Good cash flow, but in a cooling market

[John Yeung]

I'm looking at the feasibility of buying my first property in Canada. In recent years, cities like Toronto and Vancouver have seen a rapid rise in property prices, and they're near the top of UBS' Global Real Estate Bubble Index. 

In this case, if I can find a property with positive monthly cash flow, but anticipate a decline some time in the future (not sure when), is the right move to take the deal or to wait? Both options seem to be justified logically 

Please advise

[Brent Coombs]

@John Yeung, sceptics among us may question whether any Toronto/Vancouver property, at the height of their property boom, WILL give "good cash flow", if all expenses are accounted for properly, and it's leveraged at the "normal" 70% LTV.

My guess is: you'll only get it to cash flow by putting down a MASSIVE cash deposit (ie. more than 30%). Right?

In which case, I/we will argue - what's the point of that? 

ie. What'll be your percentage return on your outlay? Please quote figures. (Remember, appreciation = unlikely!)

Welcome to BP. Thanks for asking. You've got us curious now...