Smith Manoeuvre-Converting Bad Debt to Good

In Canada you are allowed to deduct the interest on a loan used for investment. The Smith Manoeuvre, coined by Fraser Smith, is a proven way of converting your non-deductible mortgage interest on your primary residence to a fully deducible loan. Here is how it works. Say you have a $250,000 mortgage on your home and […]

Read full story Comments { 0 }

Automating Your Real Estate Rental Collection

Passive income in real estate is what we all strive to achieve. The problem is passive income, on the most part, does not exist. The truth is that owning top performing investment real estate takes work. It is essentially running your own business and, as with most businesses, efficiency is key. Automating as much of […]

Read full story Comments { 0 }

Home Equilty Lines of Credit Limits Slashed by Big Banks

It’s no longer rumour anymore. As speculated in my June article , the major banks are reducing their allowable Home Equity Line of Credit (HELOC) loan-to-value limit from 80% to 65%. This is after a series of recommendations by OSFI (the Office of Superintendents of Financial Institutions) which governs banking regulations for federal regulated institutions. […]

Read full story Comments { 0 }

Why Not to Invest Now…or Ever

If you don’t know which excuse to use this year for not investing, here is a link to the “I don’t want to invest my money now because…” historical bible of excuses for not to ever invest. Although humorous in nature, it points out that it never seems the opportune time to invest, and that […]

Read full story Comments { 0 }

Did the Bubble Already Burst and We Just Can’t See It?

Despite the surge in Canadian real estate, especially in Vancouver and Toronto, values have been plummeting in real inflation adjusted-terms. If you bought a home in Canada a few years ago, even though ‘nominal’ home prices have risen, in real inflation-adjusted terms, or in gold or commodity-based terms, home values have gone down. Another way […]

Read full story Comments { 0 }

Get a Home Equity Line of Credit Before They Are Gone

If you have considered getting a home equity line of credit (HELOC), now may be the time to do so. Speculation is high that the next set of regulations to curb Canadian debt will be to scale back the maximum amount one can borrow against their home in the form of a home equity line […]

Read full story Comments { 0 }

Stock Market or Real Estate-Which Has Performed Better?

I often hear clients say that real estate is the best investment. Being a real estate investor myself, I would agree – sometimes. It depends on which market you invest in and what type of property you invest in. Speculative investors, having bought in Vancouver, have done well over the years. But how well? How […]

Read full story Comments { 0 }

Deferring Property Taxes to Grow Your Wealth

DEFERRING PROPERTY TAXES-Do you or your parents own a home with debt of less than 85% and are 55 years or older? If yes, then why not defer your property taxes? Deferral of property taxes is available to individuals 55 or older. The interest rate is charged at prime minus two percent (1% as of […]

Read full story Comments { 0 }

Is Your Debt Really Out of Control?

We have been hearing a lot recently about Canadian’s taking on too much debt. At the same time we heard last month that Canadian’s net worth is at an all time high. So what gives? The following article explains which Canadian’s are holding the majority of debt. Since the Bank of Canada cannot raise interest […]

Read full story Comments { 0 }

Exempt Market Products – Solid Returns Without the Volatility

Most Canadians put their life savings into stock market related securities such as mutual funds. Historically, on average, these have been decent performers, but investment returns are often eroded due to knee-jerk emotional reactions due to market volatility. People tend to buy high and sell low. When the markets plummet, people’s first reaction is to […]

Read full story Comments { 0 }