Quote:
Originally Posted by aigel
The returns may not be great, but a piece of property is a hedge against inflation and should be part of your portfolio IF you can have other assets as well. If you have to bend over backwards and overstretch to make it happen and it is your only asset, then I'd either sell or live in the old house for another 5 years and build up your portfolio before making the move.
G
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This is sound advice. Be aware of the rate of return on investment and in our case with our rented condo it is only 2% after deducting everything. I believe that a house is a better investment for rental.Why? With a house there are no special assessments and no condo fees which you have no control over with a condo.
Kind of tenants is important. Check references. Write up a lease agreement that covers everything(eg. max no. of occupants etc etc).
Our condo has gone down in value by about 25% since we bought it 7 years ago.
Second set of tenants now who are very self sufficient.
Think of real estate rental as diversification. You should have no debt by the time you retire. If you get bad tenants your life can be hell. We have good tenants and I hardly give them any thought. I was Pres. on our condo board for a while.
I don't like the politics that goes on though. Would not want to live in that building as there are too many complainers and whiners(over 50 yo). Be firm but fair with your tenants.
I have learned a lot over the 7 years of ownership/being a landlord.