Buying a home to live in but renting 1st 4 years
Hi all
I came up with an idea this afternoon which got me thinking. I researched the internet on it but couldn't come up with anything useful.
Here's my situation and idea: I work full time and am boarding with my parents which allows me to save quite a bit. I am also studying for a degree which will take another 4 - 5 years.
My idea is that I could buy a home that I'd like to live in, but instead of moving in straight way, rent it out to help pay off a bit of the mortgage. This also gives me extra time and money to finish my study. I wouldn't have to fork out extra costs for food, power, etc.. Rates and insurance are about the only expenses I can think of.
That's the basic idea. My questions are:
1) Any tax implications? My intention is to buy the home for myself long term. I am aware that tax has to be paid on the rental income...
2) So are any expenses deductible that relate to the rental income? Rates, insurance, interest etc... for the years I rent out?
3) Any comments, advice etc...?
Thanks
Razor