The state of Calgary’s economy has created a dip in real estate prices causing a negative effect for those selling, but good for those who are looking to buy homes, including those looking at the rental business.
There are many differences between owning a home and purchasing a property for rental.
– Residential mortgages can get away with a 5% down – Rental properties are typically 20% down – Removing the personal side of it, living close to a school, commute, community, or amenities can demand higher rent – If you’re a handy person, a single family home can allow you to save costs and opportunities to rent out the basement or suite – If not, condo fees take care of some maintenance fees, but there would be other issues such as regulations, condo boards – Secondary suites in some cases can be a good idea to pay on the mortgage, but you lose privacy. Laneway homes are also increasing in popularity, which is good for relatives and seniors.
Deductions on Income Tax Returns
– Mortgage interests, property taxes, utilities, advertising, general maitenance and upkeep, deduct your accountant, property maintenance or property management
Other Considerations
– Take the time to know the tenant, check the references, and the landlord tenant act
Here’s to hoping there’s positive out of the negative!