11-06-2015, 04:23 PM
(11-06-2015, 04:15 PM)ookpik Wrote:(11-06-2015, 03:47 PM)Owen Wrote: Call me crazy, but I like my investments to make me money every monthUnless your investments are all interest-bearing like savings accounts and GICs then you're indeed crazy
And even with interest-bearing investments you're losing money (earning power) if your net after-tax income is less than the rate of inflation.
Now with something like apartment rentals, even if in theory you're supposed to make money, in practice that will only work if the apartment stays rented, the tenant pays the rent, there are no unanticipated expenses, etc. You're always taking risks. Hopefully you get rewarding for taking them by way of higher rates of return.
Ha! My point was more that you won't convince me that something that is cash flow negative on a monthly basis is a good investment. As a rule of thumb I make sure they are at least cash flow break-even (with a bit of a buffer to cover those unanticipated expenses.) Overall it's more of a retirement plan than a day job (if it's break-even, the mortgage is being paid down.) Been at it for 10 yrs and up to 15 doors - so far so good