Did you receive a Year-End Bonus? Do you have a RRSP Contribution Room? Mutual Funds are NOT your only Options. Invest in Real Estate at 8-10% fixed returns!
Every year, Canadians go through a financial ritual – the RRSP season. Time is ticking away as we head towards the RRSP deadline of February 29, 2016 so join us on Wednesday January 27 to find out about the 17 qualified RRSP-eligible Investment Vehicles available to you [http://www.cra-arc.gc.ca/E/pub/tp/it320r3/it320r3-e.html]
Security of Capital is key.
Diversification is key.
What you will learn: **
– How your Registered Account can be Invest in Real Estate through a Self-Directed Trust Account.
– How to Diversify
– How to create a Realistic Investment and Retirement Strategy
** The strategies showed are applicable to RRSPs, TFSAs, RESPs, RRIFs, LIRAs and RDSPs.
Example of Alternative Investments Vehicles for 8-10% fixed returns:
– Investing in Mortgages, – MIC (Mortgage Investment Corporations) – Real Estate Investment Groups/Private Equity – and more
Simple to Understand + Easy to Manage + Stable to Forecast
In closing, “Be in Charge”. Do not let anyone (including the bank) decide on your financial future.
After 15 years as a Business development Executive in France and Canada, Laure left the corporate world during the 2009 recession, to follow a new path.Robert Kiyosaki’s Rich Dad Education led her to a career in Real Estate Investing, creating multiple sources of active and passive income. Laure is a real estate entrepreneur, a property manager, a mortgage agent and now a Certified Wealth Management Advisor.
Her expertise and her passion for Early Retirement has allowed her to mentor and empower home-owners to acquire more properties and build a long-term retirement strategy using their home equity, life savings and Registered Retirement Savings Plans (RRSP, LIRA, TFSA).
Realtor | Investor | Speaker The saying goes that, “every man is the architect of his future.” Aaron Charles’ passion for real estate lies in not only in constructing a solid and impactful foundation for his vision but also in his commitment to actualize the dreams of the individuals and families who he works with to help secure their biggest investment. To create, design and build a solid groundwork for any venture, one must have a big vision – a trait that Charles prides himself on possessing. The ability to see the bigger picture despite small instances, setbacks and obstacles is what has been the cornerstone of Charles’ success. His simplistic approach to real estate is a principle that he applies to life as well – buy low, sell high. In life you have to build from the ground up but aim high. www.aaroncharles.ca/ www.reapinc.ca/ www.dreammakerrealty.ca
A Self-Directed RRSP is a great way to save for retirement.
A Self-directed RRSP is an RRSP account (not an investment) that allows you to hold a wide variety of investments within one single trust account.
Self-directed RRSPs give you more freedom and control over your investment portfolio, tax-deferred. You have the opportunity to tailor your portfolio and become a money lender by directing your capital into an approved trust account that is then able to lend said funds into mortgages for higher fixed returns, secured on real estate.
Who is it for?
A Self-Directed RRSP might be a good choice for you if…
– You want more control on your future and plan properly for your retirement income.
– You already have a large deposit-based RRSP and now wish to diversify your investments in real estate
– You already hold investment securities (e.g., stocks, bonds, etc.) which you now wish to put in a tax-deferred plan
– You want the convenience of one simple statement
2015 RRSP Contribution Deadline: February 29, 2016. Maximum amount: $24,930
2016 RRSP Contribution Room Created on January 1, 2016 – consider contributing your 2016 contribution early via lump-sum cash deposit or set up pre-authorized regular RRSP contributions (e.g. monthly).
For many Canadians attempting to save for retirement, a TFSA may be the better option. The amount you can contribute to a TFSA is based on your “TFSA contribution room.” If you were 18 or older in 2009 and, as of 2016, have not yet opened up a TFSA, you can immediately contribute up to $46,500 to a TFSA, consisting of $5,000 of accumulated room for each of 2009 through 2012, $5,500 for 2013 and 2014, $10,000 for 2015, and the recently-reduced $5,500 limit for 2016.
Locked-in Plan Conversion – considering converting your Locked-in Retirement Account(LIRA) to an income stream via a Locked-in Income Fund (LIF), do so early in the year as maximum payments are prorated based on the months remaining in the current year.
ABOUT SIX DEGREES
Six degrees of separation is the theory that everyone and everything is six or fewer steps away, by way of introduction, from any other person in the world, so that a chain of “a friend of a friend” statements can be made to connect any two people in a maximum of six steps.
The Real Estate Mixers are designed to educate & connect home-owners and investors in an intimate and warm environment.
If you are interested in learning more about how to invest in an rental property/multiplex (active investing) or invest your RRSP/Cash savings in alternatives investment vehicles in real estate (passive investing), then you have come to the right place.
