Should You Invest in Rental Real Estate Today?

Why we’re iffy on rental real estate right now. What do you think?

Clip from Episode #1 of the podcast with Preet Banerjee.

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  I’m looking at the real estate situation in Canada. Being a landlord and I’m just shaking my head and unlike previous decades where I’ve talked very favourably about investing in real estate for certain types of people, I now basically am throwing my arms up in the air and saying, don’t be a landlord, there’s other investment alternatives out there that I think are better. Too much hassle. The tenant problems are real and growing. The system is being gamed more. Where do you sit on that?

100 percent agree. I mean, you could not pay me to be a landlord, I mean, that’s the way it’s supposed to work, but it’s not even how it’s working today. I mean, if you went out today and got an investment property, you’re underwater if you’re charging market rents, right? And so your cashflow negative, hoping on appreciation from this point, which most people agree is at a standard deviation or two away from the long-term mean.

So, things are just not in your favour if you’re thinking about becoming a landlord now.