Author Archives: johnwilson

Stock market plan

As the price of houses and apartments has increased significantly, it no longer makes sense as an investor to purchase properties for the purpose of having a rental business. At these sky high prices, the rental income will not even cover the mortgage, and interest rates could still rise.

Another investment strategy:

Take out $300,000 mortgage on your own property

Subscribe to the Motley Fool Canada Dividend Investor Service to do your research, and use the $300,000 cash to purchase a portfolio of Canadian dividend stocks.

Use the dividend cash to make mortgage payments and for extra cash.

After 25 years, the mortgage is paid off completely and you have a large retirement stock fund, that paid for itself.

The risks are that your stocks will drop in value or you lack the financial discipline to hold onto the stocks and collect dividends.

Buy stocks at the 52 week low, and be convicted of the financial plan in order to mitigate these risks.

Now, it is December 27, 2018. The stock market has dropped significantly, and stocks can be bought at a bargain price.

Regarding taxes:

I am also an accountant.

If you take out a mortgage for the purpose of investing in stocks, all the interest paid can be deducted on schedule 4 – carrying charges on your personal income tax return. This is a tax secret that people show off about getting away with. Make sure to instruct the mortgage advisor not to mix your stock investment mortgage with other regular mortgage loans.

Also note that while REITs tend to have higher dividend payments, their dividends are taxed as other income and are not considered eligible dividends, so they will be taxed at a higher rate, because REITs distribute 90% of their net income and reduce that net income from their income statements.

 

Bank of Nova Scotia – typical big Canadian bank, but it is expanding into South America and has more growth potential. The other banks all expanded to the USA, which is already saturated. 4.61% dividend, stock price dropped a little bit.

American Hotel Income Properties – hotels in USA and motels near train stations. 11.75% dividend. Stock price dropped about 25%.

Ciniplex – major movie theatre company, can afford to pay 6.3% dividends and have plenty of funds to invest in diversification. Stock dropped 30%. Has market dominance.

Chemtrade Logistics Income Fund – stock dropped 50% and has 11.74% dividend. Sells chemicals

Pinnacle Renewable Holdings – sells wood pellets for power generation to Europe, stock dropped 40% and has 5.19% dividend.

Apple Hospitality REIT – hotel REIT in the USA that has medium quality hotels. Recession proof as people go to cheaper hotels in recession. 7.75% dividend. Stock dropped a little bit.

Dream Industrial Real Estate – warehouse REIT in Canada and USA, 6.64% dividend rate. Warehouse REITs are growing because of e-commerce, which needs warehouses.

Crius Energy – fast growing US utility company giving 17.35% dividend yield, stock dropped 25%

Chesswood Group – leases commercial equipment and provides loans, 7.66% dividend

Brookfield Renewable Partners – 6.85% dividend, renewable energy company

Freehold Royalties – owns and leases oil royalties, 7.14% dividend

Pivot Technology Solutions – 17.02% dividend, Sells IT hardware and software solutions.

Inovalis REIT – rents out office space in France, 8.31% dividend in Euros

Dream Global REIT – rents out office space in Germany, 6.27% dividend

BSR Reit (HOM.U) – rents property in southern USA, discounted price as it is a new REIT, 5.88% dividend

Assignment sales

Foreign buyers purchasing pre-sale condos and then selling them before construction has commonly occurred for years. The NDP’s housing plan includes measures to make it harder for foreign buyers to purchase property by increasing foreign buyers tax from 15% to 20%, and requiring assignment sales to be disclosed in order to pay capital gains tax.

Timeshare

High level timeshare based in 5-star premium luxury hotel in Mexico, the Grand Mayan. Current selling price is 65,000 USD and only asking 42,000 USD.

2 weeks use annually, no yearly fee

Websites: https://www.vidanta.com/ & http://grandmayan.net/

TimeShare for Sale

Club Intrawest Timeshare

120 points per year available for use

Asking Price: $8,000

 

Here is your chance to own Club Intrawest points at less than 50% of the current selling price.  (now called Embarc and managed by Diamond resorts)
 
120 floating points for use in different locations in different variations.  
 
Current points are selling at $180 per point.

 

Beautiful, fully-loaded suites, choose from 12 locations, great for singles, couples, and families. 

Five star resorts with cooking facilities and many amenities. Choose from studio units, 1 bedroom or 2 bedroom suites.

You can book up to 11 months ahead.

 

Membership privileges at the following popular resorts 

Whistler, Vancouver, 

Ucluelet, British Columbia, 

Panorama (British Columbia)-

Blue Mountain (Ontario), 

Tremblant (Quebec), 

Palm Desert (California), 

Vancouver downtown (British Columbia)

Sandestin (Florida), and 

Zihuatanejo (Mexico)

Vilar de Golf -Algarve, Portugal

Le Club Mougins, France

Royal Regency Vincennes, France

 

For more info on Embarc Resorts, see: www.embarcresorts.com

includes 120 banked points for 2017.

 

Embarc points are current selling at $180 per point or $21,600.