Higher interest rates combined with stricter regulations have some Canadians beginning to second-guess the wisdom of investing in a short-term rental property.
Deana Steele says she has never seen as many condo and vacation homes for sale as there are in Kelowna, B.C. right now.
But as more and more people tried to get in on the action, the balance shifted. By the summer of this year, Steele said, the number of Airbnb and similar listings in the city was outstripping demand. But in 2023, some of the shine has worn off short-term rentals as an investment strategy.It's partly because various levels of government are increasingly imposing restrictions aimed at curbing the practice, such as banning short-term rentals where the owner doesn't reside in the property.
"But with higher interest rates and weaker housing market, prices might not go up by nearly as much as they once did. They might even go down." "And remember that with stocks and bonds, you can buy them and there's not much work involved. Owning an Airbnb property is a business, it's a job, and you also need to factor in the cost of your time."
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