Image Source: American Advisors Group Tapping into retirement savings has always been a highly controversial topic, especially if you are considering using the funds to buy a home. While financial experts are generally split on the decision with strong advocates on both sides, Prime Minister Harper&#x27s new move appears to be a green light to enable more Canadians to tap into their RRSPs in order to invest in real estate. Harper Set to Fuel Canadian Property Market with Retirement Cash In August 2015, PM Stephen Harper announced a new initiative, which would allow first time home buyers to withdraw from their RRSPs as much as $35,000 to buy a house. That&#x27s up $10,000 from the previous limit. The Financial Post reports that while the previously low limit was often a complaint of the Canadian real estate industry, now just as many aren&#x27t sure it is the best move. The rate of increase certainly pales in comparison to how much property prices have risen. If this money is put into new construction in the right markets it could help fuel the economy and increase homeownership, while helping more buyers get on the property ladder. This new RRSP announcement comes right on the heels of a permanent extension of the Renovation Tax Credit which gives a 15 percent tax break on home improvements. Together this €˜tax free cash&#x27 could help many get ahead. That is if they are financially prepared to ride out any future temporary fluctuations in the market. US Retirement Plans Get Flexible In the US, as in the UK, individuals can now take full control of their retirement accounts. By rolling over 401ks and individual retirement accounts to self-directed IRAs individuals can invest in real estate in a wide variety of ways. This includes residential and commercial real estate investment properties, and real estate partnerships. Summary Investing in income producing real estate can often be far safer than relying on unpredictable stock markets to perform and deliver returns. With the security of real estate investments, individuals can generate consistent cash flow and confidently use the proceeds to pay for their ongoing living expenses.

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