There is no safer place for your money than a GIC, but the best you’re going to get with rates falling is 2.45% on a five year term according to GIC Direct. Ouch.
Over the short term of weeks or even months, I completely agree, your money's safe. But holding your money in a GIC for years at merely 2.45%, seems a sure route to penury imo, as inflation tends to eat you alive slowly but surely.
a) you've income taxes (so, you're not netting 2.45% on your GIC), and, b) you've inflation (your money's real value drops 2%/year?). So as I see it, you've not even a shot at +0.45%/year.
So back to investing in a rental condo: To me I see your real profit may be down the road when a hopefully higher resale value is probable (any increase, even if it's merely inflationary, is taxable but at least there's still capital gains I think, so only half the net gain's taxable). Bottom line: I'd be thinking before buying a rental condo, what could I sell it for, today? And I'd want to factor in: will there be hidden costs coming up during my holding period (eg. structural issues, lawsuits)?
ps. (elsewhere) you remarked $100/month for rental condo insurance. I'm paying less than $20/month [well, $220/yr] for insurance on my rental condo (Pacific Coast SCU's insurance dept.).
Edited by James Bay walker, 27 February 2020 - 06:30 PM.