Posted on: 03-09-15 17:26:17
A cardiologist died and was given an elaborate funeral attended by fellow physicians, family members, friends.
A huge heart covered in flowers stood behind the casket during the service. Following the eulogy, the heart opened, and the casket rolled inside. The heart then closed, sealing the doctor in the beautiful heart forever.
At that point, one of the mourners burst into laughter. When all eyes stared at him, he said, "I'm sorry, I was just thinking of my own funeral ....I'm a gynecologist."
I wanted to respond to your post in Is Canada under recession..... but it is locked. So responding here.
You are correct to say about the job losses and the plunge in housing prices, particularly in Calgary. As I understand talking to my friends, housing prices have dropped 10~15% and continue to do so. Hard to find buyers and the listing days are going up. Only the layoffs in big companies are reported in the newspapers but there are hundreds of small companies who depend on these big companies and the layoffs in these small companies are very significant and becoming very common.
I am not sure about the investment in rental properties and I really don’t understand the strategy. Some of my friends bought rental properties but unable to find tenants and end up paying mortgages for their investment properties also with the fear of losing their jobs, it is a nightmare.
As people say, this is a cycle repeats every 5 years and it was time since 2009. If you believe in oil prices going back to $100, it is certainly a good investment in RE. You can also consider investing in Suncor, CNRL, Crescent point energy as well looking at their present value.
By the way, what happens when a pipe fitter dies...
Yup for every 1 major job lost in the Oil or Automotive industry, 5-6 spinoff jobs down the chain with parts suppliers, subsidiaries, OEM manufacturers , distribution, logistics, sales, marketing, retail etc are also lost.
Also now these people eat out less and don't spend or buy much, so lot of fast food, coffee shop, restaurant, retail jobs are also lost.
Some Tim Hortons or MCDonalds guy now loses his job or his hours are cut, when the people laid off somewhere else now no longer drive through his window to order their morning coffee, Egg McMuffin, Breakfast sandwich etc 
Even if people don't lose their jobs, their hours and benefits are cut, they go from FT to PT quickly
Quote:
Originally posted by gktaurus
I am not sure about the investment in rental properties and I really don’t understand the strategy. Some of my friends bought rental properties but unable to find tenants and end up paying mortgages for their investment properties also with the fear of losing their jobs, it is a nightmare.
Toronto is different and renting is easier there. Most posts tend to be Toronto-centric in CD. But renting several properties is a hassle if you have a regular job. Any plumbing emergency during work hours at your tenants place and meanwhile you are in an important meeting..........
I know a guy who had a good job as an IT Admin in a large MNC. Left the job, joined his cousins and they now manage 70+ properties spread across Toronto, by renting out rooms to mainly east-Asian students, (Japanese, Korean, chinese etc), European students, desis and a few properties to Canadians.
HW36 is a multi millionaire 
in rental properties ( both equity and rent ) 
She is a ruthless businesswoman, her real name is Businesswoman36
GTA has only around 1 % rental vacancy, so easy to get tenants especially for your investor condos or basements. A bit harder to rent or lease the entire house though.
But due to the house/condo price increase most properties won't be cash positive. However your equity will keep on building and your mtg will keep on getting paid through the tenant.
So if you have a rental or investor condo and you are renting it out. Your monthly expense MTg , Property tax, Maintenance fees, utilities etc might be $ 1,700/month and the rent the tenant gives you will also be $ 1,700/month , so at the end of the month you won't have anything in hand i.e cash positive.
But your tentant is paying your MTG ( not you ) so 10-15 yrs from now you are sitting on a paid off condo, plus whatever capital appreciation comes with it 
..so you have more of an equity and not so much cash each month, in your pocket, when you are renting properties initially.
Assuming that the real estate will keep increasing for the next 10-15 years 
, assuming that the condo building does not need any major repairs, your tenants don't damage the property..etc..etc..
I just realised was posting in the have fun section 
Hiren
