More than one quarter of Canadian homeowners are landlords
Back in May, CIBC published a survey entitled So… you wanna be a landlord? Tax considerations for rental properties. The report outlines tax considerations for homeowners who have rental income or are planning to earn it. According to report, more than one in four Canadian homeowners are either already landlords (15%) or plan to earn rental income (11%) by renting out space in their primary residence or from a separate rental property. And, nearly two in five (37%) homeowners say they’d opt for a home with a source of rental income if buying a home today. To quote the report directly – “The income and tax benefits from renting a property or space in a home are worth the headache.”
The poll found that homeowners with a separate rental property earn on average $2,189 per month—50% more than their monthly costs. Those who rent out space in their home reduce their housing costs by as much as 70%. Seventy-four percent of landlords believe the benefits of tax deductions make owning an investment property a good investment even if it carries a negative cash flow. A third of all landlords who own a separate rental property say their top reason to invest is to generate income now (15%) or upon retirement (19%).
In light of the insights provided by CIBC’s survey on rental property ownership and tax considerations, prudent financial management becomes paramount, especially for individuals seeking to optimize their investment portfolios. Navigating the complexities of rental income, tax implications, and long-term financial goals requires strategic planning and expertise. This is where Selective Wealth Management comes into play. As homeowners explore avenues to bolster their financial standing through real estate ventures, Selective Wealth offers tailored strategies to maximize returns while mitigating risks. With a keen understanding of the intricate dynamics between property ownership, taxation, and wealth accumulation, Selective Wealth provides invaluable guidance to help clients achieve their financial aspirations and secure a prosperous future.
The poll findings also reveal that Canadians aged 18-34 are more likely to be landlords than any other age group. Almost half (47 per cent) of millennial homeowners are already landlords, compared to only 29 per cent of homeowners aged 35-54 and 12 per cent of those aged 55 and over.
Twice as many millennial homeowners than baby boomers say that if they bought a home today they would choose one with a source of rental income.
Read the report here.
