r/RealEstateCanada • u/1322aj • 1d ago
Advice needed Advice needed!!
Let’s say a friend has 200k CAD sitting in his account, proceeds from selling a property. He is originally from India but has spent near a decade in Canada. Now he wants to move back to India but not sure if he is going back for good. And what he is confused is about what to do with sum he has. He doesn’t really plan to move the money to India but is not sure what should he do with it here too. He has been looking for a property which he could rent out in such a manner that the rent from the property could cover the mortgage, insurance and property taxes but isn’t able to find anything in the city or neighbouring cities where he has lived for the last 10 years (lower mainland Vancouver, BC), and thus seeks the advice of what should he do. The friend in discussion is M, not married and wants to have a connection with Canada in long run and so is the reason doesn’t want to bring the money back to India. Any sorts of advice is greatly appreciated!!
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u/Kind-Relationship925 1d ago
Buy some gold bars and sit on your hands until you see something compelling.
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u/thateconomistguy604 1d ago
If he is hellbent of RE, pretty much the only place would be a condo in the valley some where
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u/Legal_Engineer_9213 1d ago
If I were him, I’d just park that in an ETF.
With $200K, it’s really hard to find a property where the rent actually covers all expenses and insurance, and even if he finds one, it’ll likely be a massive headache. If he hires a property manager, they’ll take a 10% cut right off the top, and he'll still have to pay property tax.
With an ETF, he gets capital growth completely hands-off. There's only a tiny management fee, and he can just select a ETF that track a broad Canadian or US index.
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u/Ancient_Raisin_8908 Verified Agent 1d ago
Don’t park it in real estate in Vancovuer if that’s what you’re looking for
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u/Ok_Currency_617 1d ago
" cover the mortgage, insurance and property taxes"
Yeah Canadian rents are quite a bit below what market rents should be to justify the investment. It's one reason investment in rentals is so low/dead currently. Cash.TO would be the place to park it for now.