For those with a few bucks and a dream, playing Monopoly with real-life rental properties could again become a pastime in 2024/25.
To set that stage, let's start with six truths that bolster the case for rental investing:
- Rents have soared double-digits to record highs — any higher and they'd need a space suit
- Mortgage rates should test gravity further in 2024, with at least four BoC cuts now fully priced in
- Lower rates stoke demand and appreciation; other things equal
- 7-figure population growth also fuels our extreme housing demand
- Almost no reputable economists are projecting high unemployment
- Despite government incentives, it may be years before builders are willing and able to build fast enough.
Knowing the above, countless potential property investors wonder if they should take the plunge and buy before the crowd. They know what prices can do when rates dive in a tight real estate market. And they know that the best way to build wealth in a country where ¾ of us say we're overtaxed is to amass tax-efficient capital gains.
So with that, let's unwrap this mystery box of a question, and sprinkle in some investing best practices while we're at it.