Is real estate a good investment?
Real estate is traditionally a sound and profitable investment offering both rental income and capital gains. If you're thinking about acquiring an income property, we've got some ideas for you.
Being a Landlord
How do I start being a landlord?
Whether you have a small apartment in your basement or own a large high-rise, as a landlord you are subject to rules and regulations that define your responsibilities and what you can and cannot do.
Since each province and territory has its own landlord and tenant legislation, make sure you know the rules and regulations that apply to your province (there are some surprising differences). The collection of Provincial and Territorial Fact Sheets is great reference material to get you started. You can also look for books, booklets, and guides published for new landlords (since legislation can change, make sure that the publication is up to date).
It is also advisable to get some expert legal advice. This is a specialized area of law, so make sure you consult a specialist.
Financing
What residential rental properties qualify for financing?
Most financial institutions will finance the following investment property purchases:
- Rental properties, such as apartment buildings
- Condominiums
- Retirement homes
- Nursing homes
- Mixed-use properties, such as apartments with commercial spaces
- Other forms of co-ownership (such as co-op, co-housing, undivided interest, and life lease)
The Canada Mortgage and Housing Corporation (CMHC) is Canada's leading provider of mortgage loan insurance for multi-unit residential buildings. With CMHC-insured loans, borrowers can obtain mortgage financing up to 85% of the value of the property without a maximum dollar amount and therefore reduce the amount of equity needed.
