I have a detached home at Woodbine and Danforth. It has a basement apartment that I already rent out and is a five-minute walk to the subway.
I’d like to move in with my significant other, who rents a place downtown.
My question is: Should I sell the house and just invest the money elsewhere (my significant other isn’t ready to buy something together), or should I keep it and rent it out?
There’s an argument to be made either way here.
Keeping the property makes a lot of sense, given the current state of Toronto’s market.
It also makes sense to take the money and run, given the 20% increase in values last year, and the constant calls from analysts that we’re in a bubble.
I’ve written a lot on my blog in the past week about Toronto’s future, and how I think despite all this bubble-talk, I think we may be in for continued gains.
In the end, it’s about your risk tolerance, your financial position, and then how you would like being a landlord long-term.
If you have another investment vehicle for the money, it could be a good time to take the tax-free capital gain. But you have to balance that against a reasonable probability that we see continued gains in the market.