Hello Everyone with Hamilton Real Estate Investments!!
We’re back from the cottage and a not so restful vacation. This was our third vacation as a parents, but first with five week old Bruce. I remember the old, childless days where I got reading done, brainstorming, returning from vacation full of ideas for our business and recharged. This time, not so much. I think I need a few days to recover!
Apologies to anyone I haven’t gotten back to, Meaghan and I will be following up next week.
In the few, quiet minutes I had with Cherry to discuss business/investments, we discussed investing in RESP’s for some diversity, self directed into some index funds to minimize management expenses. The government gives you 20% of your after tax investment after all. Cherry being a financial whiz quickly rhymed off a couple reasons against RESP’s:
- The plan max is $7,200, considering the expected cost of University tuition for our kids will be around $140,000 EACH, RESP’s alone will not be enough.
- The free 20% and investment gains can not be withdrawn to be re-invested like you can do with real estate when you refinance a property. We’re doing exactly that now and will elaborate below
- The free 20% is nice however we’re talking about $1,440. I opened Robin’s mortgage statement yesterday to see how her lovely tenants have paid down her mortgage $400 last month, so in 3.5 months, Robin’s investment had earned the same free $1,440
- In conclusion, we may still invest in RESP’s but our priority will remain real estate. The return on our time makes more sense.
Planning Our Next Investment
Five years have passed for one of our investment properties and it’s time to renew the mortgage. Thanks to this lovely investment property, we’re going to extract about six figures to use towards an investment property for my son. Being the heavy analytical thinker I am, before settling on buying another house, I went through all our investment options: stocks, index funds, gold/silver, 2nd mortgages, RTO, 2nd suites, student rentals, etc…
While listening to Tony Robbins’ “Money: Mastering the Game” he offered advice in how investors should only invest in a company or stock if they have a knowledge advantage. Knowing what I know of the financial markets (I went to school for Business with a focus on Finance and Marketing, I previously held my Canadian Securities Course), I understand I am a below average investor therefore that’s out. But where do I have a strategic advantage? Easy answer, Hamilton real estate as my power team is 2nd to none. I have the best contractors, property managers, lawyers, mentors, network, etc and I know this investment Realtor whiz with a track record of producing successful real estate investors. Looks to be a pretty easy decision to stick with Hamilton real estate! 🙂
Continuing with theme of five years and real estate investments, that will be the theme of our upcoming webinar on Wednesday August 26th, 9pm EST. We will be interviewing some investors who have been investing for five years or more and exploring how their portfolios have performed and the difference it will make for their futures. Register here to tune in to learn the secrets from veteran investors on how they are making their way to financial freedom.
Thank you for reading and Happy Hamilton Real Estate Investing Everyone!
By the way, we need your help! We have a number of investors looking for investment property so if you know anyone looking to sell their property anywhere in Ontario please let us know!
Erwin | MrHamilton.ca
PS: If you are just starting out investing, start by spending more time with like minded people and take guided tour of Hamilton by joining us for the next Mr. Hamilton Inner Circle by clicking here!!!