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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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Rental properties can be done, but it's definitely work. I've bought some that pay for themselves+ lately, but if it's not something you're willing to put time into yourself you either need to 1) find a partner to manage everything for you or 2) not do it.
You could definitely borrow a bunch of money and put it in dividend paying stocks. That way you'd deduct the interest on the loan. Also, if you got a loan smaller than the loan you had before, you could set the amortization shorter and keep the payments the same. Might be a good way to end up with a sizable stock portfolio. This could also be used to invest in real estate on a more diversifed basis through REITs.