Using RRSP for Real Estate Investment
QUESTION:
I would like to use my RRSP's for the 25% down-payment on a revenue
property. Do you know of any way in which this can be accomplished?
david ingram replies;
The only way is to pay the tax and take what is left for the down payment.
Any time in the last five years would have been a good time to do this.
However, it might not be so good in the NEAR FUTURE IN SPITE of what some of
the economists have been saying.
IT WILL BE IN THE LONG run but not necessarily in the short.
Make sure it is a "good" deal and that you have the cash flow to carry the
payments. I have several people in trouble lately because their tenant has
bought and moved out and suddenly they cannot find a tenant as easily as
before.
Three months of no rent at $1,300 a month is $4,000 that you have to come up
with.
If I were going to buy today, I would look for a pooled project where I
could have my unit in a pool.
With a rental pool, you will still get 90% even if there is a 10% vacancy.
I would like to use my RRSP's for the 25% down-payment on a revenue
property. Do you know of any way in which this can be accomplished?
david ingram replies;
The only way is to pay the tax and take what is left for the down payment.
Any time in the last five years would have been a good time to do this.
However, it might not be so good in the NEAR FUTURE IN SPITE of what some of
the economists have been saying.
IT WILL BE IN THE LONG run but not necessarily in the short.
Make sure it is a "good" deal and that you have the cash flow to carry the
payments. I have several people in trouble lately because their tenant has
bought and moved out and suddenly they cannot find a tenant as easily as
before.
Three months of no rent at $1,300 a month is $4,000 that you have to come up
with.
If I were going to buy today, I would look for a pooled project where I
could have my unit in a pool.
With a rental pool, you will still get 90% even if there is a 10% vacancy.
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