@Dakota
Single-family homes and townhouses are more likely to hold value … condos, not so much.
Dallas said:
@Dakota
Single-family homes and townhouses are more likely to hold value … condos, not so much.
remindme! 2 years
Dallas said:
@Dakota
Single-family homes and townhouses are more likely to hold value … condos, not so much.
remindme! 2 years
I’ll check in with you in 2 years on 2026-11-04 00:03:13 UTC to see how it turned out.
2 OTHERS CLICKED THIS LINK to send a PM to also be reminded and to reduce spam.
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@Dakota
There’s a massive inventory of condos right now, so I doubt they’ll go up anytime soon.
Uma said:
@Dakota
There’s a massive inventory of condos right now, so I doubt they’ll go up anytime soon.
Where are you getting that info?
Uma said:
@Dakota
There’s a massive inventory of condos right now, so I doubt they’ll go up anytime soon.
Where are you getting that info?
Between now and who knows … just saying, there’s a lot of them.
@Uma
You’re comparing profits on an investment to rental income … you’d have to look at both to get a clear picture.
@Uma
Thanks, I get what you’re saying. With rental income, I’m not making much. I just wonder if real estate will appreciate enough to give me that 5% over time.
Taylor said:
@Uma
Thanks, I get what you’re saying. With rental income, I’m not making much. I just wonder if real estate will appreciate enough to give me that 5% over time.
Have a look at this … I think the condo market has already hit its peak and might either drop or just stay flat for a while.
Taylor said:
@Uma
Thanks, I get what you’re saying. With rental income, I’m not making much. I just wonder if real estate will appreciate enough to give me that 5% over time.
Do you at least have some unrealized gain on the condo?
You might consider VEQT or XEQT instead … they’re more diversified outside just the US.
Jai said:
You might consider VEQT or XEQT instead … they’re more diversified outside just the US.
Yep, they’re solid options. Ben Felix has a good video on home market bias. I switched to *EQT portfolios for the simplicity – no more constant rebalancing.
Option 1 (renting it out):
$2600 rent - $717 (strata fees & taxes) = $1883/month
$1883 x 12 = $22,596/$600,000 = 3.76% return
Pros:
- The property value could go up.
Cons:
-
You might get hit with big assessments (like roof or window repairs, which can run anywhere from $5K to $50K).
-
You’d have to handle tenant issues.
-
Risk of dealing with people who don’t pay rent, and it can be costly to get them out.
Option 2 (sell and invest in VFV):
Assuming an 8% annual return and a 1% dividend rate, $600K could grow to about $1.37M in 10 years.
Pros:
-
Could double your money over time.
-
No headaches with tenants, repairs, or condo boards.
Cons:
- Market returns aren’t guaranteed.
If you like hands-on stuff, go with option 1. If you prefer something hands-off, option 2 might be better. Good luck!
@Nash
Option 2 is a lot like using leverage if you sell and invest it all. For option 1, you could rent it out and borrow against the equity for more investments. Cash damming is another tax strategy to consider.
@Nash
“Condo value could go up” vs. “S&P 500 could double your money” … might wanna keep it a bit more balanced.
VFV, no question.
The market’s all-time high doesn’t really matter here. Over time, the S&P generally rises.
Some things to consider:
- Downtown condo prices are low, and a lot of places are going below asking.
- VFV is fine for the long haul. If you have RRSP room, though, you might want to look at USD options like VOO or SPLG to save on taxes. VFV is better in non-registered accounts.
@Nissa
Got any resources on your second point? I’ve seen this mentioned, but I’d love to understand it better.
Teo said:
@Nissa
Got any resources on your second point? I’ve seen this mentioned, but I’d love to understand it better.
Quick summary: The US charges a 15% tax on dividends, but Canadians don’t pay this tax in RRSPs. VFV holds VOO, so buying VOO directly in an RRSP saves that 15%. Here’s a link with more details:
Option 2 might be risky. It’s kind of like trying to time both the stock and condo markets … both are long-term games.
Right now, stock prices are high, and condo prices are low, so you’d be selling low and buying high. Renting might be the better call, as long as you find a solid tenant.