{"id":552,"date":"2019-02-04T20:29:06","date_gmt":"2019-02-04T20:29:06","guid":{"rendered":"https:\/\/www.realestateleads.ca\/blog\/?p=552"},"modified":"2024-01-04T12:39:13","modified_gmt":"2024-01-04T12:39:13","slug":"real-estate-client-investment-advice","status":"publish","type":"post","link":"https:\/\/www.realestateleads.ca\/blog\/real-estate-client-investment-advice\/","title":{"rendered":"Client Investment Advice: RRSP, or Real Estate?"},"content":{"rendered":"
<\/div>

\"\"<\/a>As we\u2019ve said on a number of different occasions, more often than not a successful real estate agent is also a very knowledgeable one, and that\u2019s there\u2019s usually a direct correlation between the two. As it is with nearly every career, the people who don\u2019t stop striving and continue to learn are the ones who get ahead more naturally. As a real estate agent, every single time you can draw on your knowledge and provide sage advice to clients will go a long way towards establishing yourself as a real estate market and real estate investment expert.<\/p>\n

Here at Real Estate Leads<\/a>, our online real estate lead generation system is an excellent way for new realtors to have the power of the Internet hard at work for them generating buyer and seller leads and giving them the opportunity to meet with legitimate prospective clients. The more you know and the more you\u2019re able to share, the more likely it is they\u2019ll come to regard you as someone they can trust with helping them buy or sell a home. We continue to pile up very positive reviews for the service, and it\u2019s not surprising that the consensus seems to be that it\u2019s money well spent!<\/p>\n

Real estate is an investment, and that\u2019s true even for people who foresee themselves living in their current home well into their twilight years. In major metropolitan areas like Vancouver and Toronto, some people are explicitly counting on their real estate purchases to be a big part of their retirement. There\u2019s risk to that, as there is for any investment, but the ongoing demand for housing in these cities isn\u2019t going to abate anytime soon given Canada\u2019s ongoing population growth.<\/p>\n

The \u2018bubble\u2019 isn\u2019t likely to burst like some people continue to insist it will, and in honesty the way the market for detached homes has cooled is about as good as it\u2019s going to get for anyone hoping to see more \u2018realistic\u2019 prices for detached homes in Canada\u2019s 2 biggest cities.<\/p>\n

But to today\u2019s question, which is a better choice as an investment \u2013 Real Estate, or an RRSP? Let\u2019s discuss this and get some perspective from financial and real estate experts<\/p>\n

Both is Best<\/strong><\/h3>\n

Leverage wealth experts and mortgage brokers tend to agree that Canadians should be investing in both RRSPs AND real estate. It\u2019s true that people tend to think of either RRSPs or real estate investing for their retirement plan, but modern-day realities and an ever-rising cost of living means that the reality is consumers need both.<\/p>\n

Diminishing rates of return are one thing, but a growing number of Canadians don\u2019t have defined contribution plans, and if even if they do it\u2019s not like they give guaranteed payouts. It\u2019s fair to say that everyone needs higher amounts of forced savings.<\/p>\n

The reality is that for the vast majority of Canadians, their wealth is tied up in their homes. With this reality it becomes that the only solution to RRSP, TFSA, RESP, or investment savings catch-ups is essentially in the home equity of their property.<\/p>\n

Add to this the fact that average life expectancies are reaching 90 years old and it\u2019s increasingly likely that your registered savings account will a lot longer than your mortgage. This is why we\u2019re seeing the introduction of investment products designed to make certain rates of return exceed the initial cost of borrowing.<\/p>\n

Reorienting Mortgages <\/strong><\/h3>\n

In understanding this and understanding its relevance, we need to see retirement not as the point at which somebody stops working, but rather when they no longer need<\/em> to work. Sufficient money in investment accounts means debts are easily repaid in full. Then the acquisition of a mortgage becomes a by design move, and not one made out of necessity.<\/p>\n

It\u2019s also helpful for people to know that real estate investing doesn\u2019t have the same tax deferral on capital gains that RRSPs have. Home equity appreciation can be used as an RRSP catch-up, and for many people this is a very valuable resource to have at their disposal.<\/p>\n

Of course, cash flow is still an important component in investing, and investors seeking blue-chip properties they can own directly is always going to be preferable \u2013 provided they choose the right property (for which, as you should expect, they will be looking to you for expert advice).<\/p>\n

Choosing Wisely<\/strong><\/h3>\n

Choosing the right property depends on the current state of the economy, as well as its projected state. You don\u2019t just evaluate the property based on today, and instead you should be looking to where the underlying economic fundamentals will likely be in five or 10 years. The two biggest predictors of where a property will be are actual net migration of population inflow (which is powering housing demand in Vancouver and Toronto) and areas with strong GDP growth.<\/p>\n

Further, properties will positive cash flow will help meet the Canada Revenue Agency\u2019s deductibility elements. RRSP\u2019s offer diversified access to a number of different market options, and when they\u2019re combined with real estate investment then the investors are better guarded against instabilities or market volatilities.<\/p>\n

Sign up for Real Estate Leads here<\/a> and receive a monthly quota of qualified, online-generated buyer and \/ or seller leads that are delivered to you exclusively and for any region of a city or town in Canada. Once you claim that region, it\u2019s yours and yours alone and you\u2019ll be pleased to know that no other realtor is received those leads each month! They\u2019re yours, and what you do with them is going to be a reflection of how you present yourself as a valuable resource for these prospective clients. Being \u2018smart\u2019 about real estate is a great place to begin.<\/p>\n","protected":false},"excerpt":{"rendered":"

As we\u2019ve said on a number of different occasions, more often than not a successful real estate agent is also a very knowledgeable one, and that\u2019s there\u2019s usually a direct correlation between the two. As it is with nearly every career, the people who don\u2019t stop striving and continue to learn are the ones who […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-552","post","type-post","status-publish","format-standard","hentry","category-general-topics"],"yoast_head":"\nClient Investment Advice: RRSP, or Real Estate? - Real Estate Leads Blog<\/title>\n<meta name=\"description\" content=\"Client Investment Advice: RRSP, or Real Estate? - Real Estate Leads Blog\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.realestateleads.ca\/blog\/https-www-realestateleads-ca-blog-wp-admin-post-new-php-14\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Client Investment Advice: RRSP, or Real Estate? 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