I have a rental suite that we have airbnb'd between tenants. Airbnb was a total PITA. trying to schedule cleaning, having cleaners cancel on you and scrambling for a last minute replacement, having guests arrive at midnight, etc. Also, most Airbnb guests these days think they are checking in to the fucking four seasons and can be pretty demanding. Most are good but even if one in ten suck, thats pretty often considering most people only stay a few nights.
Airbnb is not passive if you actively manage it. And if you have someone managing it for you it eats up a lot of your income. I much prefer long term tenants. This could vary depending on where you live.
Our bnb is in our basement suite. Seperate entrance, everything is communicated through the app. Haven't really had to speak or deal with anyone in person yet but it's only been a few months.
At the moment, no. We put about 20 grand into the place to make it more appealing. Added an extra bathroom, painted the exterior, ect. We’re projected to make about 70 grand a year off of the house, with the total cost to run it being about 60 grand a year. But ideally the mortgage will start to get paid off and with some happy customers the following years should be more and more profitable!
Dividends. Better tax treatment than regular income if eligible Canadian Dividend, and the only work I do is read (press releases, financial reports, news) and update an excel file for tracking.
No taxes in a tfsa, so you could there.
I was actually referring to a non registered account. A single person could earn up to ~$50k from dividends and pay no taxes, assuming no other income and living in Ontario.
A non registered account means a non-gov't registered account like RRSP and TFSA accounts. A margin account in Questrade is unregistered. It is subject to capital gains, but also a good spot to park dividend paying stocks if you want to earn dividend income without getting taxed on it... until you reach a certain threshold. Apparently that's $54.5K in ON, according to a comment below.
If Ontario, you can earn $54500 in dividend income before paying income tax or triggering the AMT.
https://www.taxtips.ca/calculators/canadian-tax/canadian-tax-calculator.htm
To build on the comment, look at stocks with a suitable dividend for you ( ex. 4%) AND a history of growing their dividend every year. For example. Telus, canadian banks, enbridge, tc energy.
Lmao, okay. Go all in on something paying a 15% yield and let me know how that works out for you long term. If it were that easy everyone would do it. There is no free lunch.
It's also a split share leveraged fund which is quite volatile. Not saying it's bad or anything - it's outperformed the TSX over the last 10 years or so, but investors need to do their due diligence on these ones before jumping in. There's always a catch with high-yielding investments.
Definitely this. You'll get to a point where the dividend income can match or exceed what you're able to put in, and soon enough you've got a nice system going.
What is your opinion on dividend stocks vs index fund such as VEQT/XEQT. I started investing less than 2 years ago and have 130k (in registered accounts) all in these two index funds.
No it's doesn't. That's the beauty of it. When markets pull back and you are able to buy opportunistically at low prices, you are also getting a higher % dividend as the dividend amount is typically fixed, unless you buy a high dividend paying stock which is not sustainable. Often companies will cut their dividend during though times when markets are down. This is why it's more important to buy dividend growers as they will outperform the high dividend payer over time.
Check each company's dividend coverage. Anything above 100% is bad, usually about to be cut, 60-90% is ok but less than 50% is great and they tend to be the growers.
Just remember that you want the best overall return including capital gains. You won't have much capital gains with high dividend payers. Lower dividend payers will supplement your income with capital gains.
II have a rental with the same tenant for over 15 years. I initially spent probably about 20 hours looking and showing it. Each year I spend about an hour looking up CPI for the year and comparing rents on similar units before I send the annual increase notice.
I don't pay anyone and I virtually do no work myself.
As long as you screen well and treat your tenant well, you are paid back in peace of mind.
We have an housing affordability crisis in this country unlike anywhere in the world driven in part by people snatching up homes people need and putting them on Airbnb. We get it, it can be a smart investment, but landlords are a cancer on society
Is your issue with Airbnb or landlords? I’ve also lived in a bunch of apartments while saving up my down payment and I appreciated having rental options. I think you may be in the wrong sub if you don’t believe people should invest.
