Quote:
Originally Posted by Wormius
Is it right to start buying property in this market? I think any future purchases will not be paid off in the same zealousness of our house. If it was a rental property, and could sustain itself, that would be ideal. Has anybody had success or failure with that? Is there any profit before the property is paid for? Are there better areas in the city for that kind of thing? I guess close to c-trains is usually a good one, but anything else?
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Theres a lot there. Typically rental properties dont make profits for several years.
The rent will probably cover the mortgage, and for the first few years the tax losses will help generate a tax refund, but after that you start having to pay the mortgage, property taxes, maintenance and insurance, the interest will not longer cover the income and then you'll have to also pay taxes on the income.