How Hard are Your RRSP’s Working For You?
A Trip to the U.S.
We recently came home from a 5 day stay in Auburn Hills, Michigan. The weather was great, the shopping amazing and lots of dining options. As we are always interested in the housing market we decided to take a tour in the surrounding area to find out how bad the housing crisis was. We didn’t see many “For Sale” signs up, but decided not to let that stop us from viewing any homes.
We visited the local Keller Williams office and were told that for every 1 home in foreclosure there were 50 more that were still waiting. How incredible is that!!
We found homes in Troy, Michigan (15 kms from Auburn Hills) and to give you an idea of the area, it would be comparable to Woodbridge. Below is a picture of a townhouse that we got a chance to see while we were down in the U.S. This home was over 1600 sqft. and was priced at $75,000.
What would be the benefits of investing in the USA? Their market is so unpredictable right now. There are 3 factors to consider-
- A home going for $75,000 would require a 25% down payment…$19,000. At our exchange rate now that would be just under $18,000 Canadian!
- Interest rates are at an all time low. The US will most likely not be raising interest rates anytime soon!
- These homes are in an amazing location. Fairly new builds, great lot sizes and way under value! Think back in history- when was the last time the Canadian dollar was this strong compared to the US? When were properties in the US more than 60% below list price?
We still have some homework to do….. but we’re getting close to making a move into into the U.S. market. Although the states are still in a huge mess, the housing market is at the bottom or very close to it. Remember, you don’t always have to time the bottom of a market to be profitable… as long as you’re close to it you, you’ll do well. Keeping in mind these are longer term investments. Thoughts?
How Hard are Your RRSP’s Working for You??
While we were down in the U.S. I picked up these funky shoes called Komodo’s. Now if you haven’t heard of these shoes, they’re suppose to make you run faster. So to test it out, I ran full tilt in the store!! Probably not the best place to test them out, but I did. A few people turned and looked at me weird but, I had to make sure it was going to get me to where I needed to be in the time frame I was looking for. Definitely going against the crowd making this purchase….. but I did it!!
So maybe that’s why I turned to Real Estate investing. The average Canadian does what they are told when it comes to planning for their retirement. Invest in RRSP’s, buy some GIC’s or even some Saving Bonds and wait for your investment to slowly grow. So many Canadian’s are falling short of the lifestyle they want for their retirement. Darlene saw it every day while working in the branch.
Now….. I’m not knocking these types of investments, I hold them myself. What I’m saying is you need a Komodo mix of investing in your portfolio as well and Real Estate provides exactly that. Look at the top successful people in the world…. the vast majority own multiple properties in their own backyard or in other parts of the world.
Many people will say… I want to play it safe. With the recent upheaval in the stock and mutual fund markets, how far has your money gone in the last ten years? Is it creating you multiple streams of cash flow to make your life easier?
Is Real Estate investing a walk in the park? No….
But it can be easier when you have the right team behind you. When you have the right mentors, the great accountants, the savvy mortgage brokers, the sophisticated lawyers. This is why we continue to send out our bi-weekly newsletters so that you can learn from our mistakes and also when we get it right.
Remember, the team we continue to build is your team as well. You just have to decide for yourself when you would like to use them and get your but in gear.
What are you doing so that in the next ten years you’re going to be where you want to be? I know one thing for sure, 10 years from now will fly just as fast as my new Komodo’s!!
So until next time…. Make the Smart Choice.