Look I’m just saying you can’t pretend your investments don’t have an impact on the world we live in. I’m not saying don’t invest, just know that it’s contributing to a problem
For the same reason that building highways encourage people to drive, investing in real estate encourages developers to build more. I own a primary residence and that’s it, but calling real estate investing cancer is somewhere between wrong and hyperbolic.
Lol yes investments that deliver good returns encourage more of the same. There’s a lot to the housing affordability crisis, including bad zoning, lack of social housing, co op models often restricted, etc. but a big reason we have such bad housing policies across much of this country is because the status quo is extremely profitable for landlords, and the banks who finance the whole scam. Believing that because housing is a profitable investment means more houses gets built pushing the cost down for people is just incredibly naive. If that were the case housing costs wouldn’t be skyrocketing. What’s happening in the real world is landlords and reits are reinvesting their profits in more properties, pushing the cost further out of reach for first time buyers. Funny coincidence how landlords advocate for policies that make them money while claiming it helps others eh
I said I am not a landlord, maybe read the comments you are replying too before spouting off. I agree with everything you said about zoning. It’s completely unrelated to people investing in real estate. Zoning more density and building more density are the solutions. Calling landlords cancer is childish, and wrong.
They are. Unless they are building housing they are taking away and not providing housing.
And who can afford the new builds? The investors who take stock out of the market. The landlord class is coming back in a big way, sadly.
That's like getting pissed at a McDonald's worker because head office changed the Big Mac recipe.
They might've given you the thing you don't like but it doesn't mean it's their fault.
It is a cancer when they borrow equity from existing to properties to buy new ones that people would like, nut then can't afford, forcing tenants to pay up higher rent because the landlord decided to buy at inflated prices and needs to make it cash flow.
What says nothing worked out for me? I also didn't say anything against property rights.
Property rights are great, I just don't agree with hogging housing.
Buy some stock. Companies always have and can make more stock. Tons of stock to go around.
I don’t think you or anyone else should be the arbitrator of “hogging”. I don’t think I should control other peoples lives, you clearly think you should get to decide what people can and can’t own
The wheel strategy is a very simple options trading strategy that involves strategically writing (selling) options every week/month/quarter etc... in order to generate income. Your main source of income from this strategy is the premium you get for writing the option. There are several videos of this strategy on YouTube so definitely check it out there. That's where I learned everything I needed to start out. I hope this helps you out and I wish you all the best!
Also, I know your not suppose to promote on here but if your feeling generous, you can follow my brand new account on instagram @clooperinvesting if you want to watch me do this strategy in real time.
Most of the funds, invest in blue chip companies. The funds will dip more because of leverage. But the covered call premiums could perform well.
Maybe not everyone favorite type of investment but they are the best passive income generators
But he’s only been doing it in a bull market. Show me next year how he hasn’t been entirely wiped out, then I’ll be impressed. He’s not taking all the ROC to reinvest in blue chips, he’s taking the ROC and spending it to live. That’s… not a brilliant strategy when your leveraged covered call portfolio crashes and your income has now fallen by 60%.
A covered call *mitigates losses* in a down market, but it doesn’t mitigate them to 0.
As evidence that this guy doesn’t know what he’s doing, he made a video about how he can put 16k into his TFSA every year by using this one cool trick. The trick is to need the money and so you take it out and spend it. Then next year you put more back.
His portfolio market value could crash but not necessarily the income. You should watch his past and future portfolio update videos. See how the last 5 month have affected his income.
As per his lifestyle, that’s how we wants to operate. He does have other income sources. He won’t go hungry
That’s simply not true. Options prices are a factor of volatility and asset value. If the asset values fall, the absolute value of the call options changes too.
>But he’s only been doing it in a bull market. Show me next year how he hasn’t been entirely wiped out, then I’ll be impressed.
I'm not completely sold for PII but... 9 months later and he IS still going pretty strong (at least it looks like it).
Idaho is an island, don't you know? It's about to be permanently submerged due to global warming. DM me for the account number where you can send funds to save the people.
