping for appreciation. The real estate game has come and gone for most of Canada. Either move to the prairies, or out east, in which you pay higher taxes to get something that makes sense, or just avoid it and find another asset. Canadians obsession with real estate is crazy.
Exciting! I would just warn that being a landlord in Ontario can be challenging if your tenant is not great, and the hardest part is getting tenants to leave, even for legit re-possession! Services like FrontLobby might make things a bit easier.
Yeah I was just gonna say the same. I’m from New York but I can only imagine things to be similar or even worse in Toronto given how liberal Canada is. Being a landlord is a far cry from a walk in the park and I personally would rather invest in a REIT fund than in a rental property myself. I just decided to become a landlord given my circumstances but it’s no fun.
It will be interesting to see where you guys end up buying if not in the GTA. All the best!
Thank you! 😊
Good luck on your journey! Hope you reach your goals with smooth sailing.
Thank you! We appreciate that 😊
This is SUCH a good idea for a series!!! So many people will benefit from this especially with how in depth you are explaining the details. Awesome work as always and good luck on your journey 🎉
Thank you so much! 🙏🏿🙏🏻
That's awesome! If you haven't already, you should look into DCSR loans. They loan to real estate investors based on the potential of the property to generate revenue, not the income you make. It's primarily what we've used in our business! Excited to see where you all go with this :)
Thanks so much, Liz! + thanks for the suggestion - we'll definitely look into it 😊
Best thing you can do!! Renting is paying for someone else's investment. True North Mortgage was great with helping me with my properties!!
Amazing, we love to hear that! 😊
Can you please share more about the big picture - how many years will you have to own the investment property in order to use it as equity/leverage? Etc
Big picture is getting into the market as soon as possible - we’ll talk more about this in this series of videos coming soon 😊.
We see ourselves continuing to rent for years to come, but we also see the value in leveraging one asset to get something that’s eventually ours in today’s market.
Loving this series already. Y’all are providing information which is quite challenging for many to educate themselves who are without experience. So thank you two!
🙏🏿🙌🏻 thank you so much!
I'd suggest looking into Durham region and more specifically Oshawa, lots of hidden gem there that cashflow positive and very good potential in term of growth there
Thanks for this suggestion! 😊
looking forward to watching this series. keep up the great work.
Thanks so much 😊
Looking forward to your approach in the rest of this series. I am very curious why you didn't choose to purchase a condo to live in yourselves. You mentioned wanting to stay downtown and the numbers will be important for context in future videos... but a 1bdrm could address your needs (unless you're renting much bigger) and also serve as strong rental investment for the future when you move out?
Most condo investments in TO are cash-flow negative unless you put a very significant downpayment. It's easier to be cash-positve outside of the GTA but that's another story too. Well guess I just wrote a long-winded comment to say I'll stay tuned!
I'm just curious to know, why not buy a condo to live in? That way, you know exactly who your tenants are. You wouldn't risk scenarios like tenants not paying their rent or damaging the unit. Also, the monthly costs of a mortgage, property tax and condo fees in the GTA is often more than what you can charge for rent
The numbers don’t make sense in the GTA, which is why we likely wouldn’t buy a property within the GTA. Also, if we were to purchase a condo in the city to live in, the numbers wouldn’t make sense in that case either (we would be betting on appreciation and paying a lot more for that). As of right now, we can rent comfortably while investing our money in the market given that the cost of renting is much cheaper than the carrying cost of buying for us. 😊
The first one is the most special, but sets the tone for your future real estate portfolio. Stay up
🙏🏿🙏🏻 thank you!!
Sydney is also expensive as well. Houses out of the city area is at least a few million!
make sure your rent collected is enough to cover your mortgage payments and all the outgoings for the property, otherwise it’s totally not worth it to buy a property at peak and when interest rates is high sky, plus property won’t appreciate as much as in the stock market. We are in Sydney and I know many of the owners are crying out because they borrowed huge amount of money to buy investment properties and now properties have decreased its value and the rent they have collected doesn’t cover their mortgage and increasing expenses!
This is a great series/idea! Especially in today’s market.
One thing I want to emphasize is that people who work for a company are able to get better financing than people who have their own business (at least in America). In other words, do not quit your day job!!!!
Thank you! 😊
Would love to see the breakdown of your numbers when you find a property to purchase.
We definitely aim to share that in future videos 😊
Congrats! And i hope you will be pre approve for a nice amount as you have the same issue as me in Vancouver, hom eprices are crazy high!!! Good luck !
Thanks so much! 🙌🏿🙌🏻
I'm in the exact same situation, began speaking to mortgage brokers and such. Are you guys concerned at all about not being able to benefit from the RRSP withdrawal and land transfer tax rebates that you get as a first time home buyer since it sounds like you will not be living in the home.
Another question...
If you had $35,000 and wanted to buy your first property about a year from now, how would you invest that $35,000?
