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It comes down to tax savings, profit taking

Did you know, if you cannot beat them you have to join them?

retire_facebookTalking about investments.

If you in Rome, do like the Romans.

You make a deposit into your bank account, meaning in reality, the bank borrows from you. Your return from them is less than the inflation, so your money’s buying power is diminishing and fast. In the other hand, you borrow the very same money from them for three times the rate you are getting, so they are making huge profit, what they do not share with you, though it is your dough. What do you think who is smart here? Not you it is damn sure.

On the other hand, you can do like the Bank (not the Romans) Borrow personal line of credit, equity line of credit, pay 3-4% to the bank and lend it out into safe, capital protected mortgages, earn double digit return (10-16%) beating them at their own game. Also do not forget if you get a line of credit you only pay interest on the portion you use at any given time.

To make it more interesting, guess what. The line of credit interest you pay to the bank is TAX deductible. Now this is what I call a double whammy, besides I will call you a smart investor.

In case I have got your attention you just visit me on our website and if you like what you see call me to discuss, I will be glad to answer all your questions.

Almost forgot, these type of investments are RRSP eligible, with added TAX savings ( don’t you just like to cheat on the tax man legally) and you will be able to retire in time to enjoy your golden age with some money in your packet. It called in dignity.

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Advantages of Investing in Private Mortgages

Invest for high return a protected capital

Invest for high return a protected capital

The most secure and durable investments are in real estate property. Though real estate prices fluctuate from time to time, over the long-term, real estate property appreciates in value. The security for a mortgage is the real estate property itself, making mortgages a good place to invest.

Investing in private mortgages provides a regular income stream, tangible security and a real return to the investor that is superior to bank deposits, GICs and bonds. They are an eligible RRSP investment that is tax sheltered, and you can invest the interest over and over again.

Advantages of investing in private mortgages:

No Cost to You – The borrower is required to pay the costs to have the mortgage registered against title to their property. The investor simply sits back and goes about cashing the monthly payment without incurring any further cost.

Monthly Income – A mortgage will generate cash each and every month. The amount of the monthly payment will depend on the size of the mortgage, the interest rate and amortization period.

Protected Capital – There is low risk associated with mortgage investments; they are secured by the real estate property if the borrower is unable to make payments.

An RRSP mortgage gives a minimum of 10% yield rate of return that is secured by a first or second mortgage on a property in Canada. At a rate of 10%, your RRSP portfolio should double in value every 7 years.

Private mortgages can be a great investment, as there is security with the equity on real property and the property can be used to help pay off the mortgage if the borrower reneges. The lender is fully covered by the legal documents signed at the time of the mortgage, ensuring that the investment, as well as a profit, is collected.

Keep up with the latest news on buying and selling mortgages by subscribing to the Buying and Selling Mortgages blog.

Watch our video of the opportunity and the process, you will be glad you did.

The process fully revealed in this video!

president investorMore you know, the better and easier your due diligence becomes. Most importantly, you will be able to make a better decision and you will be a better investor and look opportunities with a different eye. Risk management and mitigating risk is an art. Remember, without risk, there is no profit. Just take a look at your saving account and the return on it; inflation just chews away every day at your capital and erodes the very buying power of your savings.  Read more…