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Retirement and Real Estate

When you start to see things like a new Ontario pension plan being proposed (now on hold), warnings about Canadian debt levels and the continuing message that we’re living longer so need to consider working longer, it’s probably time to take notice that there’s a growing concern that Canadian’s won’t have the financial resources they need to retire.


The latest person to add their voice to the issue is the governor of the Bank of Canada, Stephen Poloz. His message: “Canadians must be ready to adjust their retirement expectations in the face of continuing ultra-low interest rates.” Socking away money in a retirement savings account, bonds, or GIC’s is no longer a guaranteed way to grow your wealth and ensure a comfortable retirement.


For many of us, not only are we having to worry about our own retirement, we’re now contemplating how to take care of ageing family members so they can live comfortably.  


As life becomes more expensive, it’s important to pay attention to what the Governor is saying and become more active in our planning for the future. My personal strategy has been to start growing my real estate investment portfolio again.


The great thing about real estate, unlike other investments, is that you can leverage a relatively small amount of money to purchase a property that can then be rented out and paid off by someone else. A pretty amazing arrangement if you ask me. In a low-interest-rate environment like we are now, you get the added benefit of reduced carrying costs and potential for faster equity build-up. Over time, as you hold onto the property, your cash flow grows, your equity grows, and the property’s value increases. Sound interesting?


Whether you’re buying a property now to have a secure nest egg for the future, or to accumulate equity to help a child pay for university or a parent’s care, real estate is a great long-term investment that should be considered as part of any wealth building plan.


If you want to learn more about investing in real estate, or how real estate can help you achieve your financial goals, get in touch, I’d be happy to help.






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