[Travis Munroe]

To each their own however I quite enjoy condo's as investments/rental properties and I know of a number of people who feel the same! It can be difficult to find a good condo to rent out however when you do, they maintain themselves much easier than a SFH.
The numbers given are off by quite a bit. A $270,000 condo can rent for $1600+
R&M at $200 a month? I spend that a year on my investments. Part of what makes condo's attractive is the smaller sq footage giving less potential problems.
Everyone's situation is different however you do not need to put 20% down. If you want to own a few rental properties, consider buying at a lower % down (assuming 20% isnt a option) and then once you hit 20% equity you can move on and buy another place for 5% down. 20% can come real quick if you are a smart real estate investor and buy on numbers and not personal preference.

Originally Posted by ranchlandsselling

It's all a cost benefit/opportunity cost equation.

20% down, taxes, R&M, condo fees, insurance, time invested, lost rent (tenants flake out) less monthly rent.

Let's say you're spending $350k
You need $70k down
Condo fees of $250
Taxes of $150
Insurance $60
R&M $200 (yes, you do spend at least this much over time)
Mortgage $1,382

Total $2,042

So, according to CMHC's average 1 and 2 bedroom rents of $1,130 and $1,357 for downtown.... I'm thinking it's a bit of a waste of money. But, lets say your place is nicer and you get $1,500 per month. Great, you're still paying $500 per month over your mortgage or $6,000 per year. Sounds like an awful start. But let's say your place is really nice so it's $1,900 per month. Still, total headache and you've tied up $70k over the next 5 years to some ###### who likely doesn't give a crap about your place.

But, let's say you buy some shares of boardwalk and earn 3.4% over the next 12 months and not have to worry about managing a stupid apartment condo.
On top of returning a nice dividend boardwalk could also have some capital gains. $2,600 a year, or a permanent headache. That you're trapped in for 5 years. But wait, you're going to have to pay $10,000 to sell the place. vs. $9.99 for the boardwalk shares.

Boardwalk has also more than doubled over the last 5 years. I don't think buying a condo 5-years ago would have yielded anything close to that type of return.

Plenty of other options. The boardwalk one is just easy because I'd bet they're more competent property managers than the average person who decides to buy a condo. Also you get to enjoy the benefits of diversification, economies of scale, and experience.

Bunk did mention covering the carrying costs - which buying now, isn't easy. Nor does it account for and lack of capital growth in a time when many think housing prices are frothy, Canadian economy is looking weak and regardless that we're in a low rate environment with little risk of rates jumping just yet, we're still tied somewhat to the US bond market and whatever else the Government does to impact housing. I'd be a little reluctant jumping in hoping to have positive cash flow and capital gains.