Taking out your RRSP to buy a house in the USA
QUESTION:
I am a Canadian citizen living in the USA . They always tell me to
leave my RRSPs untouched in Canada, but I would like to use that money to
buy a house in Florida. Will it make sense to take the money for this,? I am
planning to stay here in the USA.
Thank You!
david ingram replies:
A tough decision. If you take out $40,000 from your Canadian RRSP to buy a
Florida house for $300,000 and the house goes down 10%, you will have lost
the RRSP money because the CRA will take 25% or $10,000 before you get it.
On the other hand, it would have been a great idea any time in the last five
years.
My inclination is to go for it as long as you are buying a home to live in
and can afford the payments figuratively and mentally if there is a downturn
in the Florida Market as I expect to happen.
Although not active in Florida for years, at one time in the 60's, I was
responsible for the sale of over 2,000 lots at Cape Coral (to Canadians)
I am a Canadian citizen living in the USA . They always tell me to
leave my RRSPs untouched in Canada, but I would like to use that money to
buy a house in Florida. Will it make sense to take the money for this,? I am
planning to stay here in the USA.
Thank You!
david ingram replies:
A tough decision. If you take out $40,000 from your Canadian RRSP to buy a
Florida house for $300,000 and the house goes down 10%, you will have lost
the RRSP money because the CRA will take 25% or $10,000 before you get it.
On the other hand, it would have been a great idea any time in the last five
years.
My inclination is to go for it as long as you are buying a home to live in
and can afford the payments figuratively and mentally if there is a downturn
in the Florida Market as I expect to happen.
Although not active in Florida for years, at one time in the 60's, I was
responsible for the sale of over 2,000 lots at Cape Coral (to Canadians)
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