Greetings TV
As for you thread about Cdn. Mortgage interest I do not see how you can take it off, unless it is a comercial property or you are renting it out. maybe he borrows for the RRSP and deducts the interest then takes the money he was going to put toward the RRSP and pays down the mortgage. you can take off interest if the loan is for investment purposes. should caution not everything you read in a book can be done, know two people who followed advice in one book, and now have back taxes and penalties to pay.
As for Real Estate I HATE the idea of renting. know 3 people it worked for and they have made a good return. however here are a few reasons why I think it is a bad idea.
1. know someone who rented out his house while he was working up north at a mine. decided after the first month to kick them out, 45 days later (very long story) and the courts got them out. house was destroyed $129,000 in damages. Can you go after them sure get blood from a stone, not worth it.....
2. had a family member rent out a house besides two months of missing rent had to repair the house for $10,000. I helped for the week and got a friend who just get homes ready to rent, he can tell you where a bat, shoulder, fist was put throught the wall. he did it as a favour without his and mine help bill would have been $20,000 +
3. Lawsuits, my brother (theme here) rented a house out two suites one tenant he got a table and chairs for, two weeks later fell down the stairs and threat a lawsuit. Nothing happend and my brother sold the house broke even. who needs to deal with jerks like that.
4. Rent Controls:If the liberals get in with a minority government or majority. however a minority government the NDP may want as part of their support Rent Controls. How about no Rent increaeses, or a cap with inflation. While property taxes and insurance go up quicker. Also maybe more tenants rites, and harder to evict.
5. Government housing. if the governemt changes expect about $500million-$2 billion spent on low income/subsidizes housing. most of this will be in Southern ontario where the votes are, also fun when you have to compete with the government. the argument is that they have to build these units that is because very little in rental properties being built in Ontario. just look at the returns and ask if you would build.
I own some lots on Lake Superior. If I were you would look at maybe later on Recreational properties. Bought some lots couple of years ago they were selling for $40,000-$55,000. at first no one bought now they are being sold quickly and often you have to pay a premium. For an example just look at Lake of the Woods and how much camps have gone up the past 5-10 years.
By the way 50% (roughly ) of the buyers are Americans. when advertised in Canada the response is often maybe 1-2. when property is advertised in the US ussually 12-24 calls asking "why is it so cheap, what is wrong with it".
also if you buy a lot by a lake you can use it, on vacation, or just relax. or sell it in 10 years for a good profit your choice.
by the way if you rent know of two people that look after rental units, good to keep in touch but not bad to pay someone $$ to handle some of the hassels.
by the way want a $100 a month, HR.un,Rei.un,Smu.un have all done well and yield over 8% a year, dividends paid monthly, worth looking into and maybe less hassels.
thanks
selkirk
