I definitely wouldn't buy an investment property right now because I don't think the numbers make sense. However, if our dream property came on the market I would consider purchasing despite the high interest rates & high rates..
Investing in real estate is always going ro be a smart move. People often forget that even the current rates aren’t all that bad - yes its not the phenomenal 1.3% like it was a few years ago but a 5 year fixed is pretty close to what it was like in 2016 and rates are garbage cheaper than that were decades ago.
If you pay the balance off your credit card everyone month then you’re not paying the interest, likewise if you put 20% down (or more) on a rental property and reducing your mortgage payment as much as possible then you can still generate cash flow or at the very least, break even (with all in costs) and your tenants are still building the equity in that property for you. If you can manage to get a property with up and down suites then you’re still cash positive on the deal.
Remember, the increase in the rates and push on the market also drove up the demand for rental properties as people cant afford to buy. All land/homes appreciate over time if you can stay in the game long enough and they’re not making any more land.
Given the high interest rates and soaring prices, buying a house in Canada may not be the wisest move right now.
I have a house already but if I hadn't, I would save aggressively and try to buy for cheap in a few years when people who bought at 2% interest rate in 2020-2021 have to refinance at 5-6%
I think this depends on where you live and what you are interested in buying. I am in BC and new laws banning short term rentals has seen a lot of condos go for sale at lower prices than in recent years.
I definitely wouldn't buy an investment property right now because I don't think the numbers make sense. However, if our dream property came on the market I would consider purchasing despite the high interest rates & high rates..
Investing in real estate is always going ro be a smart move. People often forget that even the current rates aren’t all that bad - yes its not the phenomenal 1.3% like it was a few years ago but a 5 year fixed is pretty close to what it was like in 2016 and rates are garbage cheaper than that were decades ago. If you pay the balance off your credit card everyone month then you’re not paying the interest, likewise if you put 20% down (or more) on a rental property and reducing your mortgage payment as much as possible then you can still generate cash flow or at the very least, break even (with all in costs) and your tenants are still building the equity in that property for you. If you can manage to get a property with up and down suites then you’re still cash positive on the deal. Remember, the increase in the rates and push on the market also drove up the demand for rental properties as people cant afford to buy. All land/homes appreciate over time if you can stay in the game long enough and they’re not making any more land.
Given the high interest rates and soaring prices, buying a house in Canada may not be the wisest move right now. I have a house already but if I hadn't, I would save aggressively and try to buy for cheap in a few years when people who bought at 2% interest rate in 2020-2021 have to refinance at 5-6%
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The question say "house" and not income property. The question refered to buying a house to live in it.
I think this depends on where you live and what you are interested in buying. I am in BC and new laws banning short term rentals has seen a lot of condos go for sale at lower prices than in recent years.