# Cost of keeping a home vacant



## eloy7 (Jun 21, 2015)

This is indeed part of my previous question, but as the topic is somehow different I opened a new thread.

I am considering buying a cheap home in Canada for my occasional visits (e.g., 3 months a year). How much will be my monthly cost to keep it vacant (consider a small flat in a medium city or a house in a small town).

I mean taxes, utility bills (are they pay as you go or subscription based)?


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## Berubeland (Sep 6, 2009)

You will find that insurance does not cover your property unless someone is checking it every 3 days.


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## Just a Guy (Mar 27, 2012)

Even if someone checks it, insurance on a vacant home is incredibly high. Property taxes will be the same, utilities will depend on where you buy and how much is used. You always need the stuff connected or the reconnection fees are extremely high. Then you need to worry about water pipes bursting, gas lines leaking, heat turning off in winter and pipes freezing... 

Non of which is covered by insurance if you don't tell them the place is vacant.


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## carverman (Nov 8, 2010)

Just a Guy said:


> Even if someone checks it, insurance on a vacant home is incredibly high. Property taxes will be the same, utilities will depend on where you buy and how much is used. You always need the stuff connected or the reconnection fees are extremely high. Then you need to worry about water pipes bursting, gas lines leaking, heat turning off in winter and pipes freezing...
> 
> Non of which is covered by insurance if you don't tell them the place is vacant.


Lots of insurers will not insure a vacant home..cottage being an exception. The risk of fire is another major risk for insurers. Besides the ones already mentioned. 
You have to be living in it for some portion of the year. Insurers do understand that owners can go on vacation, but the house has to be checked regularly by someone.

If utitlities are connected, there is always a minimum monthly bill, whether you use 1kw of electricity or 1 cu meter of gas.
So for starters there is always the fixed costs..but insurance is the biggest problem.


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## Rusty O'Toole (Feb 1, 2012)

I have answered you in another thread but, if you are only planning on being there for 3 months out of the year you would be better off to rent. Canada has a harsh climate and an unoccupied house can suffer severe damage if there is not someone there to look after it. 

Even if nothing very bad happens, you will spend a week or more cleaning up, doing small repairs and putting things in good condition. And you won't be able to hire anyone to help.

This is a routine part of owning a cottage which Canadians are used to but in your case distance adds to the problems.


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## OhGreatGuru (May 24, 2009)

You should also speak to a tax advisor, or contact Canada Revenue agency about your plans, to determine what your tax status would be in Canada, if you own a home in which you intend to live part-time, and that is not purely an income property. You may unintentionally become a "deemed resident" for income tax purposes.

From your other thread it also sounds as if you intend to work from this home. _(It is not a vacation, as my job allows me to work remotely on some stages ...)_ So unless you are a dual citizen you'd better talk to Citizenship & Immigration about whether or not you need a work permit.


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## amack081 (Jun 23, 2015)

OhGreatGuru said:


> You should also speak to a tax advisor, or contact Canada Revenue agency about your plans, to determine what your tax status would be in Canada, if you own a home in which you intend to live part-time, and that is not purely an income property. You may unintentionally become a "deemed resident" for income tax purposes.
> 
> From your other thread it also sounds as if you intend to work from this home. _(It is not a vacation, as my job allows me to work remotely on some stages ...)_ So unless you are a dual citizen you'd better talk to Citizenship & Immigration about whether or not you need a work permit.



He would have to sojourn in Canada longer than 3 months of the year to be considered a deemed resident. While residency is a complicated tax matter, the 183 day rule would be the first indicator whether or not he is a deemed resident (without considering family ties to Canada)

After this rule, CRA would likely consider secondary residential ties such as economic ties (bank accounts, cdn credit cards), social ties (membership to Cdn clubs or organizations) etc.


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## OhGreatGuru (May 24, 2009)

amack081 said:


> He would have to sojourn in Canada longer than 3 months of the year to be considered a deemed resident. While residency is a complicated tax matter, the 183 day rule would be the first indicator whether or not he is a deemed resident (without considering family ties to Canada)
> ...


That's the rule for "sojourning' in Canada over 183 days. But there are number of other criteria for being declared a "deemed resident" - one is ownership of a home, other than one that leased out as an income property.

_*Establishing residential ties in Canada*

1.25 The residence status of an individual is always a question of fact to be determined by taking into account all of the circumstances of the individual. The most important factor in determining whether an individual entering Canada becomes resident in Canada for tax purposes is whether the individual establishes residential ties with Canada. Generally, the comments found in ¶1.11 – 1.15 with respect to the residential ties of individuals leaving Canada are equally applicable to individuals entering Canada. As discussed in ¶1.11, an individual's spouse or common-law partner, dependants, and dwelling place, if located in Canada, will almost always constitute significant ties with Canada. _

_*Significant Residential Ties*
1.12 Where an individual who leaves Canada keeps a dwelling place in Canada (whether owned or leased), available for his or her occupation, that dwelling place will be considered to be a significant residential tie with Canada during the individual's stay abroad._

http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s5/f1/s5-f1-c1-eng.html


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## AltaRed (Jun 8, 2009)

I agree with OGG but would not worry about Article 1.12 with respect to an owned home that is leased out to tenants. But if an owned home is not leased out OR if leasing an apartment for occasional return visits, that MIGHT be enough of an issue to be a tipping point. 

I have no idea how the Asians who are buying up all the Vancouver RE are keeping their non-resident status.....or maybe they are not.


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## Cal (Jun 17, 2009)

Berubeland said:


> You will find that insurance does not cover your property unless someone is checking it every 3 days.


Didn't know that. 


Probably best as mentioned above to rent. Sounds like the simplest approach.


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