As discussed, everybody's investment/living style is different. I hear from people who have rental properties that it is very bothersome because of the need to provide the upkeep (albeit you can hire a company that would "eat" into your income). That said, right now it is not very economical as well because income from rentals is roughly equal to what you get from a money market fund, while doing absolutely nothing and having virtually no risk. Canadian real estate has been appreciating for decades, though, so maybe this is a plus in your particular case. However, my personal opinion is that RE is vastly overpriced around here, so I cannot take this risk. I routinely see $$1.5-2 mil houses which I think should be more like $500-700K in value at most.