Quote:
Originally Posted by 81MC
I’m assuming he’s referring to the long list of things rental property owners can claim:
Advertising
Insurance
Interest and bank charges
Office expenses
Professional fees (includes legal and accounting fees)
Management and administration fees
Repairs and maintenance
Salaries, wages, and benefits (including employer's contributions)
Property taxes
Travel
Utilities
Motor vehicle expenses
Other rental expenses
Prepaid expenses
Feels like a bit of catch 22 tbh. You absolutely need rentals, because no matter how low you want the barrier to entry into ownership to be, you will always be competing with people with more money. Like the 20 year old university students who happen to have their name in the ownership of multimillion dollar homes.
But, I really feel buying real estate just to make profit through rental needs to be stopped. Though I don’t think that’s a reality in a globalized world. ‘Foreign ownership’ is the easiest thing to get around so it would be making it harder for upper-middle class folks to make money while the wealthy have carte-blanche on property
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We should more heavily tax speculators for sure. For example people who've never lived in a property and just flip it, should be taxed at a high level.
However, as you say we do need rental stock. If someone chooses to use a rental property as a long term investment, I don't see an issue with that. Renting is far from merely passive income. It requires a fair bit of work and risk. It also creates a rental unit for a renter. If that person happens to make money over time, I don't see what the issue is.
Once again the issue is supply. The only reason people are making big profits off secondary investment units is because there isn't enough supply.