Making your Real estate investment RRSP Eligible
An RRSP should be viewed as a basket of investments. In the basket you can place various eligible investments or financial instruments. Some of these RRSP eligible investments can include: stocks, bonds, GICs, mortgages, call-options, cash or mutual funds ....but neither Limited Partnerships nor real estate directly. Thus, Prestigious Properties, in conjunction with industry experts, accounting firms and several legal firms has created an RRSP eligible investment vehicle that allows your RRSP to participate in the performance of our apartment building Limited Partnership.
For most Canadians, investing in multi-family real estate can be done inside their RRSP, however there are some restrictions by province. Either way, inside or outside an RRSP, investing in the right real estate can pay excellent long-term dividends.
In order to participate in Prestigious Properties Investments using your RRSP, there is a 3-step process. The following diagram shows the relationship between the corporation that you will invest in and the RRSP money flow. For each $5000 LP unit you must purchase 100 Units at $50 per unit. Each unit consist of shares for $1 and bonds for $49. Only the bonds will be in your RRSP – not the shares. For example, for a $50,000 investment you must purchase shares worth $1000 personally and bonds worth $49,000 within your RRSP.
HERE ARE THE STEPS YOU TAKE TO PARTICIPATE:
Fill out forms to open an RRSP Account with Olympia Trust.
Fill out a 2nd set of forms instructing Olympia Trust to use the account to buy RRSP-eligible bonds from Prestigious Properties Kings Castle RRSP Inc
Each investment unit is $50: a bond worth $49 that accrues 4.5% annually (becomes RRSP eligible when we reach 150 investors), and $1 in shares from Kings Castle Limited Partnership Inc., in a separate arrangement outside the RRSP--- this allows you or someone you designate, to participate in any possible equity gain or return in addition to the 4.5%.
Mail the forms and accompanying cheques to us.
You can also read a more detailed explanation of the 4-step process of forms that you fill out to become an investor.
