Is it better to consider leasing or buying

louer-acheter

The actual expenses of a purchase:

“When people do their math, they often only consider the price they paid for the purchase and the price for the resale, but in between there are costs to bear.” Whether it’s taxes, maintenance, the roof, windows or a French drain to change, not to mention the opportunity cost, such as the money tied up in the property that is not invested elsewhere.

If, by renting, you give your money to an owner, by buying you give your money to the bank in interest. By taking out a mortgage of $ 332,500 (house at $ 350,000 with 5% down payment) at a rate of 3% for 25 years, you will have paid in interest $ 139,562. The rate goes up to 5% and you give the bank $ 247,650.

The question is:

If I was renting rather than buying. What would happen if I took the $ 247,650 saved from the purchase over 25 years and I put it in an RRSP for example … Go do your math.

 

Accessibility to housing is declining in Quebec

prix-propriété

Acceleration of the price of properties for sale

The steady decline in active listings and strong demand continue to drive up property prices and decrease affordability. As a result, many institutions are starting to worry about the overpricing and overheating of the market. Improving labor market conditions, low interest rates, high savings and changing housing needs are the main factors supporting strong demand.

Impact on rents

The price of properties for sale has always paved the way for rental prices. An income property owner must necessarily increase his rents to follow the market value of his property. In this way, he ensures that once the property is resold, that his property is still profitable for the new buyer who will have paid him the highest price.

 

 

OWNER OF A RENTAL PROPERTY TAX

Did you know that:

If you own a rental property, you have certain obligations with respect to the tax treatment of the income you earn from your activities and the expenses you incur. You also have certain obligations to fulfill towards your tenants, including that of giving them an RL-31 slip, which you must first produce. Likewise, you could benefit from certain tax advantages.

  • New rental building and major renovations
  • Income and expenses
  • Obligations relating to the RL-31 slip

The RL-31 slip

If you own an immovable and have rented an eligible dwelling for which rent has been paid or was payable for the month of December 2020, you must produce the RL-31 slip and send it to the tenant.

This statement is used to report information relating to the occupancy of the dwelling as of December 31, 2020.

Production

You can file the RL-31 slip

  • online, starting December 1, using
    • the RL-31 slip production service, accessible in My file for citizens,
    • the Produce and consult RL-31 slips online service;
  • using software authorized by Revenu Québec and that you have purchased;
  • using software that you have designed and that meets our requirements;
  • on paper.