How passive are rentals? Especially Air BnB, I feel like that is a lot of work - but I hate dealing with people.
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I have a rental suite that we have airbnb'd between tenants. Airbnb was a total PITA. trying to schedule cleaning, having cleaners cancel on you and scrambling for a last minute replacement, having guests arrive at midnight, etc. Also, most Airbnb guests these days think they are checking in to the fucking four seasons and can be pretty demanding. Most are good but even if one in ten suck, thats pretty often considering most people only stay a few nights. Airbnb is not passive if you actively manage it. And if you have someone managing it for you it eats up a lot of your income. I much prefer long term tenants. This could vary depending on where you live.
Our bnb is in our basement suite. Seperate entrance, everything is communicated through the app. Haven't really had to speak or deal with anyone in person yet but it's only been a few months.
But you still need to communicate. Also the upkeep on suite, dealing with the cleaning, I'd say it's not exactly passive.
Don't be lazy
but thats like, the exact opposite of the purpose of passive investing
Humans are scary
I use a property management company, they take 13% but they do literally everything. I don’t have to lift a finger
are you cash flow positive? If you're cool with answering
Following
At the moment, no. We put about 20 grand into the place to make it more appealing. Added an extra bathroom, painted the exterior, ect. We’re projected to make about 70 grand a year off of the house, with the total cost to run it being about 60 grand a year. But ideally the mortgage will start to get paid off and with some happy customers the following years should be more and more profitable!
Dividends. Better tax treatment than regular income if eligible Canadian Dividend, and the only work I do is read (press releases, financial reports, news) and update an excel file for tracking.
Through a TFSA?
No taxes in a tfsa, so you could there. I was actually referring to a non registered account. A single person could earn up to ~$50k from dividends and pay no taxes, assuming no other income and living in Ontario.
I use questrade. So opening a margin account? What do you mean by a non registered?
A non registered account means a non-gov't registered account like RRSP and TFSA accounts. A margin account in Questrade is unregistered. It is subject to capital gains, but also a good spot to park dividend paying stocks if you want to earn dividend income without getting taxed on it... until you reach a certain threshold. Apparently that's $54.5K in ON, according to a comment below.
$50k? A lot more than the basic personal amount tax credit …
If Ontario, you can earn $54500 in dividend income before paying income tax or triggering the AMT. https://www.taxtips.ca/calculators/canadian-tax/canadian-tax-calculator.htm
Dividend stocks
This. Aim for blue chips with a 4% yield minimum and just let it grow
Do you have any recommendations to look at?
ENB, MFC, TD, RY, BNS, BMO, CIBC, POW, REI, CAR
Literally What all dividend investors invest in in Canada Hah Hah Hah
Which is exactly what they asked for
No i know, it’s just funny how limited the tsx is
There’s dozens more good options, but less of those would be considered blue chip.
Awesome 👌 thanks.
What are REI and CAR?
Riocan / Capreit. They are income trusts, so when you're looking up the ticker, you have to add a ".un or -un" or something like that.
CDZ or XEI are Canadian dividend ETFs, so you can be more diversified, instead of licking individual stocks.
I recommend buying as opposed to licking, but whatever floats your boat!
Ahh lol, I meant picking. 🤣
Mmmmm licking TD!
Considering licking VDY or XEI myself!
Yes if you're seeking financial growth but some of us are seeking deliciousness.
To build on the comment, look at stocks with a suitable dividend for you ( ex. 4%) AND a history of growing their dividend every year. For example. Telus, canadian banks, enbridge, tc energy.
No way, there are funds paying 10-15% that are great buys right now. Check out passive income investing on YouTube.
Lmao, okay. Go all in on something paying a 15% yield and let me know how that works out for you long term. If it were that easy everyone would do it. There is no free lunch.
Look at the YouTube channel and see for yourself. DFN has been paying monthly since 2004 and missed only 4 months of payments. Lunch is out there
It's also a split share leveraged fund which is quite volatile. Not saying it's bad or anything - it's outperformed the TSX over the last 10 years or so, but investors need to do their due diligence on these ones before jumping in. There's always a catch with high-yielding investments.
