Income Properties Are Trending, But Is Landlord Life for You?
If the thought of investing your money into brick and mortar—or perhaps some stylishly-painted siding—excites you, join the club.
Investing in real estate has long been one of Canadians' favourite ways to grow their wealth. According to a poll by CIBC, 15% of Canadian homeowners already earn some rental income, while another 11% aspire to it. What's more, over a third of current homeowners (37%) say they'd look for a property with income potential if they were buying a new home.1
Baby boomers over the age of 55 are especially likely to own an income property these days.2 But according to Statistics Canada, a growing share of millennials in their 30s and 40s have also cashed in on the real estate investment trend.3 The Bank of Canada estimates that at least 20% of newly purchased homes are now owned by individual investors, up from 18% in 2015.4
Canadians have historically embraced real estate, in part, because of the strong return on investment it can offer—especially to investors willing to stick with a property over time. It's also a popular way to hedge against inflation since both rental income and property values tend to rise in tandem with overall prices.5
But how do you know if you’re well-suited to take advantage of real estate investment opportunities? Here are three signs that owning a rental property could be right for you.
- YOU'RE A HOMEBUYER WHO WANTS HELP COVERING THE MORTGAGE
If you're looking for a creative way to buy a home without overspending, “house hacking” could be the answer. Increasingly popular with first-time homebuyers and budget-conscious investors, house hacking simply means buying a home that you intend to live in while renting out a portion of it to one or more tenants.6
In addition to padding your monthly income, buying a home with a self-contained income suite can make it easier for you to qualify for a mortgage. If a secondary...
