Correct...and this is where I'm lacking in the balls department...too worried **** hits the fan and I won't be able to pay back the loans with the dividends.
I could always top up the TFSA, RRSP, RESP and just pull back from TFSA when needed.
|
|
|
COVID and the housing market
- Thread starter mimico_polak
- Start date
I could always top up the TFSA, RRSP, RESP and just pull back from TFSA when needed.
A friend owned shares in IBM and had a mortgage using some of them as collateral. When IBM tanked a bit the bank wanted more shares signed over.
TFSA as a bank account is just someone else letting you stuff your money into their mattress. Buying stock in a TFSA is a risk but pays a lot better and gains are not taxed. You can't use losses as offsets elsewhere.
To make it really big you have to take risks and accept the consequences. That is hard when you are responsible for others. I know of marriages that went south because the other half couldn't handle the bad times.
I knew a guy that had to move back from his Alberta foreclosed house to renting in TO. They took a bus with a suitcase each because that was all they could afford. It was hard with kids. A single can crash anywhere. Kids ask "Why"
Last edited:
Since you can get bent over by CRA for positions even a few months long, TFSA makes sense for buy and hold like bank stocks with minimal chance of long-term losses.
I put LSPD inside RRSP so if I trade it often it can't attract the sledgehammer that CRA uses if they consider you are operating a trading business. Down a bunch for me now but I expect good things over the next few years.
@mimico , you can always convert a portion of the secured LOC to a mortgage to save interest , once construction is over .
I would consider dealing with another institution if they will not wave the inspection assessment nonsense, they can google earth the house and do a 30 second search on sale prices in your hood, ( hint , that’s what they will do, just ding you $300 for the 30 seconds)
Sent from my iPhone using GTAMotorcycle.com
I would consider dealing with another institution if they will not wave the inspection assessment nonsense, they can google earth the house and do a 30 second search on sale prices in your hood, ( hint , that’s what they will do, just ding you $300 for the 30 seconds)
Sent from my iPhone using GTAMotorcycle.com
PM about to be sent.
ifiddles
Well-known member
This is absolute craziness...I have no words...
dailyhive.com
After 26 offers, Toronto semi-detached sells $669,000 over asking | Urbanized
Toronto real estate is still very much a seller's market, with one recently listed semi-detached home selling $669,000 over asking.
dailyhive.com
It's Bedford Park. It was way underpriced when they listed. They maybe paid 10% over what was expected but that's not unexpected if you have a few people that really like it.This is absolute craziness...I have no words...
After 26 offers, Toronto semi-detached sells $669,000 over asking | Urbanized
Toronto real estate is still very much a seller's market, with one recently listed semi-detached home selling $669,000 over asking.
ifiddles
Well-known member
@GreyGhost I've always lived in the burbs of Halton so Toronto neighborhoods are foreign to me...still, that much for a semi!!???...WOW...
The average GTA condo is now over 700K. We left crazytown long ago. When you look at it that way, the price doesn't seem quite as crazy (and no condo fees which are roughly equivalent to another six figures of mortgage).
Mikedezo44
Well-known member
I was blown away a townhouse down the street from my late brothers old house was listed at 825 and sold for 1.1 million a week ago. His wife got house after less than a year of marriage and no money put into it. He paid 295 6 years ago.
I was working at a detached home in that area. Two car garage. We needed some access room in the garage so the lady of the house moved her Escalade and we saw the Rolls, supposedly her hubby's ride. Nope, a spare, he arrived a few minutes later in his McLaren. Thick money there.
My prediction is it will be sold over asking...may be best to list it about 2-3 weeks before the next rate announcement.
Then you're almost guaranteed a quick closing because whoever buys it may want to lock in a rate.
That much I can guarantee
Sold for under asking…fired!
Mad Mike
Well-known member
Right now a Mortgage is better than a HELOC. Take the funds, use what you need, put the rest into a TFSA holding a secure dividend stock. The 3 to 4% tax-free dividend can be used to help pay the mortgage, and you can do all the payment bumps and annual prepays with the cash from the TFSA to speed up paying down the mortgage.
This was something I was considering doing. But I think I’m too conservative to make that type of leap with leveraged investing.
I would have about 300-400/month in payments at current rates. And the second mortgage is prime - 1.1% with a 20/20 prepayment.
I’d burn maybe a few thousand (4-6k) in interest annually but could that could jump with the impending rate increase.
|
|
|
|
|