The rent could pay most of the mortgage

Submitted by Jasmina on Sat, 2007-01-06 23:48.

TheStar.com - Athome: FIRST-TIME BUYER:

Sandra Rinomato a host of HGTV's Property Virgins agrees with that. "Real estate is a fantastic investment. It's important to diversify, but I think everyone should have it in their portfolio," she says. "Conservatively speaking, real estate equity goes up by 5 per cent each year in Toronto. That means that just by having the house they'll have made money." The fact that the house has rental units is an added bonus. "Six hundred dollars in monthly rental income will carry $100,000 worth of mortgage based on a 25-year amortization period," she adds. "Twelve hundred dollars can carry $200,000, and so on. "What that means is that with two rental units in the house and the right market rent (Olga) could still own her home if extenuating circumstances like a job loss intervened."