Rental Property vs Stock Market - What’s the Best Investment?

♦ Rental Property vs Stock Market - What’s the Best Investment? ♦

In my video and podcast episode we’re going to look at this from the eyes of a growth investor.

You’ll get a head-to-head comparison with data going back decades.

We will discuss topics you won’t see anywhere else, including how to save
tax on a rental & the effect of leverage on return.

Spoiler alert. Effect of leverage on rate of return is huge!

And you’ll get my rental property rule of thumb!

Watch this video to find out:

• How does growth of real estate compare with the stock market?
• What are the sources of rental property returns?
• What is the normal return for each source of returns for rentals?
• How does the total return on rentals compare with the stock market?
• What are the best and worst types of rental properties?
• How do you minimize tax on rental properties?
• Should you deduct depreciation (CCA) on your rental?
• How do you record the sale of your rental on your tax return?
• How does the size of the mortgage affect the return on your rental?
• How do different amounts of leverage affect the returns of rentals vs. stocks?
• What is Ed’s Rental Property Rule of Thumb?
• What is Ed’s general advice on owning rental properties?


Ed
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⏰ TIMESTAMPS


00:00 | Introduction
01:51 | What you will learn today
01:55 | The growth of the stock market vs. real estate
04:09 | What is the cash flow of a rental property
09:01 | Why condos tend to be the worst rental property
10:57 | The growth of the rental property industry
13:36 | The tax issues with rental properties.
16:53 | Capital cost allowance
22:33 | How long it takes to grow annual tax savings after selling a property
26:02 | How to calculate the tax on the sale
28:07 | Capital gain and net proceeds
30:23 | The total return of rental property vs. stock market
33:42 | How does the size of the mortgage affect your return
34:08 | How the Leverage Effect works in rental property
37:25 | What is the after-tax profit?
42:41 | Rental properties and stock market investments
45:51 | Ed’s rental property rule of thumb
48:09 | Rental property investing strategies
53:14 | Why rental properties should be part of a retirement plan
55:00 | How to be confident in the stock market long-term
57:02 | Risk tolerance is a learned skill
58:50 | The standard deviation chart
1:01:05 | Predictions for the stock market
1:03:13 | Recap of the episode
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Please like, share and comment if this video has been helpful to you!


Thanks so much!
Ed Rempel
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Ed Rempel CPA, CMA, CFP is a financial blogger, fee-for-service financial planner and tax accountant with a ton of real life financial planning experience. He was awarded “Best Canadian Personal Finance Blog” by Expertido, and is the #1 financial blog in Canada for a financial planner on Hardbacon and Feedspot.


For the past 28 years, he has assisted thousands of Canadians with creating real, professional, “interactive” financial plans that earn results. Ed is known for his financial strategies, such as the Smith Manoeuvre and Lifecycle Investing strategies. He is also particularly skilled with the 8-Year GIS Strategy, a strategy to help seniors qualify for larger government pensions using effective planning & investing.