Quote:
Originally Posted by CrzyCanuck
50K deposit would be from heloc, then open morgage on the remaining 150K @ 5.1%. I did forget about the condo fees, so theres an extra few bucks. Banks wants to change me $200 to get this all done.
THis place just shows so well compared to other 180K condo's today that I believe it would sell in the busier months of May June.
I could also rent the place for around 1100 per month, leaving me short about 150$ per month for interest/property tax etc. That was the route I was going to go, but that would put me selling it in the less attractive months of the year.
But so far in Edmonton this year, Jan is up 4%, the inventory on MLS yesterday was around 1280 listings, so there is a demand. Considering this place is in the right price range.... The person who buys this cannot afford the 250K plus for a town house at todays price.
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keep in mind, if you're not using the condoas an income producing property, you may not be able to use the 50% capital gain deduction. If you're using the condo to produce income, then it's a capital item being used produce the rental income. But if all you are doing is buying it so you can sell it for a gain, then the CRA could come back and say that your intent was to make money by buying/selling the condo, making it 'active' income, meaning the entire gain might be taxable....unless there's special meaning behind you choosing to sell in 5 months?