listener

What would peoples preferences be in purchasing property to rent out and why?

I'm thinking specifically of London (UK) vs Toronto, in terms of:

- Property value appreciation/depreciation over the years
- Tenants
- Other costs other than initial purchase price e.g. stamp duty, Canadian equivalent

And anything else that comes to mind?

All input appreciated

Aviator

No way would I invest in rental properties anymore. One of the downsides is renters. In many municipalities out west, the landlord is responsible to make sure the property is not used as a grow op and is on the hook if it is.

BTJ

Part of my job involves auditing pensions accounts. As part of this we have to make sure the assumptions they use for future returns on their assets are sensible. Although things are obviously going to vary from property to property and the fact that our assumption includes management charges, but we generally expect the return on property to be around 6% p.a., whereas the return on equity (shares) is around 7% p.a.

I would personally not invest in property, especially given the work involved, but have a broad portfolio of equities. Ultimately, it depends what you want your money to do though, steady stream of income, or higher growth with greater variability?