Congratulations! I would love to see more videos about how you manage finances in your business. Can you walk us through this as well? :)
The NYC area is very similar.... i completely understand and hope your real estate goals happen! Rooting for you guys!
Thanks so much! 🙏🏿🫶🏻
That sweatshirt looks super comfy ☺️. Good luck on your home buying process!
Thank you so much! 😊
I was on the market back in 2021...
horrible experience -
brb... gonna stock up on popcorn 🍿
😂😂
Congratulations 🎉
Thank you 😊
Congratulations!!!!!!
Thank you! 😊
hey guys! ive thought about doing something similar to this myself in the past. From my understanding dont you lose the capital gains exemption on sale if you do this or is there some option if you decide to move into the house down the road?
Yes, you would lose the capital gains exemption if it’s purchased as an investment property. On the other hand, you can purchase it as a primary residence, live there for a year and then rent it out after. We’ll share more on our thought process in this series of videos though 😊
@@stephandden Yes, this sounds like a more sound method than foregoing the benefits of owning a primary residence as your first property
@@stephanddenThat's great thanks guys!
yah toronto pricing is so crazy rn im so proud of u guys
Thank you! 😊
I cannot stand brokers and realtors, so, I purchased a brand new home.
The tricky part was the mortgage approval. When you are a contractor the lenders ask you for 3 years back business income proof (T2). I only had 2 years. Not to mention, I was trying to buy a home as a single earner.
So, I switched to permanent employment, I became an employee and I got away by providing only one monthly salary proof!
O tempora, o mores!
Looking forward to seeing more videos on this! I'd love to buy a home in the GTA, but that won't happen in a LONG time. Lol!
More to come! And we feel you there! 🥲
Congrats. So exciting for you two
Thank you! We’re excited to see how it goes! 😊
Congratulations guys ❤
Thank you! 😊
Congratulations 🎉 🎉
Thank you! 😊
Congratulations Steph and Den!
🙏🏿🙏🏻 thank you!
Great video! Coming back to shop in Sudbury???
Congrats guys 🩵
Thank you! 🙏🏿🙏🏻
More home buying content please!!
🙏🏿🙌🏻 more coming soon!!
Have you done the math on the ROI?
It's not looking good to buy at these prices
I’m also on that route too. A one bed condo in the nearby NJ downtown close to nyc is already 700k already so no hope for NYC. I am waiting for rate to be lower to buy condo in places that don’t have a lot increases in the past years
So expensive! That sounds like a good plan 😊
Wow you're officially billionaires 🎉👏👏👏
🤔
Wondering if the condo you guys are renting right now is rent controlled?
It is 😊
Ahh I'm in a similar boat, good luck out there
Thank you! You too 😊
Its a shame (sad but true) that even if you win a million dollars lottery you cannot buy a home either in Toronto or Vancouver.
if in ontario Canada, then good Goodluck...
Are you guys married? Aren’t you guys worried of a potential breakup and the implications that might happen? Just curious
We’re not! There are agreements you can have in place (like a cohabitation agreement) that help in case that happens 😊
Marriage is no guarantee these days
Hi Den, love the beige shirt. Where's it from?
Thank you! 🙏🏿 It’s from Zara!
I hope to find someone who will rent my house for a year for $2,400. It is a small house and the roof can see the Nile
Sounds like it’s better to get pre approval before quitting jobs
You’d have to actually buy the house before quitting your job too, in that case (the pre approval is step one, but you shouldn’t make major changes to your income, or make other major purchases, before actually buying the home)! It’s all about what path you want to or choose to take 😊
A mortgage broker is a must. We saved a lot of on interest thanks to using one.
That's great to hear 😊
TBH, there other classes of assets you can invest your money into. RE is NOT the only way to grow your equity. RE in Canada is doomed, and a lot of new comers have gone the same beaten path that you both are trying to tred on. Not to be pessimistic, but RE in current times is not worth the risk , highly inflated prices, if you can continue to rent. You don't want to loose your equity in the first RE investment you make. Maybe try looking up S&P 500. Good luck!
You’re right, it’s not the only asset class. Thats why we plan to continue renting, and investing in the market 😊
IF YOU KIDS WAIT 2 YEARS THE ENTIRE REALISTAT SECTOR IS GOING TO CRASH. SAVE CASH. BUY SILVER. GOLD MINORS.
Doubt your investment property will appreciate much for a while
That’s okay - we don’t plan on purchasing our primary residence for a while.
HFSP
Thank you 😊
Canada property is ridiculous and is the cause of low productivity in Canada.
We're in a housing crisis....you don't care that you're contributing to it?
The housing crisis has happened due there not being enough supply to meet the demand of people who live in Canada. In our opinion, those contributing to it would be a lack of government policies and predatory development (along with other issues)- not people buying an individual property in an attempt to enter this crazy market.
They’re actually helping by providing a rental property for someone to live in
Don't get it twisted
I live in Quebec and I realise Toronto area is like double the price of houses in Quebec 🥹 and people here thinks our house is too expensive😅