Natalie and Norm own a small house in British Columbia that they are quickly outgrowing. He is 43, she is 35. They have two pre-school-age children.

Both have good jobs with defined benefit pension plans. Together they bring in about $163,000 a year plus rental income of more than $1,000 a month from their basement apartment.

“Our plan is to save for a down payment on a larger home over the next four years and keep our current home as a rental,” Natalie writes in an e-mail. They have recently stopped contributing to their registered retirement savings plans for the time being in order to save for the new home, which will cost about $650,000. They figure they can save about $166,000.

“So my question is, does it make sense to keep our current home as a rental when we buy that next home?” Natalie asks. Or would they be better off just selling the house and using the proceeds to help pay for the new one?

Full Story Here: http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/can-this-bc-couple-afford-to-upsize-and-rent-out-their-current-home/article25671463/