this post was submitted on 22 Aug 2024
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Canada Housing
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This is a community to discuss the housing crisis in Canada.
All so Canadians can find a decent home to live in.
Racism is still absolutely prohibited, but you are welcome to debate population growth, immigration rate, foreign home buyers, and the merits of single family homes or the green zone.
A merge of r/canadahousing and r/canadahousing2 for those coming from Reddit.
Bits of the sidebar and logo taken from those subs and will be going through a slight revision as things get settled.
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Now I don't know Canadian taxes but just out of interest I investigated once what would happen if I rented out my house (it's still newly under mortgage so I can't but just to see what would happen.) I see some of my neighbors rent out theirs from for about this amount, 2500 euros.
After taxes in my part of the world I would retain just under 18000 euros in profit per year, which is a return on investment (~500k) of about 3.5% And this is not counting any repairs or maintenance the house will invariably need.
It's a crazy amount of rent for the renter but it's at best a poor return on investment for me, and if I'm a good landlord that actively maintains the place even worse. Sticking the money into even a so-so savings account will give a better return without any headache.
Having rented for most of my life (until very recently) I feel your pain but the real problem is the insane cost of real estate.
Well, yeah. You invest into real estate for it to pay off after 20 years and then generate you pure profit. The problem is that at that time, maintaining a 20 yo property isn't cheap either, especially with remodels in between that need to happen to keep it looking good and functional.