First Time Buyer

by Rustam
(Mississauga)

Hi, Tom and Nick.

I'd love to add to the praise you've been receiving over the years from the real estate investors for the invaluable advice you are providing, hopefully you'll help me out too.

I am 34 y.o. and I came to Canada 4 years ago and finally found a job that pays me around $65,000 a year. I am a single guy and have around $25,000 - $30,000 that I could use as a down payment on a house in Hamilton, which will be my first one, which means I'll be actually eligible for some tax credits and land transfer rebates.

What if I decided to live in a rental property in Brampton/Mississauga area close to work and rent out my private house, would there be some tax implications? Would it still be possible to write off the mortgage interest as if it was an investment property?

My intent is to buy a second property within a year thanks to the savings I am going to make by not paying all the living costs of owning your own house and living in a rented apartment.

I figure as long as I stay single it appears to be a common sense strategy. I hope you 'll share you take on how much sense it all makes to you.

Thank you in advance,
Rustam