Renting out advice

[sa226]

Alright CP I have decided ask for some advice from the wide ranging experience and intelligence of CP

I am currently renting an apartment, but I hate throwing rent money away when its 85% of decent mortgage. I would like to buy a house, but with my job there is a good chance that I could relocate to somewhere else in canada in as little as a year or as long as 5 years, it depends on the industry.

So, I am wondering if people have experience with owning a rental property. I wouldn't use it as a business, just a way to have someone else pay my mortgage while I live elsewhere.

I am also wondering what the minimum timeline would be if I would have to sell it. Would I lose money if I had to sell within a year? 2 years?

Thanks

[fundmark19]

It all depends on the property you buy, what price you get it for and how the market reacts in 2 years. Homes are supposed to be looked at in a more 5 year window. There is no minimum timeline you can sell it at anytime. You may face pay out penaltys so I reccomend going with an open mortgage so you would avoid all those fees!

[Boblobla]

pm Mike Oxlong if he doesn't appear in this thread. He is a Mortgage broker and should be able to answer some of the questions you have.

[REDVAN]

Don't rent to the same people my dad has in his place right now... or actually, please do, so they leave his place.

[ken0042]

Originally Posted by sa226

I hate throwing rent money away when its 85% of decent mortgage.

That is a bad way of looking at it. You aren't throwing money away- you are paying for a place to live. Throwing money away would be buying a place, living in it for a year, putting $1000 towards the mortgage and then paying $7000 in fees to sell it.

Looking at some of the challenges others have faced with renters, I wouldn't want to rent out a place if I wasn't able to stop by every so often to see if they have trashed the place.

[MJM]

My coworkers just recently went on 2 year secondment to Australia and rented their house at. They were very picky as to who they rented to. Came back and it was still an absolute mess. If they could do it again, they would have just sold the house while they were gone. I'm sure other people have had better experiences, but I know quite a few that wish they hadn't got into renting.

[sa226]

Originally Posted by ken0042

That is a bad way of looking at it. You aren't throwing money away- you are paying for a place to live. Throwing money away would be buying a place, living in it for a year, putting $1000 towards the mortgage and then paying $7000 in fees to sell it.

Looking at some of the challenges others have faced with renters, I wouldn't want to rent out a place if I wasn't able to stop by every so often to see if they have trashed the place.

Ya throwing away is a bad way to put it. I just meant I could be building equity, but instead I'm just paying my landlords mortgage.

Its not that I can't afford it. I'm always very careful about these things. I just want to make the right decision.

Long distance renting is a risky proposition.

I have a third option that involves commuting, and there is varying opinions on that.

Anybody on here a commuting pilot?