The aim of these evenings is to create a space for like-minded people with an interest for real estate and investing Come and learn about money lending (private mortgages), MICs, Real Estate Investment Groups/Private Equity Funds and more.
HOSTED NETWORKING EVENTS
Laure will be there to connect you with the professional, lender, investor that you have been looking for your project, real estate transaction or investment. Come to us during the networking event and we will introduce you to the right person! See you there.
Realtor | Investor | Speaker
Stacked Town Home Pre | Construction
Builder’s VIP pricing
THE BENEFITS OF INVESTING IN THE REAL ESTATE ASSET CLASS:
#1. Cash Flow
A big advantage real estate has over other investments, is that it can produce cash flow on a monthly basis. Positive cash flow is derived from the revenue collected in the form of rent and laundry income minus expenditures required to pay for and operate the building. The cash generated by a real estate investment will always be a much larger percentage cash-on-cash return than any other investment. The reason for this is leverage.
Leverage is the ultimate power of investing, and the fact is that there is no investment where the application of this tool is more powerful than real estate. In real estate the leverage is based on the asset itself, and even the notoriously conservative banks will loan up to 75-80 percent and sometimes higher of the total asset value. Banks are comfortable lending large sums of money for the purchase of real estate because they know it is one of the safest and most profitable investments available. Also when you leverage an investment, you reap the benefits of appreciation on the total asset value, while only having a small percentage of your own money in the deal.
Real estate generally is a long term investment, and its benefits are best realized over the long term. It takes time for real estate to appreciate in value; however, while the property is appreciating the residents are paying down the mortgage. On top of this the rental income grows on a percentage annual basis.
The average compounded annual increase in real estate nationally has been 5% per year for the last 25 plus years, since 1980. Depending on the real estate cycle at any given time, the geographic location and type of property, the percentage annual increase could be substantially higher of course. Residential real estate appreciates more than the annual rate of inflation over time.
#4. Hedge Against Inflation
Many people feel that the commonsense thing to do is to take your money and put it into a savings bond or bank account that yields 2 to 3 percent per year. The main argument for this type of investing is that it is “safer” than real estate or other types of investments. The problem with this strategy is that you do not make any money, due to inflation.
Inflation is the price we pay for goods measured against a standard of ability to purchase those goods. The long term average of inflation has been nearly 3.5 percent since 1913, the year it began being tracked. That means that putting your money into a bank investment or account that yields only 2 to 3 percent, earns you no purchasing power in the future. You are actually losing wealth because inflation is higher than your returns. The gain in interest is wiped out by the rising cost of living. You are not becoming wealthier, you are becoming poorer because the cost of goods is growing faster than the value of your money.
The beauty of real estate is that it is a tangible asset-a good. Meaning it will generally rise either at the rate of inflation or much higher. Historically real estate has risen at 5 percent per year -a full 2 to 3 percent higher than inflation. And that is just appreciation. That does not take into account the cash flow generated, nor the tax advantages such as depreciation, refinance, and tax deductible mortgage interest.
Depreciation is an income tax deduction that allows a taxpayer to recover the cost of wear and tear, deterioration, or obsolescence on an annual basis. For real estate, it is a nonoperational expense that can be used to your advantage come tax time.
Another advantage of real estate over other investments is the ability to withdraw cash through a refinance of the property. This, too, is a tax shelter. When you refinance a property you are restructuring your existing mortgage debt based on the added value of the property. Refinancing also allows for investors to pull their initial investment out, while still continuing to have a vested interest in the property, creating a cash-on-cash return of infinite because the capital investment is zero!
#7. Asset Protection
There are a number of ways to legally protect a real estate investment that cannot be utilized by other investments like stocks and bonds. If a stock or bond company has a bad year, and suffers losses, the individual investor is simply out of luck. Real estate is one of the few investments that can be insured and protected from damage caused for whatever reason. By having the proper insurance coverage, you are able to claim losses for the actual value of the asset before the loss, and during the loss.
Another distinct legal advantage of real estate is that it can be placed into a corporation or family trust that allow you to protect your personal wealth by individualizing and protecting your assets in an event of a lawsuit. There are also distinct tax advantages.
#8. Physical Asset
Real estate is a physical asset, that cannot be traded by a click of a button by an online brokerage. You can physically walk the grounds of the property, and inspect the building. As such, it’s not subject to the volatility of other investments like stocks, where change can happen fast. You are not at the mercy of the company’s public relations department, waiting to hear from them. Meaning, if the company announces poor earnings for a quarter, the stock will drop suddenly with little warning. Your only option is the react, but not before you’ve lost a substantial sum.
Real estate is different. While it still has its ups and downs, for the most part real estate takes a more tortoise like approach: slow and steady wins the race. By paying attention, and knowing what to look for, we can see the trends that lead to changes in the market, well before they happen. Allowing us to formulate an investment plan on how to change operations or to sell. This in turn maximizes our return on investment or cash-on-cash return.