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Effectively plan your real estate retirement plan

on Wed, 03/28/2012 - 10:25

I have heard from more and more clients indicated that they want to sell their shares from the market and start their real estate venture for their retirement… Especially when we see the housing market hitting highs over and over again. No matter how many experts or economists had been warning us the housing market is overheat, over-valued, housing bubble is about to burst…. since all these "warnings" had been on for quite some time now, people on average haven't really take that into account anymore.

 

CIBC World Markets economist and expert in real estate Benjamin Tal described the Canadian housing market as a cat (has nine lives), and he released a report in the beginning of the year, The Housing Market - A Clear Softening Trend. Whether you think the housing market will continue to rise or it will drop, buying into real estate has always been a part of our retirement planning and saving plan. A lot of people have also been refinancing their home in different times along their lives for different reasons. 

 

I did another post the other day stating that the time in the market is the key to investment, but of course, real estate is still a sound portion within your portfolio. As a financial advisor, I oversee all my clients' investments, "overseeing" doesn't mean I give advises on all the investments my clients hold. I do not deal with stocks or real estate, but I will always include those assets in consideration when I decide where to put their money, to make sure we avoid any overlapping in their portfolio.

 

One thing I suggest if you want to use real estate as your retirement plan, use flexible mortgage solutions so that it won't cost you as much when you need refinancing. Or consider self-directed mortgages as part of your RRSP if you cannot take advantage of the Home Buyers' Plan. There are also ways to lower tax implications without affecting your cash-flow. Look into differend options before you make any financial decisions is very important, lots of things cannot be undone and sadly financial decision is usually among them.

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