Did you ever figure out your rate of return....

[recycled sixtie]

on a house or condo you bought and rented out? I was disturbed how little my ror is and it works out to about 2% and there are no income taxes to pay because there are enough expenses and CCA to prevent paying taxes. 2% is slightly above what I can get for bank deposits. The value of our condo is down about 30% from what we paid for it. My daughter's sage advice is to continue renting it out. I figured my ror as follows: total expenses divided by rent X purchase price divided by 1. Interest expense would be added to total expenses if you have a mortage. Your comments re. ror calc. are welcome. Also I think that this is a good tool if you are thinking of buying rental property to see if it makes sense financially. What ror do you get on your rental property?

[Rick Lee]

I would have a stroke if I bothered with this. I know I'm $300 a month negative on rent vs. mortgage, even when everything goes just right and tenant doesn't call me to report broken stuff. Between other carrying costs and depreciation, I'm still negative because our income makes us eligible to only write off 50% of passive losses. And I'm underwater with the rental house too. I can't wait to quit the landlord business.

[RWebb]

in the US, depreciation is a strong tax advantage for those who own real property & applies even when the real estate is appreciating

check with a savy accountant in Canada, and make sure the province and locality of you and the property are taken into account