Posted on: 17-03-11 18:26:11
Now that I bought a house from builder and closing is in another year or so, need some expert opinions from investment/tax perspective. I am currently living in a semi-detached house in Mississauga and has appreciated quite a bit.
What are pitfalls and advantages in each of the following scenarios?
1) Leasing/renting semi
2) Sell it and make bigger downpayment on new house
Any additional scenario?
Quote:
Originally posted by bhootnath
Now that I bought a house from builder and closing is in another year or so, need some expert opinions from investment/tax perspective. I am currently living in a semi-detached house in Mississauga and has appreciated quite a bit.
What are pitfalls and advantages in each of the following scenarios?
1) Leasing/renting semi
2) Sell it and make bigger downpayment on new house
Any additional scenario?
Good luck on your new home purchase.
When I work with my investor clients, I advise them to work on worse case scenarios.
What if market goes down?
What if you loose your job?
What if interest rates were to go up?
What if economy goes bad?
What if you get bad tenants?
These type of questions will allow risk taking with caution.
There is no reward without taking some risk.
Your personality, financial strength and individual goals play an important role when it comes to investing.
You should consult your financial advisor, accountant and a trusted Realtor should you decide to sell your present home or rent one of your properties in question.
Cheers,
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Thank you very much for the response. The answer to most of the questions is to sell one of the two houses (may be at a loss but that can be sustained because of the current appreciated house). But here are my honest answers.
Quote:
Originally posted by amit kalia
Good luck on your new home purchase.
Thank you
Quote:
Originally posted by amit kalia
When I work with my investor clients, I advise them to work on worse case scenarios.
What if market goes down?
A:If real estate market goes down, I am really not looking for short term investment. Worst case would be not getting a tenant for long time. Then I do not have a choice but sell one of the 2 houses.
Quote:
Originally posted by amit kalia
What if you loose your job?
A:Sell one of two houses depending on length I will be unemployed.
Quote:
Originally posted by amit kalia
What if interest rates were to go up?
A: I can sustain that change or basically go with fixed for now.
Quote:
Originally posted by amit kalia
What if economy goes bad?
A: As long as job is good it may not matter much. otherwise sell one.
Quote:
Originally posted by amit kalia
What if you get bad tenants?
A: This is the tough situation that I see among all. Though the laws kind of protects owners but hassles will be too much.
Quote:
Originally posted by amit kalia
These type of questions will allow risk taking with caution.
There is no reward without taking some risk.
A: Agreed.
Quote:
Originally posted by amit kalia
Your personality, financial strength and individual goals play an important role when it comes to investing.
You should consult your financial advisor, accountant and a trusted Realtor should you decide to sell your present home or rent one of your properties in question.
A: I certainly will do that just wanted to do due dililgence before approaching them.
Although selling one of the two houses is safest bet but if I can sustain some of the challenges, from long term perspective and from tax perspective will it make sense to keep both the houses and put other one on rent?
Again appreciate the response.
