Q.

A. The Canadian real estate market continues to show sale and price declines.  Although most experts do not expect a U.S.-style meltdown, a significant price reduction is expected. Regardless of which  province in that you live, real estate agents advise sellers “realistic pricing is key to selling your home.”  If you plan to live in the home, real estate will always be a good investment.

See Latest Calgary Market Update Here

Our federal and provincial government has made several initiatives to stimulate the economy and the housing sector. Many recent changes in the federal budget are excellent incentives for all homeowners and first-time buyers.

First-Time Home Buyers:
• New-increase!  The RRSP Home Buyers Plan withdrawal limits per individual have increased to $25,000 from $20,000, effective Jan. 27, 2009.

• New-tax credit!  After Jan.  27, 2009, homebuyers that have not owned a home in the current year or four preceding years may qualify for a $5,000 non-refundable tax credit.

Existing Homeowners:
• New-Renovations! Families that undertake renovations or alterations between Jan. 27, 2009 and Feb. 1, 2010 to their principal residence may qualify for a 15 per cent non-refundable tax credit. Cost of renovations must be greater than $1,000 and up to $10,000.

These are giveaways, check with your tax adviser/accountant.

Original Article Here by- Henry Choo Chong

This follows recent legislative amendments to the federal Bankruptcy and Insolvency Act (BIA) and the Companies’ Creditors Arrangement Act (CCAA). These changes are facilitating the coming into force of the Wage Earner Protection Program Act (WEPPA). As a result, “all types of registered investments are now subject to protection against the claims of creditors due to bankruptcy proceedings,” says Terri Williams, director of educational services for Dundee Wealth, “Only a few provinces already have laws in place to provide protection in their jurisdictions.”

Williams says financial advisors used to employ a strategy of putting RRSPs of small business clients into the life insurance industry’s segregated funds because seg funds are creditor proof. Advisors have been calling Dundee to verify that if creditor proofing was the only reason for using seg funds, they are now free to switch to mutual funds or lower cost alternatives.

Previously, an older person who inadvertently got into financial trouble may have concluded their best option was to declare bankruptcy. But now a Small Business person besieged by creditors won’t be in danger of forfeiting their RRSPs, Williams says. “Now she or he can rest assured their RRSP won’t be claimed by creditors.”

In 2003, the Canadian Federation of Independent Business conducted a survey that found 91% of small business owners used RRSPs as a retirement savings vehicle versus only 28% that used registered pension plans (which are already safe from creditors).

More information about the amendments to the Act is  available on the Office of the Superintendent of Bankruptcy Canada website here.

Original Article

i-Finance is a great product that allows you to pull out the amount of your RRSP’s or LIRA’s into a Line Of Credit that you in turn can use to invest, or spend how you would like to.

If this is something that you are interested in, please drop me a line at RealEstateBlogger@me.com, and I can forward the company that deals in i-finance in Calgary and area.