New answers tagged rental-property
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DIY forum guy here.
First, it isn't for you to tinker with the landlord's heating system. Paying rent on it doesn't mean you own it. So you must not alter anything on it; or you instantly become liable for any and all failures in that system, since the landlord can now assert that any failure is the result of your illegal tinkering.
Second, it isn't ...
5
You are betting on the value of the property increasing.
Tax issues regarding rental property have a few subtleties.
the average rent in my area is the same as my mortgage (which is fixed rate).
Don't forget property taxes and any HOA or condo fees. Some people forget that. For the typical homeowner these don't have any tax issues, but for a rental ...
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You say that since rent would be the same as your mortgage, you'd be operating at a loss, but that mortgage money doesn't disappear. Instead, you'd be trading ready cash for added principal on your mortgage. Is that worth it? Maybe. If you calculate that you'll lose $200/month in order to make a $1500/month mortgage payment, that's a reasonable tradeoff, and ...
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I would say that, yes, it is tax-inefficient to rent and receive rent. Living in your own home is equivalent to renting to yourself (i.e. paying an amount of rent and receiving the same amount of rent), except you don't get taxed on the rental income as you would if you actually rented out to someone.
This is the concept of "imputed income" -- you save ...
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Something else to consider, because you are in Canada, based on the tax implications of selling a 'principal residence' [ie: the home you actually live in]:
Any gain on selling a principal residence is completely tax free.
For every tax year, only one property can be your 'principal residence'. In some cases, you may have the ability to choose which is ...
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If you move, you are correct that you would be "worse off" (financially) than you are now, but the things you are comparing are actually independent from each other. Consider these hypotheticals:
You currently live in your parents house and pay no rent. If you choose to rent an apartment on your own, you would be "worse off".
You currently live in a paid ...
1
Talk to a lawyer now (I'm not one)
I don't believe California has a cooling-off period where you could get cold feet about the lease and back out. Currently, you haven't moved in, do not.
What I would do
Check if the checks have been cashed yet. If they have not.
Go back to the management office and offer some money (like a few hundred) to get the ...
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