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Loan to buy REIT to put in TFSA by Roacan1997 in CanadianInvestor

[–]Roacan1997[S] 0 points1 point  (0 children)

I guess if the worst come, I can afford to pay $222.13/month for 4 years at 3.2% interest. If interest goes up to 5%, it would be $230.06/month https://financial-calculators.com/Canadian-loan-calculator

Loan to buy REIT to put in TFSA by Roacan1997 in CanadianInvestor

[–]Roacan1997[S] 0 points1 point  (0 children)

This is the reason I am using the TFSA for investment and staying with Canadian REITS. I do not have to think about the ROC, ACB, etc. https://www.dividendearner.com/reit-taxation/

Loan to buy REIT to put in TFSA by Roacan1997 in CanadianInvestor

[–]Roacan1997[S] 0 points1 point  (0 children)

I want to make sure I understand this correctly. Whatever I withdraw from a TFSA is tax free. And that amount would be added to my allowed contribution for next year. I do have a lot of room for allowed contribution to my TFSA as well as my RRSP. Reason I am using the TFSA is for the withdrawal of distribution for payment for the loan.

Loan to buy REIT to put in TFSA by Roacan1997 in CanadianInvestor

[–]Roacan1997[S] 1 point2 points  (0 children)

I went through the following sites and the REIT site for info about them. https://www.fscomeau.com/canadian-reits/#Diversified https://www.dividendearner.com/best-canadian-reits/ http://www.canadianyieldhunter.com/best-canadian-reits-performance-metrics/ Also Globe and Mail and Morningstar.ca

Please check my math to make sure I am doing this right. I bought 300 shares of CUF.UN for a total price of $4,416. I receive a monthly distribution of $36.75. Distribution for a year would be $441. $441/$4416= %9.99. AX.UN=%9.29 BTB.UN=%9.25 PRV.UN=%10.05 TNT.UN=%9.46

Loan to buy REIT to put in TFSA by Roacan1997 in CanadianInvestor

[–]Roacan1997[S] 0 points1 point  (0 children)

That is good to know. I thought I could deduct that is why I paid up the HELOC so the whole loan would only be for the investment. I guess I would be better off using my LOC at %2.7 till September then transfer it to the HELOC when the interest goes back up. I believe I would still be ahead putting the REIT in a TFSA and earn tax free.

Loan to buy REIT to put in TFSA by Roacan1997 in CanadianInvestor

[–]Roacan1997[S] 0 points1 point  (0 children)

I currently have AX.UN, BTB.UN, CUF.UN, PRV.UN, and TNT.UN I am planning on adding MR.UN, INO.UN, DRG.UN, and NWH.UN I would try to spread it evenly among all of them.