Why Risk More Than You Have To?

Some of us are natural risk takers. We calculate risk and will take it more often than others. As such we may ask why invest in real estate and not the stock market? because we have come to know that the stock market can be risk ridden but still very profitable. Having said that, why take more of a risk than you have to?

We value the security of knowing our RRSP contributions will take us to retirement, or will they? Certainly they have value but as much as real estate property? There are ways now to replace the meager return we get on our RRSP money with substantially better value by investing them in real estate. You have to do your homework and be informed of the real estate property market but the returns on buying a home are far higher than the stock market or mutual fund market will give you on your RRSP money especially if that home is in Alberta right now.

The value of a home or property in the central Alberta corridor is second only to that same home or property in Denmark. We can use our RRSP money to finance second mortgages and make an interest rate that is twice or thrice what the bank will give. Better yet we invest that same RRSP money in a self directed plan and buy a home or property of our own using our own hard earned money. Any type of investment is a risk but it can be reduced by investing in a known market like real estate property that follows a fairly predictable pattern.

Rhonda Hoffman

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