Reader’s Question #13, 14

Ok, here are a  couple of reader questions I’ve been meaning to answer.

Chris asked:

Do you know if there are any tax advantages/disadvantages to buying a property down south?

I’m assuming by down south that Chris is referring to the US.  Perhaps the most obvious thing to point out is if Chris is a Canadian resident that he is subject to Canadian income tax on his world wide income.  Hence any money made on a rental in the States would be subject to Canadian income tax.  Yet, Canada and the US do have a tax treaty which is suppose to reduce double taxation.  Then to make matters more complex it depends if you setup the rental as a business or if you just own it personally.  Generally speaking I did a little research on this and concluded you need to really talk to a professional about this one.  There is just to many variables involved for me to take a guess at.  I would start by giving a call to CRA.

David asked:

Hi; I am looking for a mortgage calculator that allows me to put in principal, payment amt., payment freq. and interest; and then tells me how long it will take to pay off.  All the ones I find do principal, period,  ayment freq. and interest; and then work out the payment amt.

I want to fool around with my weekly payment amounts to find out how it will affect the length of the mortgage.

David you can use the calculator I mention in the Tools section of the site.  It will allow you to enter a payment and keep the amount of time to pay it off blank.  That way you can play around with your payments and find out how long it takes to pay your mortgage off.  Just keep in mind that the term number is in months not years.