Hi, I would like to know your idea about buying a rental property with positive cash flow at the current market which is the sellers market and the prices are high.
I think in this market, all the predictions say the prices are going down!
You are in Ontario. No one knows what the market will do. People have been saying prices will go down, but they haven't. Interest rates are low and current sales are high along with demand. If you find a place where the numbers make sense as a rental, but it. If the market goes down in a few years, hold on to it until the market goes up.
You are in Ontario. No one knows what the market will do. People have been saying prices will go down, but they haven't. Interest rates are low and current sales are high along with demand. If you find a place where the numbers make sense as a rental, but it. If the market goes down in a few years, hold on to it until the market goes up.
@Ramin M. Welcome to BP. People have been saying the market is going down since 2016. As long as your underwriting is sound and the property is making money; whether we are at the peak or before the peak should not make any difference. If you are a buy and hold investor just enjoy the income stream and don't worry if the value goes up or down. The value only matters when you are cashing out or renegotiating a loan.
Market prediction is tough. I remember just 18 months ago at the start of COVID we were selling a package of homes for a client and we were getting calls from all over the country. Everyone was offering ~40% below listed price and they were listed fairly. Everyone though prices would crash last year due to COVID. Almost every caller said tenants won't be able to pay rent so we will take them off the sellers hands. Seller was patient and sold most at or close to asking price. And prices have gone up ever since.
Of course we know they will come back down at some point, the market is cyclical. But who knows when?
Thanks For sharing your insights. You are all right about the fact that the market is not predictable but there are some factors that affect the market.
Is there a sign regarding those factors that how the market will react?
I saw this lately but no idea how promising is it: