Real Estate is important for a diversified portfolio. Besides the great tax breaks, Canadian real estate helps diversify and protect your retirement portfolio.

1. Sharp Asset
Management Inc.
The Role of Real Estate
in Retirement Planning
in Canada
416-722-9009 contact@sharpasset.com

2. Introduction:
• Planning for retirement is essential to ensure you have enough
income to maintain your desired lifestyle after you stop working.
• A secure income stream is crucial for covering your expenses in
your golden years.
• Real estate can be a valuable tool to consider when crafting your
retirement plan in Canada.

3. How Can Real Estate Contribute to Your
Retirement Plan?
Benefit Description
Steady Income Stream Rental properties provide a consistent
income source, supplementing pensions
and CPP to uphold your preferred
lifestyle.
Appreciation Potential Historical trends suggest Canadian
property values may appreciate,
offering a potential gain upon sale.
Inflation Hedge Real estate in Canada tends to keep
pace with or surpass inflation,
safeguarding your purchasing power.

4. How Can Real Estate Contribute to Your
Retirement Plan?
Benefit Description
Tangible Asset Owning and controlling real property
fosters a sense of security and
stability.
Taxation Advantages Strategic tax strategies like Capital
Cost Allowance (CCA) deductions and
mortgage interest can offer benefits
(consult a tax advisor).
Portfolio Diversification Real estate diversifies your investment
portfolio, mitigating overall risk as
it often operates independently of the
stock market.

5. Tax Advantages of Real Estate for Canadian
Retirement
• Principal Residence Exemption (PRE): Your principal residence
enjoys a capital gains exemption (consult a tax advisor). This
means profits from selling your primary home are generally not
taxed.
• Reduce Taxable Income: For rental properties, claim Capital Cost
Allowance (CCA). Deduct a portion of the building's cost from
your rental income over time, lowering your taxable income.
• Downsize & Save: Selling your principal residence for a smaller
home can generate tax-free capital, lower property taxes and
maintenance costs, and potentially free up cash for retirement.

6. Considerations for Canadian Retirement Real
Estate Investment
Financial
Considerations
Upfront Costs: Carefully factor in down payment,
closing costs, potential renovations, and
vacancy periods.
Ongoing Costs: Property taxes, maintenance,
repairs, and potential management fees can
erode profits.
Cash Flow Analysis: Ensure the property
generates sufficient income to cover expenses
and yield a profit.

7. Considerations for Canadian Retirement Real
Estate Investment
Time
Commitment
Management Responsibilities: Landlords
dedicate time to tenant concerns,
repairs, and property showings.
Liquidity Considerations: Selling real
estate takes time, limiting immediate
access to cash.

8. Considerations for Canadian Retirement Real
Estate Investment
Market Risks
Market Fluctuations: Be prepared for
potential downturns that could impact
property value.
Interest Rate Sensitivity: Rising interest
rates can affect mortgage payments and
profit margins.

9. Contact us
21 Greenwin Village Rd.
Toronto, Ontario M2R
2R9
416-722-9009
contact@sharpasset.com
P.O BOX 74539
Humbertown Centre,
270 The Kingsway
Toronto, ON M9A 5E2
www.sharpasset.com

10. Thank you