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LeahCoss.ca So obviously, we've got our traditional buy and hold. And what buy and hold is is where you're buying an additional home, one that you do not live in and you're renting it out. So you're buying it, and you're holding it. Where you're making income is, hopefully, the rental payments covering the mortgage payments, which is then having that little bit of principle every month that gets packed away into equity that you then get to have. So someone else is essentially paying the mortgage for you. Now, how is this a good or a bad investment? Well, there's things you need to account for. One Does the rental payment cover not just the mortgage payment, but things like the heat and other things that come into equation, maintenance on the home as well as yearly property taxes. If it's not covering those things, this is costing you money as an investment standpoint. So that's something important to remember. The other thing is what about when it comes time to renew the mortgage on that home? What if rates are different? What if rates have gone up by two or three percent? Which, these days, it seems very likely. If that's the case, now your mortgage payments are higher and, again, will the rental payments cover that? Now, if you're OK with taking a loss and you're just simply in it for kind of like having that additional savings account where it's just putting the money away for you in the equity, then great. But if you're looking at this where you're actually wanting to ...



http://www.youtube.com/watch?v=W1acojKEZyg&hl=en

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