When her mother fell ill last year, Melissa flew from her Toronto-area home to British Columbia to help care for her elderly parent.Soon after arriving in B.C., she decided to rent out her mortgage-free condo, valued at $600,000, and remain in her mother’s house, which she will eventually share with her sister.
We asked Vikki Brown, a certified financial planner at Modern Cents, an advice-only financial planning firm inAs an advice-only planner, Ms. Brown sees her role as helping clients consider all factors on both sides of a decision so they can “make the choice that is right for them.” Melissa’s rental income is $19,000 a year, or a 3.16-per-cent annual yield before tax, the planner notes.
At 65, when Melissa retires, she has an after-tax spending goal of $60,000 annually. . Melissa also has to consider the potential difficulty of owning property so far away and while she is out of the country. “One of