Good Afternoon.

My husband and I just bought a condo locally (closing Feb. 20,2003)for the
kids to live in (as we plan to retire and move).

 

They are not paying rent and will not be in the foreseeable future.

 

Can we still deduct our costs;
Heat and light, maintenance fees, taxes, legal costs etc.

DI - Nothing is deductible - you did not buy for a rental profit.

 

We thought we would not get a mortgage on the condo at present; instead,put
one on at a later date when we start to generate revenue. Is that a wise
decision, or is Revenue Canada a stickler if we don't do it right away?

 

If you were to put a mortgage on it in the future to pay for another property which "was" used for rental income, the mortgage interest would be deductible "then" but not against this property.  It would be dedcutible against the other rental property.

 

Our reason is that we don't want any extra payments if we were not getting
income. It leaves a ?? as to whether we are making the right decision,

 

There is no sense having a mortgage now.  When you do want a mortgage, call Joan Marsh at (604) 535-9981.  Joan is likely the most knowledgeable mortgage broker in Vancouver when it comes to making mortgage interest deductible.  You can hear Joan and I on Fred Snyder's show on CFUN most Saturday afternoons from 2 to 3 PM. CFUN is 1410 on teh AM dial.

 

I'm tax rules illiterate. We need to generate income for our retirement and we plan to buy some form of revenue property. What is advisable for the downpayment/mortgage ratio - some leverage, some income, tax effective.

I do individual counselling of course.  Others do as well and I have answered with more information at the end.

 

It's very confusing. A little mortgage on both, all mortgage on one investment etc. What's best? Do you have a book out you can recommend?

I could write another book here.  My investment guide deals with some of this but it is out of print.  Ozzie Jurock has a class starting right now.  He might still sneak you in - try ozzie@jurock.com.