Originally Posted by Hehe
Not an investment advise, just my $0.02.
First thing to consider, you can't kick out tenants just so that you can increase rent. If you do that, you either have to keep the unit empty for a year before listing it again or you need to work out a compensation with your tenants.
Now regarding what I'd do, I always ask myself about what kind of cashflow or ROI can I get investing in anything. Thus, what kind of cashflow is your condo generating? If it's closed to 0 or even negative, then, sell it and move your money elsewhere.
Canadian bond yields a tad over 3% as of today. That should serve as a guideline. If you can't generate at least 3%, look somewhere else. Because Canadian bond is pretty much the lowest risk product on the market. And if you have to take any risk and do < or = to bond, it makes no sense.
Canadian RE is in its relative peak. Everything else staying equal, there isn't much room to move up. The forecast I am getting from most market observers are predicting a 15-20% correction before whatever policy Carney cooks up would come into effect.
Some have mentioned that the problem is the price, I don't personally agree to that. I still believe it's a question of supply rather than anything else. Remember, real price of anything is usually dictated by supply/demand. Now we have more supply but demand is relatively flat, and therefore price is going to drop.
Stock market, I think we are on the verge of another huge industrial revolution. This time is all about AI and robotics. It's going to propel our economy in scales that even the invention of steam engine and internet pales to come even close. And yes, I do believe it's within the next 2-5yrs time. The question becomes, do you have time to kinda park that money in the stock market and forget about it?
Investment is about giving resources and TIME to allow opportunity to pan out. Conventional metrics such as PE or whatever is really only a good indicator for companies that are in a stable market without much ability to break out of its current form.
With that explained, now I'd suggest 2 things:
1. RE - If you believe in it and makes you sleep better, check your cashflow. If condo is no good, take it out and look for opportunities. During the 2008 RE crash, my family basically went on a shopping spree. We offered 30-50% of asking price (I shit you not) and cash deal. Ended up picking up a few properties at ~40% of market value (in our own estimate). Now, I don't think our RE market is this desperate right now. Thus, just research inside out of any particular area you like. So much so that if I ask you what rent can be had or what's the average price psqf, you can give me the answer without thinking. Then if a good deal comes along, you can grab it before anyone else.
2. Stock - If you like this better and want the inherited benefit of it (it's highly liquid and the sky is the limit), find companies that suit you... I like companies like TSLA, MSFT, NVDA and TSMC. I might be biased as I have position in all of them, but they are companies that I can sleep on without ever checking their stock price. If it's a company that you need to constantly look at, don't do it. It's not good for your brain. And even though many of these don't really pay any significant dividend, you can use things like the wheel strategy to kind squeeze money out of it. I employ them at a very low risk level and only sell options and never buy. I average about 8% yield and that pays for the food to our table and my mortgage.
Again, not an investment advise, but I alway focus on cashflow on whatever opportunity when it comes to money. It makes no sense to hold on to something and wish that it goes up or down. That's speculating, not investing.
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