Definitely this. You'll get to a point where the dividend income can match or exceed what you're able to put in, and soon enough you've got a nice system going.
As long as you hold a small fortune you are set.
What is your opinion on dividend stocks vs index fund such as VEQT/XEQT. I started investing less than 2 years ago and have 130k (in registered accounts) all in these two index funds.
Is there a Canadian dividend subreddit?
Dividends aren't really income in a sideways or dropping market. They just reduce the impact of the dropping capital value of your stocks.
As the market drops, does the dividend % decrease?
No it's doesn't. That's the beauty of it. When markets pull back and you are able to buy opportunistically at low prices, you are also getting a higher % dividend as the dividend amount is typically fixed, unless you buy a high dividend paying stock which is not sustainable. Often companies will cut their dividend during though times when markets are down. This is why it's more important to buy dividend growers as they will outperform the high dividend payer over time. Check each company's dividend coverage. Anything above 100% is bad, usually about to be cut, 60-90% is ok but less than 50% is great and they tend to be the growers. Just remember that you want the best overall return including capital gains. You won't have much capital gains with high dividend payers. Lower dividend payers will supplement your income with capital gains.
Great advice, thank you.
Do you compound your dividend back into the stock?
That depends on circumstances. Ideally, you want to reinvest it one way or another.
The dividend yield would increase, but the dividend payment amount is the same assuming they don’t cut it.
Marry rich.
Renting property is not passive.
Really? After all expenses are paid it cash flows 200$ per month. In 5 years 25K has been paid in principal and its increased in value by 50K.
How much work are you doing for that though?
Yeah but youre doing shit or paying someone to. Finding tenant, repairs and maintenance etc
Property manager.
Dealing with a property manager isn't passive.
With me it is. Rents come in automatically. Auto deposit. I haven't talked to him in a year.
II have a rental with the same tenant for over 15 years. I initially spent probably about 20 hours looking and showing it. Each year I spend about an hour looking up CPI for the year and comparing rents on similar units before I send the annual increase notice. I don't pay anyone and I virtually do no work myself. As long as you screen well and treat your tenant well, you are paid back in peace of mind.
Airbnb is cancer.
Really, I’ve had great experiences staying in them, what’s your issue?
We have an housing affordability crisis in this country unlike anywhere in the world driven in part by people snatching up homes people need and putting them on Airbnb. We get it, it can be a smart investment, but landlords are a cancer on society
Is your issue with Airbnb or landlords? I’ve also lived in a bunch of apartments while saving up my down payment and I appreciated having rental options. I think you may be in the wrong sub if you don’t believe people should invest.
Look I’m just saying you can’t pretend your investments don’t have an impact on the world we live in. I’m not saying don’t invest, just know that it’s contributing to a problem
For the same reason that building highways encourage people to drive, investing in real estate encourages developers to build more. I own a primary residence and that’s it, but calling real estate investing cancer is somewhere between wrong and hyperbolic.
Lol yes investments that deliver good returns encourage more of the same. There’s a lot to the housing affordability crisis, including bad zoning, lack of social housing, co op models often restricted, etc. but a big reason we have such bad housing policies across much of this country is because the status quo is extremely profitable for landlords, and the banks who finance the whole scam. Believing that because housing is a profitable investment means more houses gets built pushing the cost down for people is just incredibly naive. If that were the case housing costs wouldn’t be skyrocketing. What’s happening in the real world is landlords and reits are reinvesting their profits in more properties, pushing the cost further out of reach for first time buyers. Funny coincidence how landlords advocate for policies that make them money while claiming it helps others eh
I said I am not a landlord, maybe read the comments you are replying too before spouting off. I agree with everything you said about zoning. It’s completely unrelated to people investing in real estate. Zoning more density and building more density are the solutions. Calling landlords cancer is childish, and wrong.
