How this woman can use her real-estate investments to achieve an early warm-weather retirement

Canada News News

How this woman can use her real-estate investments to achieve an early warm-weather retirement
Canada Latest News,Canada Headlines
  • 📰 nationalpost
  • ⏱ Reading Time:
  • 59 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 80%

Ontario woman’s three rental properties pay relatively little in current income, but they have appreciated by $424,000 in just four years

In Ontario, a woman we’ll call Linda, 48, is an administrator for a large corporation. Single, she brings home $4,870 from her job each month and nets $536 from three condo rentals with an estimated market value of $1.85 million. Her mortgages on rentals total $980,000. Her spending totals $2,834 per month. Real estate, including her home, make up 92 per cent of Linda’s total assets.Linda wants to retire in four years and live half the year in a warm place.

Family Finance asked Owen Winkelmolen, a fee-for-service financial planner who heads PlanEasy.ca based in London, Ont., to work with Linda in order to resolve her issues. “Modest spending and profitable investments make it possible for her to achieve early retirement,” Winkelmolen explains. Structuring retirement incomeTo add security to her finances and to make her early retirement plans more likely to work, Linda needs to reduce her leverage first and, secondly, grow her assets. If she makes $2,000 monthly payments on her HELOC, the loan will be gone in 10 months. Her remaining personal loan on which she has not made periodic payments, would be gone in another 10 months.

Selling the rental properties three years before age 65 is also wise because it will ensure that Linda can avoid the Old Age Security clawback that would be triggered by hefty capital gains. The clawback, which reviews the last two years, has a present trigger point of $79,054 in annual net income. As the properties are sold, Linda’s cash balances will grow, as will her taxes. Some of the gains can go to her Tax-Free Savings Account, which has a present balance of just $75.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

nationalpost /  🏆 10. in CA

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

What distancing? British beaches packed on hottest day of 2020What distancing? British beaches packed on hottest day of 2020Officials in southern England have declared a 'major incident' after thousands of people flocked to local beaches.
Read more »

Reopening B.C.: Priorities changing as real estate market ramps upReopening B.C.: Priorities changing as real estate market ramps up\u0022Personal safety bubbles\u0022 will increasingly be important as buyers will want larger lobby areas and more space around elevators so they can maintain physical distancing.
Read more »

Film producer, wealthy heir, political donor Steve Bing dies at 55Film producer, wealthy heir, political donor Steve Bing dies at 55Movie producer, film financier, real estate heir and major Democratic political donor Steve Bing has died. He was 55.
Read more »

Vince Carter officially announces retirement from NBA after 22 seasons - Sportsnet.caVince Carter officially announces retirement from NBA after 22 seasons - Sportsnet.caVince Carter has officially announced his retirement after 22 NBA seasons.
Read more »

Reopening Canada: The deep freeze is over, but real estate markets still a long way from normalReopening Canada: The deep freeze is over, but real estate markets still a long way from normalMay sales were up 57 per cent from April, but housing activity – sales and new listings – is down 40 per cent from a year ago
Read more »



Render Time: 2025-02-12 13:37:44