- BY a1accounting
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- VIDEO POST TYPE
The state of Calgary’s economy has created a dip in real estate prices– which is negative 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
– Take the time to know the tenant, check the references, and the landlord tenant act