Canadian homeowners who own a separate rental property earn on average $2,189 per month or 50 per cent more than their monthly costs, according to a new CIBC poll released on Thursday.
Also, people who rent out space in their home offset their housing costs by 70 per cent.
“High housing costs and the growing appetite for additional revenue streams make renting out space a popular choice, especially among younger Canadians,” said Jamie Golombek, managing director of Tax and Estate Planning at CIBC Financial Planning and Advice.
“While most homeowners believe the tax benefits alone make an income property a worthwhile investment, it’s critical to understand how it fits into your overall financial plan, and be mindful of all of the tax implications of going this route so you can make the most of the venture.”
The report found:
- 26 per cent of Canadian homeowners are already landlords (15 per cent) or plan to earn (11 per cent) rental income by letting out space in their primary residence or from a separate rental property;
- 64 per cent of current landlords own one or more investment properties used exclusively for rental income;
- 31 per cent of current landlords rent out a portion of their primary residence for long-term (22 per cent) or short-term stays (nine per cent);
- 72 per cent of all homeowners believe investing in real estate is an excellent way to earn supplemental income;
- 37 per cent of homeowners say they’d opt for a home with a source of rental income if buying a home today;
- 47 per cent of millennial homeowners are already landlords (30 per cent) or plan to be (17 per cent), compared to only 29 per cent of homeowners aged 35 to 54 and 12 per cent of those aged 55-plus.
Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.
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