Self Direct RRSP Question

[yaonchung]

Hi Everyone,
I am wondering if i can use my Self Direct RRSP to invest into Rental income property directly without deduction from CRA? I only know one way to use this fund which is make a withdrawal which leads to it being taxable income. Is there any other way?
If anyone can direct me to where i can find more information about this topic would be much appreciated.

Thank you

 

[Thomas Beyer]

RRSPs cannot hold real estate directly. You can hold private equity that invest in real estate (REITs or mutual fund trust units) or publicly traded stocks or REITS, or you can be a lender via mortgages or MICs.

 

[yaonchung]

Thank you Thomas,
Can you explain what is MICs? sorry i have never seem that term before

 

[Thomas Beyer]

A MIC is a mortgage investment corporation, i.e. a firm that lends money and by law, has to send 90%+ of their earnings to investors. Most are private firms, but there are a few publicly traded ones.

All can usually be held in an RRSP account.

 

[stephenjones]

Hi Everyone,
I am wondering if i can use my Self Direct RRSP to invest into Rental income property directly without deduction from CRA? I only know one way to use this fund which is make a withdrawal which leads to it being taxable income. Is there any other way?
If anyone can direct me to where i can find more information about this topic would be much appreciated.

Thank you

There are other ways. Visit www.profunds.ca
Hope this helps.

Stephen

 

[Alvaro Sanchez]

You can lend your RRSP funds as first/second mortgages to other individuals. Try to read THE RRSP SECRET book from Greg Habstritt.

 

[Andy7413]

I read Greg Habstritt's book. The dilemma is always where to find those private investing opportunities. Any experts in this field that can help provide direction or recommendation on finding these investing opportunities?

 

[neill]

I read Greg Habstritt's book. The dilemma is always where to find those private investing opportunities. Any experts in this field that can help provide direction or recommendation on finding these investing opportunities?

A lot of the opportunities to both lend or borrow may exist within the REIN community. We have written second mortgages out of our RRSP for five separate parties, all through REIN relationships.

Due diligence is a must.

 

[Thomas Beyer]

Usually through mortgage brokers

 

[Andy7413]

Usually through mortgage brokers

is profunds.ca a recommended method, or better to go with broker? what are the advantages or one vs. the other?