Hey everyone! I am looking for some advice on when buying a rental is a good idea.
I currently live in Alberta, Canada and have the opportunity to get my first rental property that already has tenants.
My worry is that our market right now is very inflated and I've been following a few people that are suggesting there will be a big correction coming within the next couple years. Is it better to hold off and wait until the correction comes or invest and ride it out?
Some people have been saying that the real estate market has been due for a big correction for the last few years. Any of these people who have chosen to sit on the sidelines and wait for prices to decline have missed huge double digit appreciation numbers in almost all real estate markets over the last couple of years. With the current housing shortage, I think it is unlikely that there is a housing crash anytime soon, but I agree that it is always possible no matter how unexpected.
If you find a good deal that has some cashflow, then there is no reason to worry about a crash because you could just ride it out anyway. How would it affect you if you kept collecting rent each month? It is important to account for any unexpected costs that arise and set money aside for vacancy as well, but if you do this and the rent you collect covers all expenses associated with the property, then you have nothing to worry about.