In the Lower Mainland, specially in the suburbs, you deal with some absolutely ridiculous rent-to-property value ratio. You still see full houses in neighborhoods where pretty much every SFH goes for at least a mil renting at low-mid 2,000's. Once the ratio becomes this disconnected, you're no longer in the business of renting; you're speculating on the property. And if the business is speculation then there's no point in building purpose-built rentals.
you would only be going in the hole if the value did not increase whatsoever. what if it went up just $20,000 per year in value?
450,000 today
470,000 in 2019
490,000 in 2020
510,000 in 2021
now you are up $24,000
In the Lower Mainland, specially in the suburbs, you deal with some absolutely ridiculous rent-to-property value ratio. You still see full houses in neighborhoods where pretty much every SFH goes for at least a mil renting at low-mid 2,000's. Once the ratio becomes this disconnected, you're no longer in the business of renting; you're speculating on the property. Sure you can still turn a profit on a condo you're renting even if rent doesn't come close to covering the bills... but the underlying assumption is that to realize the gains you have to flip the property. And if the business is flipping then there's no point in being a professional landlord.