Rental Property vs Stock Market - What’s the Best Investment?

♦ Rental Property vs Stock Market - What’s the Best Investment? ♦ In my video and podcast episode we’re going to look at this from the eyes of a growth investor. You’ll get a head-to-head comparison with data going back decades. We will discuss topics you won’t see anywhere else, including how to save tax on a rental & the effect of leverage on return. Spoiler alert. Effect of leverage on rate of return is huge! And you’ll get my rental property rule of thumb! Watch this video to find out: • How does growth of real estate compare with the stock market? • What are the sources of rental property returns? • What is the normal return for each source of returns for rentals? • How does the total return on rentals compare with the stock market? • What are the best and worst types of rental properties? • How do you minimize tax on rental properties? • Should you deduct depreciation (CCA) on your rental? • How do you record the sale of your rental on your tax return? • How does the size of the mortgage affect the return on your rental? • How do different amounts of leverage affect the returns of rentals vs. stocks? • What is Ed’s Rental Property Rule of Thumb? • What is Ed’s general advice on owning rental properties? Ed __________ ►Get FREE financial advice when you sign up for the Unconventional Wisdom newsletter from the #1 blog in Canada for a financial planner. We give you insights from experience on building financial security. Sign up here: https://www.edrempel.com __________ ⏰ TIMESTAMPS 00:00 | Introduction 01:51 | What you will learn today 01:55 | The growth of the stock market vs. real estate 04:09 | What is the cash flow of a rental property 09:01 | Why condos tend to be the worst rental property 10:57 | The growth of the rental property industry 13:36 | The tax issues with rental properties. 16:53 | Capital cost allowance 22:33 | How long it takes to grow annual tax savings after selling a property 26:02 | How to calculate the tax on the sale 28:07 | Capital gain and net proceeds 30:23 | The total return of rental property vs. stock market 33:42 | How does the size of the mortgage affect your return 34:08 | How the Leverage Effect works in rental property 37:25 | What is the after-tax profit? 42:41 | Rental properties and stock market investments 45:51 | Ed’s rental property rule of thumb 48:09 | Rental property investing strategies 53:14 | Why rental properties should be part of a retirement plan 55:00 | How to be confident in the stock market long-term 57:02 | Risk tolerance is a learned skill 58:50 | The standard deviation chart 1:01:05 | Predictions for the stock market 1:03:13 | Recap of the episode __________ ♦ SAY HI ON SOCIAL MEDIA Facebook:   / edrempel1   LinkedIn:   / edrempel-fee-for-service-financialplanner-...   Twitter:   / edrempel   __________ Please like, share and comment if this video has been helpful to you! Thanks so much! Ed Rempel __________ Ed Rempel CPA, CMA, CFP is a financial blogger, fee-for-service financial planner and tax accountant with a ton of real life financial planning experience. He was awarded “Best Canadian Personal Finance Blog” by Expertido, and is the #1 financial blog in Canada for a financial planner on Hardbacon and Feedspot. For the past 28 years, he has assisted thousands of Canadians with creating real, professional, “interactive” financial plans that earn results. Ed is known for his financial strategies, such as the Smith Manoeuvre and Lifecycle Investing strategies. He is also particularly skilled with the 8-Year GIS Strategy, a strategy to help seniors qualify for larger government pensions using effective planning & investing.