B.C. couple charging $3,100 a month for a condo that’s still losing money told to sell rental properties
Situation: Almost $10,000 monthly net cash flow but heavy property investments aren’t earning a return
Solution: Sell two rental condos, use net cash to pay down home mortgage, calibrate retirement income
A couple we’ll call Hank, 49, and Mira, 45, live in British Columbia. They have one child, who we’ll call Kelly, age 3. Monthly incomes and government benefits add up to $9,541 after tax, his from working in computer management for a large company, hers from local government. While they have several properties and some savings, they are not earning the return they should be on those assets.
“Are we at risk when we have so much of our money in property that pays nothing and might never?” Hank asks.
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To help work out the relationship between their investments and their future, Family Finance asked Derek Moran, head of Smarter Financial Planning Ltd. in Kelowna, B.C., to examine the family’s accounts. “Their core issue is a couple of rental condos that are not good investments,” he explains.