Rental or owner-occupied

[Mohamed Mahmoud]

My wife and I are going for our first property ever, we're currently living in a rental and probably won't move out soon because the rent is relatively cheap, so we want to rent out our first property when we buy it.

However, I'm afraid if we purchase it as a rental, we'll be losing out on the Home Buyer Plan, the capital gains exemption, Land transfer tax exemption, and who knows what else.

What are the pros and cons of declaring it as a rental or owner-occupied?

Mind you, I live in Ontario Canada, so the rules are probably a bit different than the US.

[Roy Cleeves]

Hi Mohamed.  Most people in your situation buy it as their home to move into. They keep the rental that they are in, and they move in for a few days and then change their mind and rent it out.  This is all done after closing and you must be sure to advise the lender and the lawyer that you plan for it to be your new home to live in and not mention renting.

If it is brand new then it is important to change your driver's license etc to that property as well to avoid paying HST because of it being a rental.

And if you are choosing between brand new and resale - do resale as you then have no issues with HST.

I hope this helps.  You can call me or text me if you want to talk more about it.