Common Registered Retirement Savings Plan

(RRSP) Mistakes

A Registered Retirement Savings Plan (RRSP) is a tax-deferred account designed specifically for retirement savings. Any resident of Canada under the age of 71 who has earned income may establish and contribute to an RRSP. Read the full story

Syndicate Mortgages In Ontario

A syndicate mortgage is where several investors combine funds together to create one instrument (a mortgage). The investment 'moves' as one funding but each investor is individually registered and secured proportionally. Syndicate mortgages allow you to have direct collateral for your investment and ongoing returns from the interest earned by the mortgage.

Read the full story

Multi Tasking RRSP

November 19th,2010 | www.WorldWealthBuilders.com |

"RRSP can be utilized to its maximum benefits as per the guidelines of Canada Revenue Agency (CRA) apart from tax deferral and retirement savings. Being an educated Professional Real Estate investor would be able to get benefits many times over " says Navtaj Chandhoke, founder, World Wealth Builders, a Canadian Institute for Real Estate investors and mentoring. You need to learn and keep yourself up to date to have maximum benefit from your RRSP".

"Once you are familiar with how to put the RRSP work for you right now instead of after the age of sixty five, the rewards can be realized now and later" said Navtaj Chandhoke "Investing in yourself, your education will give you far better return than any other investment."

There are two ways to borrow from your RRSP. First is through the RRSP Home Buyers Plan, for first-time home buyers, and second is through the Lifelong Learning Plan, for educational expenses.

The Lifelong Learning Plan (LLP) allows you to withdraw amounts from RRSPs to finance training or education for you or your spouse or common-law partner. You cannot use the RRSP funds to finance your children's training or education, or the training or education of your spouse or common-law partner's children.

You can make withdrawals from more than one RRSP as long as you are the annuitant (plan owner) of each RRSP. Your RRSP issuer will not withhold tax on these amounts. Although the maximum amount that you can withdraw is $20,000, there is an annual limit of $10,000. There is no limit on the number of times you can participate in the plan over your lifetime. Starting the year after you bring your balance to zero, you can participate in the LLP again and withdraw up to $20,000 over a new qualifying period.

The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $25,000 (after January 27, 2009), from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability .

You are not considered a first-time home buyer if you or your spouse or common-law partner owned a home that you occupied as your principal place of residence during the period beginning January 1 of the fourth year before the year of withdrawal and ending 31 days before your withdrawal.

You have to meet this condition at the time you withdraw an amount from your RRSPs under the HBP.

However, if you are a person with a disability, or you are buying or building a home for a related person with a disability or helping such a person buy or build a home, you do not have to meet this condition. See HBP Condition - Person with a disability.

If at the time of the withdrawal you have a spouse or common-law partner, it is possible that only one of you will be considered a first-time home buyer.

These Canada Revenue Agency programs allow you to withdraw funds without a tax penalty. If you borrow outside these programs before retirement to pay for a trip or a car, the withdrawal is considered income in the year you received the funds and you’ll pay hefty taxes.

Check with Canada Revenue Agency for full details on both of these plans.

These plans make sense for some people, but there are drawbacks. First, when you take money out of your RRSP, you lose the power of compounded interest and re-invested returns on those funds. Money grows exponentially over time and when you reduce the money in your RRSP account, you earn less interest and sacrifice potential returns.

There are other pitfalls as well, make sure to research them all and realize the primary benefits of the plans are home ownership and education weigh the pros and cons to make an informed decision.

RRSP Mortgages/Creative Financing apprenticeship

for Canadian Real Estate Investors

Registered retirement savings plans allow you to invest your money in mortgages whereby you can determine your own rate of return and have the ability to place the money wherever you choose. When investing your own RRSP funds you must understand the following steps before you proceed:

1. You must understand the mortgage act.
2. You must know the interest act.
3. You must know how to write a commitment letter.
4. You must know who you can or cannot lend money to.
5. You must know the minimum or maximum interest you can charge.
6. You must know the costs involved to establish a self directed RRSP and the ongoing administration costs.
7. You must know the remedies available in case of default.

What you need to know about RRSPs
Self directed registered retirement savings plans are subject to rules and regulations which have been established by the Canada Revenue Agency. There are many options and choices available to invest your RRSP funds which may include:

1. Investing alone.
2. Investing in mortgage investment corporations (MIC).
3. Investing partially with other investors.

Legal Aspect of RRSPs
Since an RRSP is a legal document, it is pertinent that a legal opinion must be obtained in writing before proceeding. You also have to understand the requirements of the trustee (the bank who is holding your RRSP) as they may or may not allow you to lend more than a certain percentage of loan to value ratio. Keep in mind that if there is a default, the trustee is not responsible to go after the mortgagor.

Creative financing is not a substitute for 100% financing. Instead, it is utilized for the purpose of leverage, cash flow and tax benefits.

Creative financing is mandatory for investment properties where your rate of return is not the only reason to invest. It can also provide a tax shelter, help you to defer capital gains or to write off expenses against.

Every successful Canadian real estate investor would like to maximize the benefits of owning real estate apart from simply making huge profits. As a real estate investor, you can also invest as a retirement nest; to build an empire or business as a builder/developer where you intend to use other peoples money to create win-win situations. Since we all have very limited amounts of liquid cash, it becomes a basic necessity for real estate investors to utilize creative financing for the purpose of acquisition, development and long term holds.

RRSP Mortgages and Creative Financing Apprenticeship

At World Wealth Builders we offer a two day intensive apprenticeship for Self Directed RRSP Mortgages and Creative Financing which will open new doors for you in the way you invest in real estate. For upcoming times and locations of this apprenticeship, please visit www.WorldWealthBuilders.com/live  or send an email to vp@WorldWealthBuilders.com

__________________________________________________________________________________________________________
__________________________________________________________________________________________________________

Regular Tuition Fee - $9995*
Special Price for Live Presentation - $7995* (For dates and times check our calendar)

To Register Click Here
*+ applicable taxes (GST/HST)