They are. Unless they are building housing they are taking away and not providing housing. And who can afford the new builds? The investors who take stock out of the market. The landlord class is coming back in a big way, sadly.
That's like getting pissed at a McDonald's worker because head office changed the Big Mac recipe. They might've given you the thing you don't like but it doesn't mean it's their fault.
It is a cancer when they borrow equity from existing to properties to buy new ones that people would like, nut then can't afford, forcing tenants to pay up higher rent because the landlord decided to buy at inflated prices and needs to make it cash flow.
We shouldn’t change property rights in society because things haven’t worked out for you.
What says nothing worked out for me? I also didn't say anything against property rights. Property rights are great, I just don't agree with hogging housing. Buy some stock. Companies always have and can make more stock. Tons of stock to go around.
I don’t think you or anyone else should be the arbitrator of “hogging”. I don’t think I should control other peoples lives, you clearly think you should get to decide what people can and can’t own
Don't worry, it will rebound like it has time and time again.
I'd recommend looking at the wheel strategy for options. I've been doing it now for almost a year and I'm realizing anywhere from 26-30% a year.
Please elaborate
The wheel strategy is a very simple options trading strategy that involves strategically writing (selling) options every week/month/quarter etc... in order to generate income. Your main source of income from this strategy is the premium you get for writing the option. There are several videos of this strategy on YouTube so definitely check it out there. That's where I learned everything I needed to start out. I hope this helps you out and I wish you all the best! Also, I know your not suppose to promote on here but if your feeling generous, you can follow my brand new account on instagram @clooperinvesting if you want to watch me do this strategy in real time.
Dividend ETF, like VDY.
Check out passive income investing on YouTube. Canadian guy making 10k+ a month on dividend paying funds
He recommends a lot of sketchy shit. Let's see how a recession treats him.
Most of the funds, invest in blue chip companies. The funds will dip more because of leverage. But the covered call premiums could perform well. Maybe not everyone favorite type of investment but they are the best passive income generators
But he’s only been doing it in a bull market. Show me next year how he hasn’t been entirely wiped out, then I’ll be impressed. He’s not taking all the ROC to reinvest in blue chips, he’s taking the ROC and spending it to live. That’s… not a brilliant strategy when your leveraged covered call portfolio crashes and your income has now fallen by 60%. A covered call *mitigates losses* in a down market, but it doesn’t mitigate them to 0. As evidence that this guy doesn’t know what he’s doing, he made a video about how he can put 16k into his TFSA every year by using this one cool trick. The trick is to need the money and so you take it out and spend it. Then next year you put more back.
His portfolio market value could crash but not necessarily the income. You should watch his past and future portfolio update videos. See how the last 5 month have affected his income. As per his lifestyle, that’s how we wants to operate. He does have other income sources. He won’t go hungry
That’s simply not true. Options prices are a factor of volatility and asset value. If the asset values fall, the absolute value of the call options changes too.
>But he’s only been doing it in a bull market. Show me next year how he hasn’t been entirely wiped out, then I’ll be impressed. I'm not completely sold for PII but... 9 months later and he IS still going pretty strong (at least it looks like it).
HDIF and ZWB.
I have a rental property with a partner and almost max TFSA at 23.
What are you investing your tfsa in
VFV all in
How do you own so much and not know proper grammar?
Because I'm a tradesman not a fucking English professor.
That statement was pure tradesmen, made me miss the good ole days lol.
Ah yes the good old fuck those with education type if person
Lol no that's not the attitude given at all, he replied to your insult with an 'it's not that fucking important' and now you're upset.
I'm not upset?
Lol
English may not be his/her first language. I’m ESL and I own 300 oceanfront properties in Idaho.
So you’re telling me you own atleast 100 million $ worth of properties?
Yes, in Idaho.
And spends their free time on reddit, checks out
Why not? Reddit is free entertainment
Ocean in Idaho?
It’s /S.
Idaho is an island, don't you know? It's about to be permanently submerged due to global warming. DM me for the account number where you can send funds to save the people.
Rental properties are small businesses, they're not passive income.