A million-dollar TFSA, https://business.financialpost.com/personal-finance/taxes/the-road-to-the-million-dollar-tfsa-is-getting-shorter-for-millennials, sounds great except I’m not 100% convinced about these assumptions:
a) earning 4.7% yearly, compounding annually,
b) continuing to put in max $$$ every year for 47-consecutive years without fail.
There are simply too many ups & downs over a lifetime.
But, say you buy a half double like one of my daughters did a few years ago in Ottawa for $345,000 after which she put in a basement apartment for $80k for a total investment of $425,000.
She rents her basement apartment, so she manages to live in a 3-bedroom, 2 and ½ bath home for just $600 a month after paying for everything (mortgage, property taxes, insurance, repairs, maintenance, tech package…)
She was 26 when she bought it. After 47-years (and if home prices go up 4.7% a year, which seems likely given that in many desirable North American, Asian and Euro cities, it’s much higher than that), she will have a place worth $3,680,297. She needed $80,000 in equity to do this ($5,000 from her and $75k from the bank of mom+dad).
Which is more likely to succeed as an investment strategy? You decide.
FOR REAL ESTATE INVESTMENT AND BUSINESS COACHING THAT’LL HELP YOU PROVIDE FOR YOURSELF AND YOUR FAMILY FOR 3-GENERATIONS, PLEASE CONTACT:
Bruce M Firestone, B Eng (civil), M Eng-Sci, PhD
Real Estate Investment and Business coach
Century 21 Explorer Realty Inc broker
Ottawa Senators founder
• MAKING IMPOSSIBLE POSSIBLE
• FREEDOM VIA REAL ESTATE INVESTMENT AND PB4L, PERSONAL BUSINESS FOR LIFE
• FEHAJ, FOR EVERY HOME A JOB
• MAKE YOUR HOME WORK FOR YOU, INSTEAD OF YOU WORKING FOR IT
• HIGHER ROI NOT JUST FOR OWNERS AND INVESTORS, BUT FOR TENANTS, GUESTS, VISITORS, NEIGHBORHOODS, COMMUNITIES, TOWNS, VILLAGES, CITIES AND THE ENVIRONMENT TOO
Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.