Quotes of the Day

The cap rate is the ratio between the net income and original price. You get this by dividing the net income by the property's purchase price and it's expressed as a percentage. I look for 10% and higher (if possible), which is difficult to find in Toronto. In the US, where I own additional properties, it's not as difficult to find; it's much more common and that's why I also like purchasing homes there, for the cash flow. [2021] - Shazia Virani

The only savings vehicle that has absolutely no tax liability is a TFSA. Your government pension--OAS or CPP--will be taxed. So, too, will your company pension plan. When you take money out of your RRSP or your RRIF, you will have to pay tax on that money. And even your unregistered assets will incur a tax liability on the return they earn or on their sale if you make a profit. [2013] - Gail Vaz-Oxlade

I recommend not risking more than 2 percent of your equity on any single trade. [2009] - Kathy Lien

When you are getting a mortgage, for example, you may wish to have a six-month open mortgage if you think interest rates are decreasing, and then convert it into a three- or five-year closed mortgage when you see that interest rates are heading up. [2006] - Douglas Gray

There are good associations out there for landlords (tip: join one!). There are also great books out there for landlords such as "Landlording in Canada", but here are a few points to consider: 1) Good credit; 2) Job security (steady jobs); 3) References (from employers and past landlords); 4) Long-term timeline (less wear and tear). You'll want to find a tenant who takes care of your investment and keeps it in good condition for you (hopefully very clean as well). Follow your gut instincts when picking tenants. If you have any doubts at all, it's not worth the risk. Once you secure the right tenant you'll want to increase the rent yearly where allowed.  [2021] - Shazia Virani