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Beneteau 393
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It really depends on the net cash benifit you receive by renting.

I don't know how the tax system on property works in Canada, but I know a fraction about it in the USA and they have a pretty high yearly tax based on the value of the property, even if its not rented out.

In Australia there is a small land tax on property thats rented out.
I have kept my house in Australia and it pays my cruising kitty (whilst appreciating in value)
All my fees and expenses in running the property are tax deductible. So for me its a no brainer. Keep the property and have an income.

Obviously theres difficulties, like last year when the hot water system blew up, the bathroom blocked up, the electricity fried up and the roof fell down. But apart from that its been fine.

Re TQAs point on havinf to fly home occasionally... Yes, but the flights are a tax deduction.


Mark
 

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Beneteau 393
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Like most things the figures are out there for you to make a decision based on facts and not some rumour mill:

According to recent data from the Real Estate Institute of New South Wales vacancy rates for rental properties across Sydney during March dipped 0.3% to 1.4%
That means theres so few places to rent agents can select the best tennats only. Therefore the chances of default are very low.

The OP is from Canada so theres figures there too

Canada

Montréal CMA 2.8%

the major centres with the lowest vacancy rates in the primary apartment rental market were Calgary (1.0 per cent), Edmonton (1.4 per cent) and Toronto (1.6 per cent). The centres with the highest vacancy rates were Saint John (11.4 per cent), Moncton (9.1 per cent) and Charlottetown (7.9 per cent).
As for renting to people who default... some investment advice is to buy low end properties and the cash return is higher than premium properties where the rental return is lower but the capital gain is higher.

My belief is premium properties in nice area with good agents get a better tenant... they keep the house better and pay on time.

Going to Minnewaska's point about what you do after cruising... If you have no house, and have no income whilst sailing then what will you be doing when you get home: working? Or living a very quiet life?
 
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